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Wednesday 6 February 2013

Your Questions Answered about Homes in Need of Repairs and Reverse Mortgages

Posted on 04 September 2012. Tags: reverse mortgage

You have probably seen a lot of advertisements lately about reverse mortgages but are you also aware of the reverse mortgage disadvantages? While this program is indeed helpful to many people you need to make sure that you understand all of the terms and conditions that go with it. If you don’t study them carefully and comprehend them properly there is a chance that you could lose thousands of dollars in the process.
One of the things that you need to know if you’re at all interested in getting a reverse mortgage is how it will work for a home that needs repairs. Do you qualify for this type of mortgage if your home needs some type of fixing up? The good news is that in many cases you will be able to get this type of mortgage even if repairs must be done.
With a traditional type of loan you would a responsible for getting any repairs done before being accepted for the loan. With a reverse mortgage loan, however, the requirements are more lenient than they are for regular types of loans. This means that you’ll be able to use the proceeds from the loan in order to get the repairs done. For some seniors this means that repairs can be scheduled for the home that otherwise couldn’t be afforded.
If you’re planning on doing any of the repairs yourself you’ll need to make sure that you collect some contractor quotes for the job in order to know how much escrow needs to be held back.
Once you have a contractor’s quote for the job it is wise to add an extra 50% to the amount. This will cover any miscalculations on the part of the contractor for the job and ensure that the work gets done as needed. It would be horrible to plan these repairs and then find out later that a small amount is missing due to an error in the original quote. Anyone that has worked with contractors before knows that these errors can be quite common and upsetting to say the least.
The amount of the quote plus the 50% is held back in escrow and is released once the repairs have been completed. First the contractor is paid his amount owing and then the rest of the money is paid to you if there is any left over.
It is important to note at this point that any problems that could be considered a health or safety concern in the home or on the exterior of it will need to be completed before the reverse mortgage can be put into place. Other common jobs like a leaking roof can be put off until the money from the reverse mortgage is received.
It seems like a good idea but…
One of the reverse mortgage disadvantages is that it all seems like it’s too good to be true. You will be receiving money either in a lump sum payment or as monthly payments and you’ll never have to worry about making another mortgage payment again for the rest of your life. You will be receiving money instead of paying it out and there are no taxes payable on this amount. You’d be able to get your home fixed up the way you want it to be and will be will to continue to enjoy a lifestyle that you are used to.
You may now be thinking, what’s the catch?
That’s the thing. For you as a senior, it may work out to be the one thing that can give you peace of mind financial regarding your retirement. It is your heirs that are going to suffer the consequences. While you may not have any debt to pay off after you have passed on, they will not get the money that you have perhaps spent a lifetime building up in your home.
You’ll have to decide for yourself whether you want to compromise on the estate in order to better your way of life now. You must remember that this is your decision to make and you need to feel good about it. If you really don’t have enough money for retirement to sustain a decent way of life, and you have no other options available to you, it may be the only rational decision you can make.
Despite the reverse mortgage disadvantages there are a lot of good reasons why a senior may want to turn to this type of mortgage. In fact, according to a survey performed by AARP, most seniors that ended up getting a reverse mortgage were happy that they made the decision to get one in the first place. It may be your best option for your retirement and you will have to make the final call on that yourself.

Sunday 3 February 2013

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How Does a Reverse Mortgage Work? Learn The Basics, The Benefits And The Disadvantages

Posted on 20 December 2012.

If you have been wondering, “How does a reverse mortgage work?” you are not alone. There has been a lot of talk recently about these reverse mortgages and whether they are a good idea or not. If you’re looking for the correct information about these mortgages without any hype, sales talk or misinformation, you’ve come to the right place.
What is a reverse mortgage?
A reverse mortgage is the complete opposite of a regular mortgage. With a reverse mortgage, the person borrowing the money receives payments every month from a lender instead of making these payments himself. Even though you are receiving money every month instead of sending it out, it’s still considered a loan.
Eligibility
Not everyone that owns a home is eligible for a reverse mortgage. In order to qualify for one you’ll have to meet the specific requirements.
1. You must be 62 years old or older.
2. All people that have their name appearing on the deed to the house must sign the application.
3. You must be living in the home that is being used to secure this mortgage.
4. The balance on the home needs to be low or it must have been paid off in full. If you’re dealing with a lower balance, it needs to be in an amount that’s low enough for the income from the mortgage to pay it off.
5. These eligibility requirements must be met by all applicants.
Your home’s value
One of the criteria for determining whether your reverse mortgage application will be approved or not is the value of the home and how much is owed on it. Basically it comes down to this. The more value that is in your home and the less you still owe on it, the more likely you are to get approved and the higher your payments will be. Once approval has been granted, you’ll be given the choice for receiving your payments. You can choose to receive the money for the loan in monthly payments, as a line of credit, in a lump sum or as a combination of payments.
The benefits of a reverse mortgage
One of the questions that’s most asked along with, “How does a reverse mortgage work?” is how flexible they are. In other words, how can you spend your money once you have received it? The good news is that there are no limitations set for how this money is used. You have the option of spending the money in the way you best see fit. As long as you continue to reside in the house, you’ll never have to worry about making any more mortgage payments and instead can expect to see money flowing into your bank account on a monthly basis.
The disadvantages of a reverse mortgage
While the loan itself is flexible, you will not have any flexibility as to your choice of residence. You will have to live in the home for as long as the mortgage is continued and if you ever decide to move you’ll have to pay off this reverse mortgage in full. In some cases things can come up in the future that you don’t always plan, and with a reverse mortgage in place you can get stuck. As well, if you should pass on while the mortgage is still due, this amount needs to get paid either by your estate or your heirs. If neither have enough money to pay off the mortgage in full, the lender has the right to foreclose on your property.
Associated costs
There are some associated costs that accompany a reverse mortgage that you should know about. These costs may not be discussed until you’re in the final stages of your mortgage planning and you should definitely know about them ahead of time. The responsibility of paying the insurance and taxes on your house will still be left to you and if you happen to run into any problems paying them, it can be considered a default of your mortgage agreement. In this case, you would have to pay off the full amount right away.
You’ll also need to cover the closing costs for the mortgage. Just like a regular mortgage, a reverse mortgage has closing costs as well that need to be paid before the mortgage goes into effect.
There may be other associated costs and the only way to know exactly what they are and how much they will cost you is to go through all of the fine print on a reverse mortgage agreement before signing it. As well, for the small amount that it will cost, it would be a good idea to get a lawyer to look through the paperwork before setting pen to paper. This way you will be able to ask a qualified professional, “How does a reverse mortgage work?” yourself and find out all the details for the specific mortgage that you are planning on taking on. This way you’ll be able to sign the paperwork with confidence knowing that your best interests have been kept in mind.

How Does a Reverse Mortgage Work? Learn More about the Myths and Misconceptions about Reverse Mortgages

Posted on 23 December 2012.

When you’re trying to understand how does a reverse mortgage work you’ll have quite a few questions to ask. One thing that can become quite a problem is the amount of information that is being spread about these types of mortgages that simply is not true. Since reverse mortgages are becoming more and more popular these days as seniors are looking for a way to fund their retirement, the myths and misconceptions are spreading like wildfire. In order to put these to rest please look through this information to find out the truth about reverse mortgages and how they work.
Myth #1 The mortgage must be paid back every month
A reverse mortgage is a completely different type of mortgage and there is no repayment that needs to be made every month. In fact, this loan only needs to be repaid once it is due, which usually occurs when the homeowner moves out of the home or passes on. While the loan is still outstanding, however, the interest will still accumulate.
Myth #2 The homeowner must turn over the title to the lender
This is probably the biggest misconception and myth about reverse mortgages that is being passed around. Since a reverse mortgage is still considered to be a loan, the borrower keeps the title to the home. The lender does not own the home in any way at all.
Myth #3 You aren’t allowed to sell your home
You can sell your home as long as you are going to be making more in the sale than the amount that you owe to the lender. As well, any of the extra money will go to you as the homeowner and the lender does not receive a penny of it. A home loan still needs to be considered as a variation of a regular home loan so that you can fully understand that you continue to hold the title on it.
Myth #4 There cannot be a balance owing on the home
You do not have to own the home clear and free in order to be eligible for a reverse mortgage. In understanding how does a reverse mortgage work, this is in fact the first thing that you’ll need to comprehend. If you owe money on your home you can still be eligible for a reverse mortgage. Qualifying will depend on how much of the balance is left owing.
If you do qualify for this mortgage you can opt for a lump sum or line of credit as your payment option. The balance owed on the original mortgage is paid off with the money payment and then the rest is yours to keep and use as you see fit. There will be no more repayments needed on your original mortgage since the entire amount will have been paid off in full.
Myth #5 My heirs will end up with a huge debt
This is not true. A reverse mortgage carries mortgage insurance so that if the homeowner that is borrowing the money ends up owing more than the value of the home, the lender is only able to get back the home’s value. This means that your heirs cannot owe more than the value of the house. As well, if there is still equity in the house, the estate gets this equity once the home is sold.
Myth#6 I need to have a high income
Your income level will not be any type of determining factor when you are applying for this mortgage type. You can have any level of income and still qualify.
Myth#7 I need to have good credit to qualify
Again, this is a false statement. In most cases your credit standing will not be a factor in administering the loan or not. The only thing that may affect the reverse mortgage is an IRS tax lien or something else that would affect the title of the home.
Myth#8 I can only use the money for certain things
One of the first things to learn when understanding how does a reverse mortgage work is that you can use the money for anything you want. You can fix up your house, take a long vacation, buy a new car or even burn the money if you want. The money is yours and you have the right to do anything that you want with it and will not have to account for the spending of it in any way at all.
These are the most important myths that need to be cleared up when you’re learning how does a reverse mortgage work. The truth is that reverse mortgages are perfect for some seniors and not so great for others. Gather together all the information that you possibly can so that you are able to make an informed decision with confidence knowing that this is the right solution for you.
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The Beginner’s Guide to Stock Market Trading

Posted on 26 December 2012.

When you’re wondering how to get started in the stock market you’ll have quite a few questions that you’ll need answered. The stock market can be quite a complex and challenging thing to understand completely but as you go along it’ll start to make more sense. In order to help you get a firm grasp of this game called the stock market here’s a quick beginner’s guide that you can use when you’re first getting started.
Understanding stocks
Stocks give you a share in a company, which means that you are a part owner of it. Stock, equity and shares all basically mean the same thing since they are all representative of a claim on the earnings and the assets of the company.
As part owner of the company you are also given certain rights and privileges. You’ll have a partial claim to the holdings of the company and can be a part of the decision-making process for its future. Here are just a few of the rights you have when you own a piece of stock in the business.
•   You have the right to have a copy of the profit and loss statements and the annual report.
•   You will receive share certificates.
•   You have the right to receive any approved dividends.
•   You can inspect the company’s registers.
•   You may receive dividends, bonuses and other corporate benefits.
•   You are given the right to vote in the companies yearly general meeting.
Once you have bought a stock you’ll receive a stock certificate. It wasn’t too long ago when you would receive physical certificate that you could add to a real leather portfolio. Nowadays, with a new age of technology upon us, these certificates can be held in electronic form. They are much easier to trade this way since physical goods do not have to change hands at all.
Back when, if you wanted to do any trading you’d have to head down to your broker’s office and physically hand him the certificates. Now everything can be done either by phone or through the Internet, which is a lot better for you. It makes the stock market game much easier especially when you’re first learning how to get started in the market.
Understanding the different types of stock
Here’s a general rundown of the different types of stocks available so that you can identify them easily.
Preferred stock
When you own this type of stock you’ll be given a priority when it comes to the placement of the company dividends. Both institutions and individuals are able to purchase these types of stocks.
Common stock
These are stock shares, which means that the person buying them gets a certain amount of the company earning’s growth and dividends. The stockholder is also given voting rights in the company.
Unlisted stock
These stocks cannot be found in the stock exchange listings. They are usually bought and sold in the secondary market and can either be preferred or common stocks.
It’s important to understand these different types of stocks because you’re going to hear a lot about them in the future. In most cases people that are just getting their feet wet in the stock market are going to be purchasing common stocks first and then branch out into unlisted or preferred stocks. There are advantages to these unlisted and preferred type of stocks and you will learn about the benefits of each more as you get more involved with the market.
There is nothing wrong with purchasing common stocks and a lot of people just stick to them throughout their trading career. A lot of millionaires have been made on this type of stock and in some cases it’s a better buy. It all depends on the company that you’re looking at, it’s assets and its future potential. If you’re thinking of taking a risk on a company you’d be better off starting with a common stock purchase until you see further growth in the business.
Your broker can also make suggestions about the type of stock that you should be purchasing and it’s recommended that you take his advice when you’re first getting started. You’ll want to sign up with a reputable broker that you can trust that will be able to handle all of your activities on the market.
As well, you’re going to want to do some studying on your own about the stock market so that you can really get the hang of it. Nowadays the best place to look for a stock market education is on the Internet. There are literally thousands of different courses, books, classes and all sorts of training materials that you can get your hands on easily. When you need to know how to get started in the stock market learn about the different types of stocks and continue your education so that you can make your investments pay off for you in the future.
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How Stock Market Games Can Help

Posted on 25 December 2012.

If you’re wondering how to get started in the stock market the first thing to look at are stock market games on the Internet. These are games that will show you how to work the stock market without actually putting any money into it. It’s like a practice run and you’ll get to enjoy the feel of the market without risking any money.
Stock market games are also commonly known as virtual trading. You will be given real data to use to make decisions as to which types of stocks you’d like to invest in. As you play along you’ll be able to watch these stocks fall or rise as the market fluctuates. You’ll be investing and trading with virtual money only so you really won’t have to worry about losing your shirt when you first get started.
You’ll have to open a trading account first in order to have access to this game and your virtual money. You’ll be using this money just like stockbrokers and investors do on a regular basis. You will virtually lose money and profit as well as the market changes. You’ll be able to find out exactly where your strengths and your weaknesses lie when it comes to the Stock market game. Then, you’ll be able to take this knowledge and apply it in real life to your stock market hobby.
Why is virtual trading so important?
Beginners at the game will be able to try their hand at all different types of investing. You’ll be making mistakes along the way but you won’t be losing money as you make them. You’ll be able to take a few chances as you progress and learn through valuable experience. There is nothing better than learning how to trade without having to worry about money loss. You’ll learn a lot more than you would by risking your own money and potentially losing it right away.
Who can open a virtual trading account?
You’ll have to look for a broker that works with new customers by offering them virtual stock. Anyone that is of age can start with this stock market game and for those wondering how to get started in the stock market it is the best way possible.
Playing the stock market game gives you a stress-free reality on the stock market that allows you to make choices without fear. It will give you the chance to build up your own sense of direction in the stock market and learn the best times to buy stocks and when they should be sold.
A lot of people experience great success by playing these games and then are able to step into the stock market world a lot better prepared. Of course, some critical thinking processes are going to have to change since real money is going to be put on the line to make trades. It won’t be as easy to take the chances that were taken in the games themselves since the money will be limited. You’ll have to learn how to make decisions when you’re using real money but these choices can be made based on the experience you have built up through virtual trading.
One of the best things about the stock market games is that they are fun to play. You can feel like a real-life stockbroker and they can really get quite addicting. It’s a lot better playing these games than it is to spend countless hours playing a mindless videogame that really won’t give you any experience that you can use in real life. These games, while fun, will get you prepared for the real world of stock trading.
Anyone that’s interested in the stock market needs to play these games first before getting started with any trades and investments. The experience is incredible and you won’t mind at all the time spent learning about the market. Playing is fun – especially when you know that it’s going to lead to something useful.
There have been many studies that have shown that playing a game is one of the best ways to learn something. You’ll be able to understand what you’re doing and will get a full grasp on most of the stock market terms that you’ve never heard of before. This is a hands-on approach to learning that will give you exactly what you need to step forward in the stock market world.
If you’ve been wondering how to get started in the stock market now you have a direction to take. Find a broker that will give you the chance to play stock market games with virtual money, sign up to play and then get started. Don’t worry about learning everything you need to know first, it will come in time. The important thing is to start playing to gain the important information that you need to begin playing the real stock market game

Thursday 31 January 2013

mortgage and home finance

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Learn About Reverse Mortgage Disadvantages Before Signing On The Dotted Line July 2, 2012
How Does a Reverse Mortgage Work? Learn The Basics, The Benefits And The Disadvantages December 20, 2012
How Does a Reverse Mortgage Work? How to Choose the Right Payment Option December 21, 2012
How Does a Reverse Mortgage Work? Is It Worth The Risk? December 22, 2012
How Does a Reverse Mortgage Work? Learn More about the Myths and Misconceptions about Reverse Mortgages December 23, 2012

Learn About Reverse Mortgage Disadvantages Before Signing On The Dotted Line July 2, 2012
How Does a Reverse Mortgage Work? Learn The Basics, The Benefits And The Disadvantages December 20, 2012
How Does a Reverse Mortgage Work? How to Choose the Right Payment Option December 21, 2012
How Does a Reverse Mortgage Work? Is It Worth The Risk? December 22, 2012
How Does a Reverse Mortgage Work? Learn More about the Myths and Misconceptions about Reverse Mortgages December 23, 2012