According to a number of sources, there are an increasing number of people who are choosing to take advantage of their home equity.
Whether it's because many seniors are experiencing a loss of pension benefits, inflation, rising home heating costs or other reasons, many are using their home equity to cover daily costs. According to a source:
Even in the midst of a housing recession, one segment of the mortgage market has been booming: reverse mortgages, which provide a line of credit or monthly payments to seniors 62 or older, using an existing home as collateral.
Reverse mortgages enable seniors to receive payments based on their home equity. As a result, more seniors are able to keep their homes and make ends meet.
So, how does a reverse mortgage work? The simplest explanation is this: seniors who apply for a reverse mortgage can receive a lump sum, monthly payments or a line of credit based on their home equity.
Is there a catch? Surprisingly, no. When seniors take advantage of their home equity with a reverse mortgage, they cannot lose their homes. The money received needs to be repaid once the homeowner leaves the home, sells the home or passes away.
As a result, many find that taking advantage of their home equity with a reverse mortgage is a great opportunity - one that will allow them to make ends meet and avoid the struggles that may come once they no longer are bringing in a significant income.
This is a copy of my Weekly newsletter. Every Week I publish a copy of this newsletter to my active database. Anyone who wishes to receive this newsletter directly can email me at jsaffiedine@atlantismortgage.com and I will put you on my email campaign. Anyone who is on it and wishes to be removed can just click the unsubscribe button. If you would like to know the trivia ansewer please email me also and I will email it to you. www.atlantismortgage.com 866-357-9100
Are you ready to become a homebuyer? Are you aware of Michigan Mortgage loan options and how those options will affect you?
For example, do you know that the traditional limit for a mortgage for a single family home is $417,000? If you're a homebuyer and are interested in luxury properties - condos or homes on the lake shore, larger homes that are more secluded - chances are good that you could be looking at homes that exceed that price.
If so, you'll need to look into a Michigan jumbo mortgage loan. A Michigan jumbo mortgage loan is not altogether unlike a traditional mortgage, it's just that it's a larger mortgage.
As a result, you will need to have a larger amount set aside for a down payment on the home that you buy. And, just as your down payment will need to be great, homebuyers needing a Michigan jumbo mortgage loan are likely to find that they pay higher interest rates.
If you're looking at buying a home on the lake, or if you're looking at other more expensive properties, you might find that you need a Michigan jumbo mortgage loan. If so, you'll want to talk with a loan advisor who can help you to get the best possible rates on your loan and who can talk to you about all of the options for your situation.
Are you ready to buy a home of your own? Have you looked at your credit reports, started making a list of what you're looking for in a home? Have you taken steps towards finding a real estate agent or towards buying a home on your own using a flat fee real estate service?
Once you start taking steps towards buying a home of your own, you'll hear a lot about the importance of having a pre-qualified loan. Having a pre-qualified loan is enough to let real estate agents and you know how much you'll be able to spend on the home that you decide to purchase.
But is a pre-qualified loan enough?
With a pre-qualified loan, you'll find that the lender looks over your credit history, your income and assets and provides an estimate of the mortgage you will be eligible to take out. However, a pre-qualified loan is not a commitment from that lender.
In order to know exactly what your mortgage loan options are, you'll want to go a step beyond a pre-qualified loan: you'll want to be pre-approved for your mortgage.
With a pre-approved mortgage, you'll find that you have more control: you'll know what your loan rates will be; you'll know how much you can offer on a home. This control will give you more buying power than a pre-qualified loan will because you and the lender will have all of the information ready.
It's a rare case that, when buying the house, a mortgage loan isn't necessary. In other words, very few people have tens or hundreds of thousands of dollar available to just drop down so that they can buy a home of their own.
Mortgage loans come in all varieties. Adjustable rate mortgages, fixed rate mortgages, loans that are repaid over 10 years, 15 years or even 30 years, mortgages with no down payment on the home or no closing cost mortgages are all loans that you'll hear about when you're looking into buying a home.
But when you take out a mortgage, there's one other thing that you will need to consider: is there ever a right time to refinance your mortgage?
When you refinance your mortgage, you have the opportunity to take out a new loan to pay off your current mortgage. Sometimes, it's a great idea to refinance, other times is isn't.
If you have an adjustable rate mortgage and interest rates are climbing, it may be a great idea to refinance at a low fixed interest rate. If you have a long term mortgage, want to avoid early repayment penalties and have more disposable income than you had thought that your would, it can be good to refinance for a shorter term loan.
Similarly, it may be wise to refinance if other situations change: you'll be staying in your home longer, or you wish to make upgrades to your home and want to tap into your equity.
It is important, however, that you speak with a loan counselor prior to making the decision to refinance. It's important to know all of your options, the risks and the benefits as well as the advantages and disadvantages that may exist when you refinance.
Is that to say it's not a good idea to refinance your mortgage? Not at all: it's just to say that, just as you did your research to get a mortgage, it's important to know all of your options before you refinance.
This is a copy of my Weekly newsletter. Every Week I publish a copy of this newsletter to my active database. Anyone who wishes to receive this newsletter directly can email me at jsaffiedine@atlantismortgage.com and I will put you on my email campaign. Anyone who is on it and wishes to be removed can just click the unsubscribe button. If you would like to know the trivia ansewer please email me also and I will email it to you. www.atlantismortgage.com 866-357-9100
Well before you apply for a Michigan mortgage, there are some steps that you can take to ensure that you get the best loan at the best rate.
Take a good look at your credit. You can get a free credit report so that you know your credit score and, if you find that there are problems, you can work on getting them corrected before you apply for a mortgage loan.
Make an effort to boost your credit score. Make sure that you've paying your bills on time and try to pay off a lot of your debt. You'll be in a better position for getting great rates on you Michigan mortgage if you're using half or less of the credit that's been extended to you.
Start saving. As soon as you know that home ownership appeals to you, start setting aside money towards a down payment. Start working from a budget so that you'll be ready for the financial responsibilities of home ownership.
Research your options. While Atlantis Mortgage loan counselors can tell you a lot about different Michigan mortgage loans, you'll be in a better position to ask questions and get the answers that you need about different loans if you know what to ask.
Look at your credit, boost your credit score and then, when you're ready to apply for a Michigan mortgage get in touch with Atlantis Mortgage. They'll work with you to answer your questions and get the right loan for you.
When some people choose to become homebuyers, they look for a starter home: a small house or condo. Others look to become homebuyers by investing in a luxury property. Still others choose that their dream home is the home that they will have built themselves.
These homebuyers don't look at homes per se, they look at land, the look to architects and designers they look to construction companies. They also don't look at traditional mortgage options.
Rather than applying for a traditional mortgage, homebuyers planning to build their dream home will need to apply for a construction loan - a mortgage for a property that has not yet been built.
When homebuyers apply for a construction loan, the amount of financing available to them will be based not on what exists, but on what the property will be. Construction loans are based on the value of the land, the estimated construction costs as well as the homebuyer's current assets.
The home of your dreams doesn't have to stay in your dreams: the right construction loan for homebuyers can make it a reality. If you're looking to build your dream home, learn more about construction loans today.
If you're shopping for a new home, there are some important things to consider. First, you'll want to look at what you need in a property. Then you'll want to research real estate agents, mortgage loan options and neighborhoods.
Once you know more about your options and are fully committed to purchasing a home of your own, there's one more thing that you can do - something that will give you an advantage over other buyers: you can apply for a pre-qualified loan.
When your mortgage is a pre-qualified loan, you'll know exactly how much house you can afford and what your interest rates will look like. But a pre-qualified loan doesn't just benefit you in these ways: it also gives you an advantage with real estate agents and sellers.
Agents, when they know that you have a pre-qualified loan will work harder to find you the home because they'll know that what you can afford. Sellers will be better able to work with you because, when you make an offer, they'll know that you can commit to your offer price.
In other words, a pre-qualified loan gives you an advantage because everyone knows what to expect: there's no second guessing.
How's your current mortgage working for you? What's your interest rate like? Do you know whether or not it would be possible to save if you were to refinance your mortgage?
Many people find that, when they refinance, they are able to secure a fixed rate on their loan rather than the adjustable rate mortgage they started with. Others find that, when they refinance, they're able to lower their monthly payment. If you find yourself in a more financially stable position, you may be able to refinance with a shorter term loan so that you will own your home sooner.
But should you refinance? On a lot of levels, that depends on your own situation.
If you need to be able to cash in on your home's equity to pay off other debts, it might be a great plan to refinance. If you're looking for a better interest rate, then refinancing may be a good idea for you.
However, if you are looking at selling your home in the near future, you may find that you don't benefit by refinancing. You also should think twice about whether or not to refinance if you rely on the tax deductions you receive with your current mortgage.
If you're not sure whether or not you should refinance, there's one thing that you should do: talk with a mortgage loan counselor. You'll find that you're able to ask questions, get answers and even find the right loan when you have the right advice.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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