The Pros and Cons Reverse Mortgage

July 14th, 2015


A lot of us are not aware what a reverse mortgage is all about. The
reverse mortgage is actually the opposite of a mortgage loan. For
instance, in case you have a house for which you have already paid. The
lender pays you money on a regular basis against the market value of
your home. This is a superb option for people who are old and cannot
work. This as result ensures them regular money flow sans any much
effort. HECM Equity Line of Credit Georgia offers a wide array of
schemes which can help senior citizens. HECM basically refers to Home
Equity Conversion Mortgages. This presents money solutions to a wide
array of people. With reverse mortgage schemes you will be able to buy
things which would have otherwise seemed beyond your reach.


Usually a lot of people consider retirement as the end of their life.
But in reality, this is the time when you are free from all your work
responsibilities and can begin to enjoy your life to the fullest. There
are various types of reverse mortgage plans, but in some way or the
other they are similar. You carry on staying in your own home akin to
what happens in a normal mortgage. You even pay the property taxes. You
are accountable for maintenance, house insurance and even repairs of the
property.

At the conclusion of mortgage, you need to pay all
the cash advances together with the interest amount. In case you are
unable to do the same, the lender can easily foreclose your house.


Reverse mortgage comes with a financing fee .This also holds true with a
forward mortgage. The money which you get from a reverse mortgage, you
can use it to pay this fee. These costs are usually supplemented to the
loan balance amount and you must pay them back together with interest
when the loan period comes to an end.

In case you have a good
property, but you are cash poor, then reverse mortgage can make the last
years of your life totally comfortable. The catch that at end of the
mortgage period if you are still alive or you have no money to pay the
loan amount you will end up losing your place of residence as well. This
can be a very scary thing. Many times people fall into debt quagmire
because of resorting to reverse mortgage. So be wary and resort to this
option with caution.

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Are Private Banks an Alternative for Mortgage Lending

July 12th, 2015


How satisfied are you with the state of UK banks? Have you found that
you have been unable to borrow the level of mortgage that you need
because mainstream lenders simply have a tick box mentality with regard
to affordability criteria? Are you struggling to find a good home loan
deal at a favorable rate of interest? Are the stringent lending criteria
of the high street banks and building societies preventing you from
moving house?


If you have experienced any of these problems then you are not alone.
Research has revealed that the majority of high net worth customers
believe that the UK banking industry could provide a better service to
borrowers. High Net Worth individuals (HNWs) are those who earn over
300,000 per year or hold over 3 million pounds of assets.

So, if
you’re looking for better banking or lending, a private bank mortgage
or bank account may be the answer. Private bank mortgages offer a great
alternative to ‘tick-box’ focused lenders.

The research from
Duncan Lawrie Private Bank questioned 1,000 clients, all of whom hold
assets of over 250,000. The survey found that seven out of ten of these
high net worth finance clients believe the UK banking industry could do
better.

Around three quarters of respondents (76 per cent) to
this particular survey would prefer a more personalized service from
their banks. And, nearly one in ten said they have had their bank
accounts hacked. Of those people who were hacked, 18 per cent stated
that their bank did not recognize the change in spending habits that
should have flagged up a problem.

And it is not just the very
wealthy who have formed this opinion of banks. Mortgage Solutions has
reported that the banking sector has come under criticism in recent
years for its bonus culture, putting short-term profitability ahead of
customers and, more recently, the Libor-fixing scandal, which continues
to appear in the news long after it was first exposed.


As far as consumers are concerned the retail banking industry has
changed significantly in the last 30 to 40 years. Whilst bank customers
value the advantages of internet banking and mobile banking to help them
manage their accounts and finances more easily, they also wish for a
return to the traditional values that the banks once had as trusted
advisers who put the customers’ interests first. And this is why private
banks have increased in popularity.

As well as offering a
better banking service, private bank mortgages have also become more
popular, particularly among high value mortgage clients, in recent
years.Over the last few years, private banks have plugged a gap that has
been created by the reluctance of mainstream banks and building
societies to lend high value mortgages to high net worth clients.


Many London mortgage brokers have, during this period, built up strong
relationships with dozens of private banks in the UK and overseas. These
banks have an appetite to lend and are eager to offer their bespoke
services to high net worth mortgage clients.

High value mortgage
borrowers often have complicated income and property ownership
structures which fail to meet the ‘tick-box’ lending and affordability
criteria of mainstream banks.Private banks are much more likely to take
these factors into account and make a lending decision based on common
sense. They can offer flexible, tailored large mortgages and a level of
service which is demanded by high net worth clients.”

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Best Mortgage in Virginia

June 29th, 2015

In more than six years today happens to be one of the best times for
home loan lenders. It is also a good time for those who are in need of
home loans. Through the government’s concerted efforts property prices
are now rising. It is also true that the cost of borrowing is edging
down. If you want an MD mortgage, there couldn’t be a better time for
you to get one. This is the right time for anyone who wants to own a
home especially in Virginia.

The demand for Mortgages in Virginia is fast rising.
Likewise the price on property in this the state of Virginia is on an
upward trajectory. You can today get a Virginia home loan easily than it
was last year. Possibly by the end of this year things may ever get
better. But having said that it does not mean that you know how and
where to look for a mortgage, some guidance is needed. First you will
need to contact a lender so that you get your credit score.

Your
credit score is one of the most important items that lenders use in
their consideration of the applications. Share your credit with the
other lenders that you will contact. This will save you a great deal. If
each lender pulls your credit score, too many inquiries may impact
negatively on the score. Allow at least one lender to pull your score.


We have several credit score models such that the score that you pull
and see as a consumer may be different from one that a mortgage lender
needs, so allow the lender to pull it for you. With that out of the way
now focus on providing your lender with the information that he needs.
The interest rate on your loan is based on the loan to value ratio. Due
to this you will have to disclose to the lender the amount of down
payment that you’re able to provide. If you can provide a large down
payment just do it, it will help in bringing down the interest.


Mortgages in Virginia can be tailored to meet your specific needs. If
you want to refinance, well and good. You will find a lender who is
willing to refinance your mortgage. Refinancing is a great way to reduce
the interest rate. However remember that if you’re taking cash the
reverse would be true. Taking out cash on refinance could raise your
interest rate by as much as 1/8 of a percent. Just try and ensure that
you’re not one of those customers who are considered high risk. Lenders
consider you a high risk borrower if you opt to pay your taxes and
insurance by waiving escrow.

Last but not least know when the
closing is going to happen. The lock-in period affects your mortgage
rate. Ask different lenders what they charge for the different loan lock
periods that you want to consider. Lock in the interest rate for the
right duration by telling your lender when you expect the closing to
take place.

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The Majority of People Fail to Grasp the True Cost of Their Mortgage

June 28th, 2015


The mortgage fees and charges applied by banks and building societies
are not always as clear as they could be and many people do not
understand exactly how much a mortgage will cost them over the lifetime
of the loan. Many simply ficus on the monthly repayments and the
interest rate they are paying. Yet research has revealed that only five
in a thousand people in the UK understand the true cost of their
mortgage deals. The survey by which found that a staggering 99.5 per
cent of borrowers failed to grasp all the costs involved with the
average mortgage deal.


Lenders are being urged to change the way they communicate their
mortgage fees as a result of this research from the consumer group.
However, the data is not wide ranging as it only looked at 2-year fixed
rate deals based on a 100,000 home loan but it did indicate that the
average consumer found it difficult to assess which was the cheapest of a
range of deals because of the lack of transparency in the fees and
charges and this is what is of most concern.

Whilst the results
varied depending on the type of borrower questioned, the survey
nevertheless showed that only a minority could correctly order 5
mortgage deals from most expensive to least expensive so this is
worrying research as it clearly shows that most borrowers find it hard
to work out the total cost of a large mortgage deal taking all costs
into account.

Sometimes the deal with a higher arrangement fee
can work out costing less and sometimes the deal with the lowest
interest rate is not the cheapest. It, obviously depends on the level of
mortgage you want to take out, the interest rate basis (fixed, tracker
or standard variable) and the mortgage term. It is often worth taking
specialist advice to establish which is the best deal for your own
personal and financial circumstances


On the whole mortgage borrowers find it difficult to accept that a low
interest rate deal is not necessarily the cheapest; a typical borrower
is still attracted by the headline rate rather than by the overall cost.

Nevertheless, lenders should be more transparent when showing
their charging structures so that borrowers have the opportunity to more
easily compare total costs rather than simply headline rates. This is
so important because more than 80 per cent of the thousands of mortgages
available in the UK include arrangement fees or other types of fee. And
mortgage arrangement fees have been rising rapidly over the past 2 or 3
years.

Many of the very low mortgage interest rates now on
offer can seem very attractive, as indeed some are, but the flip side of
those low rates is that big mortgage arrangement fees are being
imposed. These fees have risen dramatically,making it even more
important for borrowers to understand the cost of their mortgage over
the lifetime of the deal, especially those with large mortgages that are
likely to incur higher charges. If people are struggling to understand
such an important financial commitment them lenders should be doing more
to help clarify the costs.

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How to Pay your Mortgage Bi-Weekly

June 24th, 2015


All loans are setup to collect a payment from you once a month. That
means you are making 12 payments each year. Interest is added to your
loan based on the balance you owe and the rate per your original
contract. So, for example, If you have a loan for $100,000 and your
interest rate is 4% for the first month you are going to add to your
balance $400.00 or 4% of the $100,000 loan balance. Each month you’ll
add 4% of whatever the remaining balance is. If you really want to save
your thousands of dollars and cut years off your mortgage you want to
reduce the principal balance so the interest charges are less.

How does it work?


There are 12 months in a year, and in every year there is 52 weeks. If
you pay mortgage payment with a Bi-Weekly program you pay 26 payments of
one-half your payment instead of 12 regular payments. This results in
two additional half payments each year or one full payment. The extra
payment goes towards the principal of the loan. By reducing the loan
balance the homeowner is also reducing the interest charges. By paying
like this your loan will have less interest costs and the term of the
loan will be reduced.

How much you can save?


On a $200,000 mortgage at 5%, you’ll cut the total term by about five
years and shave off more than $34,000 in interest costs. This is not
some magic formula. Rather, it’s careful and diligent planning which
achieves a reduction of the principal balance.

Most lenders won’t accept a Bi-Weekly payment. They want to process your mortgage payments on a monthly basis.

Do it yourself Biweekly Payments


If the lender does not allow homeowner for Bi-Weekly program but the
homeowner is interested in paying the loan off early, then he can open a
bank account and he has to made arrangement for the mortgage payments
to come out every month in two bi-weekly payments. And at the end of the
year, the homeowner can write a check on the account for an amount that
will be the same as the monthly payment and sent into the lender. Or, a
customer can simply pay extra payments throughout the year. However,
the easiest way is to contract with a Bi-Weekly Payment Program and let
that company manage this account for you. The results will be achieved
by following the program and for the small cost of enrollment you can
achieve substantial results.

Myth for Biweekly Payments


Paying your mortgage twice a month gives you better credit: This is
wrong, bank often use an automatic bank draft, which means all your
mortgage biweekly payments will be made on time. But if you want you can
get the same effect on a monthly payment plan using automatic bank
draft.

Advantage of Mortgage Biweekly Payment

Below are the few things which Biweekly payments can do

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