Your mortgage property second Information
A Life time mortgage has similar features to a normal mortgage in that it is secured on the property usually as a first charge. The mortgage deed contains the rights and obligations of the homeowner and the Lender. However there are a number of fundamental differences, the main one being that there is no specified term because the mortgage is structured for the lifetime occupancy of the home owner. The interest rate may be higher to reflect the uncertainty of an open ended mortgage agreement. Also many schemes offer a fixed rate of interest for the life time of the loan. Therefore borrowers are able to calculate the amount of the outstanding balance at any time in the future, so they will know exactly where they stand in relation the rolled up interest. Dependent on the type of scheme and age of the home owner it may be possible to borrow between 25%- 40% of the property valuation. Draw down schemes enable homeowners to take ad hoc capital sums rather than all of their equity release at once. If some of the equity release money is not required immediately, this avoids the unacceptable scenario of borrowing at 7% and investing the loan money at say 5%! When the property is sold due to death or the need to go into long term care, the loan and any accumulated interest is repaid to the lender and the balance is left to beneficiaries or to help pay for private long term care fees etc.
Conclusion
Due to the fact that a mortgage is placed as a charge on the property this will have an adverse effect on the home owner's beneficiaries in the event of death or when the property is sold. In particular the amount repayable to the lender will be greater in respect of roll up mortgages because the outstanding loan balance continuously increases leaving less capital to the home owner's heirs. Unlike some equity release schemes, the life time mortgage ensures continued ownership of the property.
Article author: Shaun Dalton
Hard Money in Today's Mortgage Market by Leonard Rosen
America's hard money expert, Leonard Rosen of Pitbull Mortgage School,, tells how hard money can be used in today's vulnerable mortgage market. As we all know, the sub-prime mortgage market has gone through significant changes in the past few months. The implosion of the sub-prime mortgage market has created an outstanding opportunity for mortgage brokers, loan officers and hard money lenders to make available an array of loan products to assist in financing to many classes of borrowers.
I am asked almost daily what are the appropriate uses for hard money and why would a borrower use this type of mortgage financing.
Hard money can be an effective tool for the residential and commercial borrower. In the case of a commercial borrower, hard money may be considerably cheaper than bringing on a equity partner. An equity partner may want a much higher equity stake in the project than the owner feels comfortable with. Especially when funds are only needed for a short term.
In a residential situation, hard money can be used for almost all of the following reasons:
1. Borrower has a sub 500 FICO score
2 Borrower needs an interest only payment.
3. Borrower is in foreclosure or notice of default.
4. The property is currently listed for sale
5. Borrower has no credit history
6. There is no title history or seasoning.
7. Borrower needs cash out.
8. The property is in a trust
9. The property is in probate
10. Borrower is currently in Bankruptcy
11. Borrower has no green card.
12. Borrower in Forbearance Agreement.
As you can see there are many situations that could be applicable for a hard money loan.
Article author: Leonard Rosen
The reverse mortgage turns the equity of the home into tax free cash. Reverse mortgage is more of a loan advance. While the borrower lives in the home, the borrower does not repay the loan.
Any senior who is sixty two years or older is eligible for the reverse mortgage. The home must have some kind of equity. And, the home is the primary residence of the borrower.
Reverse mortgage differs from home equity loan. The mortgage lenders pay the borrower the lump sum, regular periodic payment, line of credit, or combination. The line of credit allows the borrower to choose how and when to get payment. The repayment of loan only happens in reverse mortgage when borrower permanently moves, dies, or sells.
At the time of repayment, the mortgage lenders use the home to repay the loan. The home pays off the principal, interest, and closing costs of reverse mortgage. Anything extra goes to the remaining relatives. In case of deficit, the mortgage lenders make up for the deficit.
Since the borrower retains the title of home on reverse mortgage, the borrower remains the owner of the home. He or she is responsible for the maintenance, property tax, insurance, and utilities. The mortgage interests in reverse mortgage are not mortgage interest tax deduction. However, the borrower can claim the mortgage interest on current first and second mortgage. Even though the borrower is still paying off the first and second mortgages, the mortgage lenders can allow the borrower to go on reverse mortgage.
The borrower can owe only on how much is the home. The mortgage lenders can only go after the house to pay off the mortgage. The assets and estate of the borrower are safe from the mortgage lenders. This is more commonly known as non-recourse loan.
For more resources about
reverse mortgages or about
reverse mortgage for seniors and especially about
information on reverse mortgages please review these pages.
Article author: Fabiola Groshan
