Sunday, September 5th, 2010
There is a lot of confusion between the terms “reverse amortization mortgage” and “reverse mortgage.” Compounding the confusion is the fact that the word “amortization” is probably the hardest word in the English language to spell. It is commonly written by some very intelligent folks as amorazation or amerazation.
As a result, many people just leave the amortization part out, and do web searches for reverse mortgages when really what they want to find out about, and hopefully learn to avoid, are negative amortization mortgages.
On the other hand, some people may be interested in a reverse mortgage, but end up being solicited by a throng of crazed mortgage brokers who want to sell them a negative amortization mortgage.
Let’s see if we can help lift the fog on these confusing terms that describe a couple of very dissimilar types of mortgages.
A reverse or negative amortization mortgage
A negative amortization mortgage is sometimes referred to as a reverse amortization mortgage. With either terminology, what happens with this type of mortgage is that the principal owed on the mortgage is allowed to increase in the early stage of the mortgage. This early stage is commonly referred to as the negative amortization or negam portion of the mortgage. This negam stage usually lasts 3 to 5 years. Read more...
Posted in Mortgage Loan | No Comments »
Tuesday, July 20th, 2010
With so many different types of mortgage available, it’s difficult to determine the right one for you. Before you start looking at available mortgages, however, it’s important to first evaluate your finances, as your financial situation is an important factor that will dictate the type of loan you need, and how much you can afford to borrow.
Step One: Evaluating Your Finances
Before you even think about the type of mortgage you should obtain, it’s important to evaluate your financial situation. Check your credit rating and FICO score, evaluate your income and debt level, figure out the size of the down payment you can afford, and determine how much mortgage you can afford and what your credit rating will allow you access to.
When it comes to your credit rating, know that between 620 and 699, you’ll probably pay a higher interest rate than if your credit rating is over 700, due to a slightly higher perceived risk on the part of lenders. If your credit rating is below 620, you may find it’s better to wait and improve your credit rating rather than be forced into a sub-prime mortgage with a high interest rate. Read more...
Posted in Mortgage Loan | No Comments »
Wednesday, May 26th, 2010
There are many different types of mortgages, each with its own advantages and disadvantages, it is very important that you do your research. Understanding these differences will enable you to choose the right mortgage for your financial situation and housing goals. Now what is a mortgage? A mortgage is a loan secured by a property/house and paid in installments over a set period of time. The mortgage secures your promise that the money borrowed will be repaid. For most of us, a mortgage is the largest and most serious financial obligation we ever make.
You can get a mortgage direct from the lender like banks, building societies and specialist mortgage lenders, or you can use a mortgage broker. You can buy based on ‘information’ only or get advice and recommendation on a mortgage that suits your particular needs.
The two main ways to repay your mortgage are ‘repayment’ and ‘interest only’. With a repayment mortgage you make monthly repayments for an agreed period until you’ve paid back the loan and the interest (30 year-fixed rate being a common example). With an interest only mortgage you make monthly repayments for an agreed period but these will only cover the interest on your loan (example 5 year-fixed rate). You’ll normally also have to pay into another savings or investment plan that’ll hopefully pay off the loan at the end of the term. Read more...
Posted in Mortgage Loan | No Comments »
Thursday, January 7th, 2010
Most Americans are aware of the rise of crime in our country. News reports are full of violent acts that have gone on all over the country. Even our children are no longer safe in their schools. Law enforcement budgets have been severely cut back by our government officials just when they should be pouring more money into programs which handle public safety issues.
The national populace can no longer feel safe, even in their own homes. People are also realizing that if they want to keep their homes and families safe, they’re going to have to do something about it themselves. In response to increased demand, companies like American Home Security and ADT are producing home security systems which are being sold through retail markets. It seems that everyone wants a way to maintain both physical and mental safety.
The question is what is the best solution for you? Is it also affordable? Fortunately, there are several different options that are available to you and your family. Lets have a look at some choices and why a company by the name of American Home Security might be able to help you. Read more...
Posted in Home Security | No Comments »
Monday, January 4th, 2010
There are many stresses associated with home buying – both financial and emotional. And frankly speaking, it doesn’t help that the process comes with its very own foreign language. While your mortgage broker can help de-mystify these terms, it helps to have a bit of a primer on what some of these terms mean. After all, it’s your money and your home we’re talking about; as a Mortgagor, you have a right to understand what you’re reading. (You didn’t know you were a mortgagor? Read on…)
We’ll start with Amortization” and “Term”. Both refer to periods of time in the life of your mortgage, and you’ll want to be sure that you understand the difference.
Read more...
Posted in Mortgage Loan | No Comments »
