Selasa, 16 Desember 2014

A Reverse Mortgage Can Make Your Retirement Easier

A Reverse Mortgage Can Make Your Retirement Easier-If you own your home, are 62 years old and have a lot of equity in your home you can easily qualify for a reverse mortgage. Retirement can be tough financially, you can find yourself trying to live on a lot less money than when you were working. If this is your situation then talk to your bank about converting the equity in your home into cash.

You will no longer have to make payments to the bank or mortgage company, they will make payments to you. If that is the way you have set it up. You have the choice of taking the money in one lump sum, as a line of credit, or receiving monthly payments. Make your retirement everything you thought it could be and talk to your lender about a reverse mortgage. You can also choose to receive monthly payments and have an amount set aside as a line of credit to use for the upkeep of the home.

The difference between this and a traditional mortgage is the loan does need to be repaid until you, as the homeowner, do not live in the home anymore. You can use the money for anything you want or need. There are no income limits to be eligible and like I said all you need to qualify is to be 62 and have plenty of equity in your home.

Other requirements are you must continue to live in the home as your primary residence. The money can be used to pay off the original mortgage if there are any payments left to be made. You, the homeowner, must keep taxes and insurance on the home and do normal upkeep of the home.

Your single family home is not the only type of home that can qualify for this type of loan. If you live in a multiple unit dwelling and live in one of the units this can qualify, too. Manufactured homes and approved condos can also qualify as long as they meet FHA and HUD requirements.

The loan will come with fees like origination fees and closing costs so it would be to your benefit to shop around for the best rates to keep as much money in your pocket as possible. Only when you sell your home or can no longer live in it will the loan have to be repaid. You will also have to repay the interest that has accrued. If there is any equity remaining after the repayment of the loan that money goes to you or your heirs in the case of your death.

The amount of a reverse mortgage depends on how old you are and the current interest rates. To arrive at a fair number your house is appraised and that appraisal is then compared to the FHA mortgage limits in your county and the amount you are able to borrow is the lesser of the two. As your age increases so does the amount of cash you qualify for.

 

A Jumbo Mortgage For A Higher Priced Home

A Jumbo Mortgage For A Higher Priced Home-A jumbo mortgage is simply a very large mortgage just like its name implies. More specifically, a jumbo mortgage is a mortgage where the amount that is financed is more than the amount that has been set by GSE or Government Sponsored Enterprises who sets the guidelines for jumbo loans. GSE is a group of financial companies that maintains access to housing loans and reduces the cost of the loans so that consumers can buy homes. The traditional guideline amount that has been set for a mortgage by GSE  has been $600,000.00 because this is the amount that GSE has set as part of their duties.

If a mortgage is larger than this amount then it receives the class of being a jumbo mortgage. Since we know that there are many homes that cost more than that amount, then we should know that the need for a jumbo loan has increased because home prices have increased as much as there are homes that are available. Many lenders will offer jumbo loans, however some lenders do not. A jumbo mortgage will carry more of a risk for a lender because the mortgage payments tend to be quite high and no matter how well your financial situation,something could go wrong.

Also higher priced homes can take a lot longer to sell than a lower priced home because not as many people can afford these homes, so if the home owner should have financial problems it could take awhile to get out of the mortgage loan and a default on the loan could occur. Many lenders will require a larger down payment on a jumbo mortgage as a result of the higher priced homes and the chance of financial issues.

Interest rates will be higher for a mortgage that goes above the GSE's maximum guideline mount. With traditional mortgages a homebuyer may be able to purchase a home for little or no money down,however  this is not so with a jumbo mortgage because of the inherent risk to the mortgage lender.. These larger loans will require some money down, however the process for getting a jumbo loan is very similar to a traditional loan for a lower priced home. If you have found a home that has been hit by higher home prices, don't give up hope because there is probably a jumbo mortgage available for you if your credit is good and you have the ability to repay the mortgage loan.

On the other hand, be prepared for the loan to cost a little more than a smaller mortgage, not just with the amount borrowed but also to borrow the money. So if you see a home that you want and you know you can afford it, don’t be turned off by the price because there is a solution to help you buy your dream home.

6 Identity Theft Solutions

6 Identity Theft Solutions-It's unbelievably frustrating, here you are going about your business, being a productive member of society, caring for your family and some lazy thief is trying hard to steal your identity and all you've worked so hard for. The good news is that there are identity theft solutions so you can work to stop the thieves in their tracks.

1. Many people used to think it was a sign of pride that their wallet was brimming over with credit cards, the more gold or platinum cards the better. Today, though, we know that more isn't merrier. It's a real risk to carry your cards with you so you will be doing yourself a favor by only carrying what you absolutely need.

I don't even carry my cards on a day to day basis, I only put one in my wallet when I know I'm going shopping, that's good identity theft solutions.

2. Keep careful tabs on your credit report. By law you are entitled to one free report from each of the credit bureaus every year. If you divide that up to one a quarter you can keep a good eye on your credit report.

Of course, if you find anything that looks off, make sure to call the credit bureau right away. I have a friend who just got a bill from a company he has never dealt with before. He contacted the company right away since he suspected someone had used his identity.

3. More and more people are realizing that it's foolish to sign the back of a credit card. Sure, it says that we should but think about it for a minute: if a thief wants to forge your signature, aren't you making it easier for them by writing it out.

Instead of signing your cards write "See photo ID" or something similar on the back of the card. That is much better protection for you than signing your name.

4. Only use one card for purchases made online. Even better, use an online payment source like Paypal. Instead of having several of your credit card numbers floating around in cyber space you can greatly limit your exposure by using only one card or relying on Paypal.

5. Make sure you get your mail as soon after it's delivered as possible. Leaving mail in your mail box can be an invitation to thieves to steal it and use that information to steal your identity.

6. Make sure that you also look over your bank statements and credit card statements every month. This is the best way to spot a problem quickly. If you see anything that looks off contact the bank or credit card company right away.

These are just a few of the possible identity theft solutions. It's important that we all do as much as we can to protect our identity, not just for ourselves but for each other as well. Whenever someone makes a fraudulent purchase we all pay, don't think for a minute that the banks and credit card companies are going to absorb those loses, they will just pass them on to us in higher fees.

5 Things To Consider Before You Buy Insurance

5 Things To Consider Before You Buy Insurance-If you've been putting off your plans to buy insurance, it's important to think about a few things before you sign your policy. While insurance can be an important way to protect you and your family against unforeseen circumstances, it matters that the policies you choose are right for your specific needs.

Budget

Looking for policies based on price alone might sound as though it's a good idea for your financial budget, but you should always check that the insurance policy you're paying for will give you the inclusions you think you're getting.

Some insurance companies may reduce the amount of cover you'll receive in order to keep the prices down. You may find there are exclusions on your coverage. While the price you pay is important, always be sure you're covered for the things you really want.

Inclusions and Exclusions

Many insurance companies write their policies in difficult-to-understand language that can be hard for some people to follow. If you're not sure what's included in your policy, ask a representative to clarify this for you. Ask plenty of questions and understand exactly what you're getting – and what you're not.

If you're not happy with the answers you receive, continue to ask questions until you can work out whether your policy is offering you the right amount of cover for what you need. You may just learn that you need to fine-tune your insurance to either add or remove some aspects that could suit you better.

Right Amount of Insurance

A surprisingly large number of people are under-insured for what they really need to protect themselves. Look closely at the level of coverage you need before you buy insurance and make sure it will be adequate for what you really need.

Unfortunately, there are also people who are over-insured, which means they could be paying far more on their premium amounts than they really need to.

Premiums

Some insurance companies will raise the premiums you pay simply based on your medical history and physical health. You will need to be honest on your application form when you buy insurance, or you risk having your insurance voided, so be sure to disclose your medical history and answer any questions about your lifestyle truthfully.

For example, smokers may pay more in health insurance premiums than non-smokers. You might also find that overweight people could be charged slightly higher premiums too, as will people in jobs considered to be high risk.

For auto insurance, your choice of car can affect the amount you pay on premiums, while income protection insurance premiums can be affected by your choice of employment.

Consider Carefully

Before you buy insurance, always take the time to understand what you're paying for and how various aspects of the policy can affect your premiums and coverage levels. There's no point paying for more insurance cover than you really need, but likewise, you need to be sure you have enough cover to protect you in the event of something happening.

4 Top Tips On Credit Card Consolidation

4 Top Tips On Credit Card Consolidation-Credit card debt isn't any fun, and the more you have the worse it is. One method a lot of people turn to is consolidation. This is where you combine all of your debts into a single debt, with a single payment. This single payment can be significantly lower than the total amount you were previously paying. However, credit card consolidation isn't right for everybody, and there are a few things you should know. With that in mind here are some tips to help you consolidate more effectively.

Tip #1: Read any terms of service carefully, and be sure that you understand them. This tip applies to those who will consolidate by themselves through moving higher interest balances to a single card or two with lower interest rates.

You need to know if there are any fees for balance transfers, how long the lower rate will last, how much of the transferred balance falls under the low rate, and so on. All of these things can have a major impact on how much you pay, and the goal is to pay less, not more.

Tip #2: Check into any credit counseling agency or debt consolidation company you are thinking of using. In a perfect world you would be able to trust all companies that offer such services, but the reality is that some of them are only after your money, and won't do anything but make your credit situation worse.   

These types of companies advertise heavily on television, radio and the internet, but that doesn't automatically mean you can trust them. Look for unbiased reviews and check with the Better Business Bureau to see if there are any consumer complaints.

Tip #3: After you have consolidated all of your credit cards, do not use them. Remember, you will be reducing your overall expense, and this can give you the illusion of having more money to spend. But that isn't the case. You need to stop adding to your debt, and do whatever you can to pay off your consolidated card.

If you find you are in a true emergency situation after you've started credit card consolidation, then (and only then) charge that emergency expense to the card that is carrying the balance of what you owe. You should never start charging on the cards that have a new zero balance, as it will only lead to trouble.

Tip #4: No matter what company you go with, and whether you do it yourself or not, you have to read all of the terms of the agreement. This can't be overstressed. Don't go by what somebody tells you face to face. What counts is what the paper you are signing says. In legal matters, a written contract holds more weight than a verbal one.

The other reason terms are so important is that they will let you calculate how much you will have to pay. This is the only way you can accurately compare which credit card consolidation offer is the best one for you and your situation.

4 Steps To Consumer Debt Reduction

4 Steps To Consumer Debt Reduction-Let's face it, the economy is not as strong as it could be, and while it's struggling along, more and more people are finding themselves getting deeper and deeper into debt. The sad thing is that, most likely, none of this debt is your fault. After all, you need a place to live and food to eat, but circumstances beyond your control have now left you owing more money than you can pay back. However, consumer debt reduction may just be the silver lining you've been looking for.

Of course, there is more than one way to reduce your debt. Which one you choose will depend on your personality, as well as your current situation. That being said, here are some things you can do--whichever method you decide to use--to get yourself off to a strong start.

1. Know exactly where you are. It's time for a gut check. You need to write down all of your debts, interest rates, household expenses, and any other money that is being spent. Be specific, and account for every single cent. Be sure to write down all of your income, and remember to list any liquid assets you may have that you can apply toward lowering your debt.

2. Set your priorities. You need a roof over your head, water, and food to eat, so those things should be your highest priority. Utilities and medication will also be near the top of the list for a lot of people. Next is a vehicle, especially if you live in the country, or have no other way of getting to work.

Does this mean you should give up all of the little "treats" in your life? Not necessarily, but you need to make sure the necessities are taken care of first. After that, you can start deciding which things are more important. Because we are talking about consumer debt reduction, it makes sense that the less necessary items should be the first to go. For example, do you really need the full satellite television package, or could you live with basic TV for a few months if it meant you could get out of debt?

3. Reduce the amount you owe. Yes, you will be chipping away at your debt with each payment you make, but we're talking about reducing it all at once. The way you do that is by talking to each of your creditors. They may be able to forgive late fees, lower interest rates, or remove other arbitrary penalties. If they won't do any of that, then you can always consider getting a debt consolidation loan which will have the same effect.

4. Increase how much you pay. The more you can pay toward your debt, the quicker it will be paid off. Now that may sound obvious, but the reason this is so important is that it negates the effect of compound interest. Depending on how much you owe, and the current interest rate, paying double the minimum payment could allow you to pay of your debt eight times faster! How's that for consumer debt reduction in action?

3 Tips On Debt Consolidation Loans For People With Bad Credit

3 Tips On Debt Consolidation Loans For People With Bad Credit-Okay, so we know the economy could be better, and we also know that a lot of people are hurting financially. The sad part is that a lot of people are getting deeper and deeper into debt due to no fault of their own. Just because there are debt consolidation loans for people with bad credit doesn't mean the people who need them are bad.

Digging your way out of debt isn't easy, and it can often seem hopeless, but realize that you can get out no matter how bad you may think things are right now. As you will see, there is some good news that you can use to improve your current financial situation.

1. It is only a myth that there are no debt consolidation loans for people with bad credit. In fact, with the state of today's economy there are more and more lenders offering this type of loan. It's a sign of the times.

It used to be that you had to have good credit to get a loan, but when it comes to debt consolidation, the requirements are becoming less strict. Even so, a better credit score will tend to give you more favorable terms for a consolidation loan. This is largely a function of the market. After all, lenders only make money when they lend, so if more people are a bit more risky because of a bad economy, they have to cater to them if they want to stay in business.

2. No matter how bad your situation, there is absolutely no reason for anybody to treat you as if you are inferior to them. Refuse to be intimidated. Some lenders will try to bully you. If that happens, go somewhere else. Other lenders may act like you are working for them, but in reality, you are the one with the upper hand. If you start feeling intimidated, just remember this: the loan officer could just as easily end up in the same situation you are in, or they could be going through it right now. Keeping that thought in mind will give you a better mindset during the negotiations.


3. There is much more competition for your loan than you may realize. There is nothing stopping you from checking out other lenders, in fact, it's a smart idea to do so. It's your money and your life, you get to decide what's best for you. Some lenders will try to force you to sign on the dotted line right away.

However, you can brush off their high pressure sales tactics because you know they are not the only ones offering debt consolidation loans for people with bad credit. The problem with being pressured is that it keeps you from making good decisions. The more pressure you feel, the more you need to slow the process down.