Welcome to Mortgage Guide
Interest Only Mortgage Article
. For a permanent link or to bookmark this article for further reading, click here.
Reverse Mortgage Basics
Loan & Credit FactsMany consumers can benefit from an introduction to the reverse mortgage. This advance is a type of loan that allows a homeowner to borrow from their home’s value. The reverse mortgage has many interesting aspects to it for some homeowners to consider.
The borrower does not have to pay back any of the money that he uses in the course of the reverse mortgage. The package is designed for retired homeowners who need money but do not want to sell their current residence. Instead of selling, the customer simply borrows money against the value of the home.
The debt is to be repaid when the home is sold or in the event of the borrower’s death. Many elderly clients can benefit from this type of advance because they do not have to worry about repaying the debt. The money owed is simply taken out of the sale price when the home is sold.
But what if the borrower dies? The individual that inherits the home also inherits the debt. This is typically little trouble considering that the value of the home should greatly exceed the cost of paying off the debt. The loan company will work with the person that inherits the property to work out a viable agreement.
There is little risk of owing more than the home is worth. The lender accounts for the initial mortgage amount and the lender figures in the interest rate. The length of the loan and the home’s appreciation are also factored into the agreement. The amount of the money lent will not exceed the value of the home through the term of the loan.
Basic Requirements For Reverse Mortgage
A person will be typically unable to get a reverse mortgage if there is a lien on the property. In some cases, the borrower can use money that he receives in the loan to pay off any liens against the house. The lender will require that the lien be paid in full before making an agreement or the consumer will be required to pay the lien using monies from the loan.
The amount of the loan depends on a few factors. The home should be appraised and any necessary repairs must be made. The property’s location is another important component in the lending process. Well sought-after properties will yield more worth.
The interest rate will have an effect on the monthly installment and the overall cost of the loan. The borrower’s age is also a consideration. The reverse mortgage is designed for senior citizens. The older the borrower is, the more money he can receive through the loan.
The consumer has a few choices when it comes to the distribution of funds. He can opt for a lump sum, monthly installments or a line of credit through the reverse mortgage.
Interest Only Mortgage Specific links
Interest Only Mortgage News
FSA: MMR will not ban interest-only mortgages - FT Adviser
 Mortgage Introducer | FSA: MMR will not ban interest-only mortgages FT Adviser By Donia O'Loughlin | Published 07:42 | comments The Financial Services Authority has said it has no intention of banning interest-only mortgage products as part of the Mortgage Market Review, despite calls from major lenders that it should do so, ... FSA denies interest-only ban Interest-only mortgages won't be banned Interest-only should be broker niche |
New Callcredit white paper explores the interest only mortgage 'timebomb' - Creditman
New Callcredit white paper explores the interest only mortgage 'timebomb' Creditman Lenders should take proactive steps to engage with borrowers who are facing an interest-only mortgage 'timebomb', according to a new white paper from Callcredit Information Group. The white paper – Interest Only Residential Mortgages: What happens when ... |
Mortgage Closing Overcharge Suits Curbed by High Court - Bloomberg
 KIMA CBS 29 | Mortgage Closing Overcharge Suits Curbed by High Court Bloomberg The US Supreme Court limited the ability of home buyers to sue mortgage lenders for overcharges at settlement in a victory for the real-estate and banking industries. The justices unanimously threw out a suit by a group of Louisiana consumers against ... Supreme Court says families cannot sue mortgage company over loan discount fee US High Court Bars Louisiana Fee Suits Against Quicken Loans Supreme Court bars Louisiana fee suits against Quicken Loans |
American Capital Mortgage Investment Corp. Announces Pricing of Public ... - MarketWatch (press release)
American Capital Mortgage Investment Corp. Announces Pricing of Public ... MarketWatch (press release) BETHESDA, Md., May 24, 2012 /PRNewswire via COMTEX/ -- American Capital Mortgage Investment Corp. (NASDAQ:MTGE) ("MTGE" or the "Company") announced today that it priced a public offering of 11000000 shares of common stock for total expected gross ... American Capital Mortgage Investment Corp. Announces Public Offering of Common ... 5 12% Plus Dividend Paying Stocks To Buy Today |
US 30-year mortgage rate falls to record 3.78 pct. - Sacramento Bee
 CBS Moneywatch | US 30-year mortgage rate falls to record 3.78 pct. Sacramento Bee Responding to the comment will only encourage bad behavior. • Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child ... Fixed mortgage rates hover at record lows |