What is a Reverse Mortgage and How Does It Work?

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If you've recently considered your options for taking some of the equity out of your home you may have heard about reverse mortgage loans. If you meet the requirements for a reverse mortgage it can be an excellent way to tap into the value of your home, freeing up that cash to be reinvested or used for other purposes. In today's blog post we'll explore reverse mortgage loans, explaining how they work and whether or not you're qualified to receive one. How Does a Reverse Mortgage Work? As the name implies, a reverse mortgage is the opposite of a traditional…
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Understanding the Principal Limit on a Reverse Mortgage and What Happens if You Reach It

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If you're considering applying for a reverse mortgage, you'll want to ensure you understand certain critical factors. One such factor is the principal limit. The principal limit will have a strong influence on your finances, which is why you'll need to ensure you know – before applying for your reverse mortgage – what your principal limit is. So how does a principal limit work, and how can you find out what yours is? Here's what you need to know. Principal Limit: The Maximum Amount You Can Borrow Simply put, the principal limit is the maximum amount of money that you…
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The Quick and Easy Guide to Understanding the Math Behind Your Mortgage Closing Costs

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It's amazing that in a year with extremely low mortgage rates being reported around the country, closing costs are up by as much as 6% from the previous year. Part of the reason for this is that the stricter regulations on loans have increased the costs to banks, and they always find a way to pass on new costs to the consumer. Understanding Third-Party Closing Costs When closing on a mortgage the borrower will notice a long list of additional fees that they are expected to pay for. These can range from insignificant into the thousands of dollars depending on…
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3 Reasons You Should Trust in a Mortgage Advisor Instead of Trying to Predict Rates

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If the time has come to purchase a home and you've been perusing the real estate market, it's possible you've also been considering the mortgage options that might work best for you. In the event that you're already spending a lot of time looking at homes and trying to sell your own, here are a few reasons you may want to leave your mortgage considerations to a professional. Qualifications You Can Count On If you're new to the world of home purchasing and have concerns about learning the ropes on your own, a mortgage advisor can be a great way…
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How Much Should You Budget for Closing Costs? Let’s Take a Look

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If you're in the market for a new home, you're probably trying to budget for all of the expenses that come with a home purchase. After all, the asking price isn't necessarily the entire amount that you'll pay - there are other expenses that will factor in to the final price. One such expense is your closing costs. Closing costs are the miscellaneous fees you'll pay when you sign the deal to buy your home. But how much do you need to save up for closing costs? Here's what you need to know. The General Guideline for What to Expect…
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FHA Streamline Refinance Mortgage Loan Program

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Refinancing a home loan can provide numerous benefits, but it can also seem daunting and intimidating to some. Many homeowners would love to lower their interest rate or take advantage of other benefits associated with refinancing, but they are concerned about the time and expense associated with refinancing their current mortgage. The FHA Streamline Refinance loan program is designed to provide those who currently have an FHA loan with an easier way to refinance their mortgage, and this may be a desirable option for many. No Appraisal Needed One common complaint that people have when applying for refinancing relates to…
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Saving Up for Your Down Payment? Try These Money-saving Tips to Speed Things Up

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One of the most significant challenges that many people face when preparing to buy a first home relates to saving money for a down payment. While there are many different loan programs with varying down payment requirements, the fact is that it can still be difficult to save up a large sum of money. Some programs may require you to save as much as 10 percent or 20 percent of the sales price of the home. You can employ a few different tips and techniques to save money for a down payment more quickly, and these are some of the…
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How to Calculate Your True Cost of Living and Determine How Much Mortgage You Can Afford

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A monthly mortgage can seem like enough of a financial responsibility on its own, but there are many factors involved in home ownership that affect its fiscal feasibility. If you're in the market for a house and are wondering how your income will stack up against the rest of your expenses, here's how to determine a home cost that's reasonable for you. Determine Your Down Payment Before you start with anything else, you'll want to determine the amount of money you can put down so you can estimate your monthly payments. The traditional amount for a down payment is 20%…
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Three Tips to Ensure That a Reverse Mortgage Makes Sense for Your Financial Situation

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If you're having financial troubles, or if you need to free up a large sum in a short period of time, a reverse mortgage is a great way to get the money you need without having to take on new debt or make monthly payments. When you apply for a reverse mortgage - also known as a home equity conversion mortgage - you're essentially borrowing money from the equity you've built up in your house. The great advantages of a reverse mortgage are that you don't need to make any loan payments until you decide to move out of the…
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Setting the Record Straight: 3 Major Misconceptions About Mortgage Financing

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Purchasing a home is often considered an important step in one's financial life, no matter what point you arrive at it, but there are things you should know about financing your home purchase before stepping into the fray. If you're planning on buying a home soon and want to avoid some major missteps, here are a few tips that will set you up for success. Taking The Lender You're Offered In the event that you've been pre-qualified for a certain amount, you'll want to find a lender that will make the process towards a home purchase a little bit smoother.…
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