Sam in Reverse

A reverse mortgage is a type of home mortgage that allows seniors who own their home to access the equity in their home. Instead of making payments to a lender, the homeowner receives payments from a lender. This can be through a lump sum, monthly payments to the homeowner, as a line of credit, or a combination of the three. What are some benefits of a reverse mortgage? Access to Cash A major benefit of a reverse mortgage is access to cash. Senior citizens who live on a fixed income may find that a reverse mortgage is an excellent way to come up with money to help their budget. For example, a senior who is retired and living on a fixed income may find it difficult to make ends meet, but a reverse mortgage allows them to draw off of the equity in their home to meet their budget.

If you're shopping for a mortgage, you're probably hoping to get the best interest rate possible. Getting the best mortgage interest rate requires a little bit of work on your part. Check out these tips for negotiating a lower rate for your mortgage interest. Do Some Shopping You wouldn't settle on the first price thrown at you for a car would you? Don't settle on the first mortgage rate you are given. Shop around for quotes from other banks and credit unions. You might even want to contact a mortgage broker for a quote. Once you have these in hand, you are in a better position to negotiate to get the best rate possible. Know Your Stuff Don't approach a mortgage without knowing what you're doing.

Would you really let a stranger walk into your home? If your home is for sale, then you certainly would. Showing your home to potential buyers and staying safe while doing so means taking a few extra precautions and keeping safety in mind at all times.  Check out these tips for safely showing your home. Never Go It Alone You should always have someone with you when you show your home. Never allow strangers into your home when you are by yourself. Ask a friend or family member to come and be your backup when you are allowing a potential buyer to see your home. Not only does this provided added safety, but the other person can also serve as an extra set of eyes and ears in case there are any issues.

A mortgage calculator is a valuable tool that can help you make an important decision about your living arrangements. Will you buy? Will you continue to rent? Will you be able to afford to move or do you need to stay where you are at? Is it time to re-finance? A mortgage calculator can help you figure out the answers to all of these questions. The calculator allows you to figure out borrowing at different interest rates over different time periods in order to determine a payment and loan that fits your budget. What The Calculator Will Provide You can easily find excellent mortgage calculators for free online if you look around. The numbers you plug into the calculator will provide you with information about an expected monthly payment, interest totals over the length of your loan, insurance for taxes and mortgage, and a loan payoff date as well as the total amount of tax for the entire length of the loan.

The mortgage game has been tighter since the Great Recession hit in 2008. Banks are skittish about lending, even though recent months have seen improvements in the overall financial picture. Typically, Fannie Mae and Freddie Mac have offered home mortgages to borrowers who may not meet qualifications at traditional banks. In the past, banks would repurchase those loans, but now, lenders are hesitant to take a chance on loans and borrowers that don't meet their standards.

You've been working to improve your credit score before you apply for that home mortgage. That's a good thing, but there's still a few things you need to do. Two months before you plan to apply for a home loan, do (or don't do) these three things: Pay Down Your Credit Card Debts

If you are hoping to get an approved mortgage for that home you are dreaming about, but your credit needs a little work, there are a few options you have. Working to improve your credit score before you apply for that mortgage means preparation and time. Here are a few tips to help you. In the six months prior to applying for a mortgage, plan to do (or not do) these three things: Check Your Credit Report Get a copy of your credit report and look it over thoroughly. Check it for errors and if you find any, work to get those mistakes fixed.

The country's fourth largest home loan servicer, Ocwen Financial Corp., is under fire for backdating foreclosure letters and other home loan correspondence, making appeals by borrowers almost impossible. Mortgage borrowers who were struggling to keep up their payments were denied the opportunity to rectify the problems with their loans and avoid foreclosure, according to an investigation by the New York State Department of Financial Services. The Atlanta-based Ocwen insists that the backdating was a result of software errors, but officials purport that the act occurred because of a broader problem: A corporate culture that disregards the needs of borrowers in order to pursue monetary gain.

When you buy a home, you aren't just acquiring a house: You are acquiring a new neighborhood too. As you check out a home, it's important to remember to take a good look at the neighborhood also. What should you look for in a new neighborhood? Check out these tips. Local Schools Find out which school district the house is located in. Research the public school and any private schools in the area. Things you might want to know about the schools include: Student to teacher ratios, grade levels, class sizes, extracurricular activities, tuition and fees.

When it's time to take a tour of that home you are considering, you may be wondering about the things you need to be looking for. Check out these five things you want to be sure to take a look at as you visit a home. Storage How much storage is there in the home? Take a good look at the closet spaces, utility room, kitchen cabinets, and basement. Will there be enough storage space in the home for you and your family?

Once you’ve decided to take the plunge and buy a home your first step is to educate yourself. The more you know about the home buying process the less stressful it will be for you to buy your first home. There are several terms which you may have heard but not quite understood over the years related to home buying. Let’s take a look at some of the most important terms you will come across during your experience. Appraisal An appraisal is required by the lender when you apply for a mortgage for a specific property. This inspection is performed by a licensed appraiser who will estimate the value of the property and home. Many times the appraisal also includes fair market pricing which lists other properties in the same area and their selling price. You can consider this your guarantee that you are paying an appropriate price for the home.

For many Americans, owning a home is a dream to work toward. However there are also many renters that have no urge to own. Whether you buy or rent is a personal decision, but if you are thinking about buying there are several things to consider. To avoid getting trapped in a mortgage you can’t afford or a home you can’t manage you need to ask yourself whether you are really ready to buy or if you should continue to rent. The following are a few factors that will help you decide. Finances To purchase a home it is recommended that you save at least 10% of the selling price range you will be shopping in. This amount is needed for an earnest money payment, closing costs and fees. If you are unable to put aside this money while you are renting your finances will need an overhaul before you can responsibly purchase a home.

As a home buyer, you may be looking at auctions to find your new home. Before you raise your auction paddle or tag and hope to hear "Sold!" there are a few things you need to do. Check Out the House When a house that you are interested in goes up for auction, check it out. Make an appointment for a showing and look everything over thoroughly. Ask for specs on the home and property. Ask about recent home inspections and if there haven't been any, arrange to have the house looked at. You will need to know what repairs are going to be required before you decide to start bidding.

Photo: pallspera.com When it comes to searching for a home, safety needs to be a priority. No home is worth jeopardizing your personal safety or financial security for. Check out these tips to help you stay safe while you search for that first home. Never Go Alone When you visit any home, take someone with you. Never go by yourself. This is especially important if you don't know the neighborhood. Always Make an Appointment

If you're ready to hit the home buying market, you need a good real estate agent. How can you sift through the many choices and find the right real estate agent for you? Here are a few things to look for as you make your choice. Licensing and Credentials Check with your state's real estate regulatory board when you research specific real estate agents. You can learn about licensing and any disciplinary issues that may have occurred. Ask the real estate agent you are considering about any credentials or extra training they have undertaken. The more they know about their job and the market means more knowledge and experience available to you. Recommendations from Past Clients

The answer is a resounding YES. Think of it this way. You never head out to the mall or any sort of department store without your wallet or debit card. You know exactly what's in your bank account, how much you have budgeted to spend, and what type of deals you're looking for. The same should go for the home buying process. Without having a mortgage pre-approval in your hand first, you really have no idea how much home you can afford to buy. And that in itself is a two-part problem, because the amount of your pre-approval may not necessarily be the amount you can actually afford in your budget at the end of every day.

FEMA Home Inspection, Wikimedia Commons You’ve found your dream home and you’re ready to place a bid. Your bid will, or should be, contingent on the results of a home inspect. The home inspection will identify any problems so that you can work with the seller to determine how (or if) they can be resolved.  Truth? You won’t find a home that doesn’t have some sort of problem – old or new. The question is whether or not the problems outweigh the benefits (financially and otherwise) of purchasing the home. Hire an Inspector No matter what – No. Matter. What. – remember that you are not a home inspector. You might be, actually, but when it comes to the home you want to buy, you are not. Get it? You need a third-party to evaluate the property objectively.

As a first-time home buyers, you’re likely overwhelmed with the amount of information available to you. There are several different loan options, pros and cons for each, and a myriad of other financial considerations to keep in mind. This week we’ve done our best to curate a collection of articles designed to help you gain a better understanding of the market. At the very least, you’ll be able to approach your potential lender with a list of realistic questions. So what have we found?

As a renter or someone living in an older home, you may have settled into what was a relatively comfortable budget. Now that you’re getting ready to purchase a home, you are going to need to sit down and take some extra time to review your budget, making changes for the new line items you’ll need in your new place. Regular Monthly Expenses First you need to consider the expenses that will occur monthly, on a regular basis. These include:

The decision to buy a home is a tough one. Actually choosing that home is even tougher. You're going to see tons of houses that you're absolutely in love with on paper (or on the computer), only to feel disappointed or overwhelmed when you see them in person. Then, out of nowhere, it hits you – the perfect home. Don't be blinded, though. Make sure you keep your eyes peeled for flaws as you move through the decision making process. Understanding the Neighborhood Do a little bit of research about the neighborhood the home is in as well as the surrounding neighborhoods – especially if the area is new to you.

Wikimedia Commons Ouch!  Earlier this week it was announced that Citigroup had settled the inquiry into the company’s mortgage practices – to the tune of $7 billion. The deal, which was settled with the Justice Department, represents one of the largest settlements ever made in response to a federal inquiry; specifically in terms of the penalties levied. Of the $7 billion, $4 billion was in penalties alone while $2.5 billion will go towards providing mortgage modifications to homeowners. Another $500 million will go to the Federal Deposit Insurance Corp and 5 separate states.

There’s nothing quite like the feeling of getting out on your own. And while signing the lease on your first rental house or apartment probably gave you a sense of independence, there is really nothing that compares to signing the loan and closing papers on your first home. Feeling unsure about your financial situation? The following are three great signs you’re ready to buy your first house. You Have Been Saving a Down Payment If you haven’t been, you shouldn’t even be considering a home. Most lenders want you to have at least 20% of the purchase price of a home before you buy. That means you’d need $60,000 to buy a $300,000 home. That’s a lot of money. While some programs may alleviate some of that initial burden, it’s important to start off on the right foot. Loans that require no down payments, or a very small down payment, often cost you more in the long run.

If you know a homeowner, or are one already, you know people who have had their mortgage loan applications approved by some sort of bank or lending institution. What you may not hear about as often are the stories of those who have had their mortgage applications rejected. While the market is easing up a little bit, it’s definitely harder than it was before to get a loan for a home purchase. In 2010, lenders were only accepting about 55% of the applications presented to them. While that number has gone up, it’s still important to recognize the warning signs of a potential rejection – and to know what to do to avoid them. Your Income Documentation isn’t Clear One of the most important factors when looking at a home loan application is proof of income. Your lender won’t care how wonderful your credit score is if you don’t prove you have a consistent, reliable income. You need pay stubs, tax records, and anything else you can show to prove you are earning regularly. There

Originally enacted in 1975, the Home Mortgage Disclosure Act (HMDA) was designed to require lending institutions to make public loan information and data to the government. The purpose of the act is to make it easier for the government to identify lending patterns that may be considered discriminatory, to help attract private investments, and to make sure lenders are actually serving their communities by helping them to meet their needs in terms of ongoing housing. While this may not have been as big a deal in 1975, changes in the economy and the most recent lending and housing crisis have bought the HMDA to the forefront of the minds of many legislatures and government officials. For you, as a consumer, it is important to recognize the act as a tool you can use to protect yourself against lending discrimination.