People who want to raise fund for buying a house or land will always opt for the secured finance loan named as mortgage loan. Mortgage loans that can be used either for personal or commercial purpose should be repaid to the bank within a period of time. For taking a mortgage loan you need to place your asset in the bank as mortgage. Usually the legal documents of the plot or the ownership of the property that you are going to buy will be kept as the collateral against the mortgage loan. This security will provide backing for the value of the loan.Leave a Comment
Reverse mortgages allow senior homeowners to convert their homes equity into cash. If you are currently a homeowner 62 years of age or older, and do not plan on selling your home within the next four years, a reverse mortgage may be an option that you want to consider.
There are virtually no eligibility requirements and neither your income nor your credit rating are of any consequence. With a reverse mortgage you don’t have to make monthly repayments as the loan doesn’t have to be repaid until you either pass away or sell your home. You can even obtain a reverse mortgage if you still have a balance on your current mortgage loan. Keep in mind, however, you are still responsible to pay the remainder of the balance for your original mortgage that should this happen.2 Comments
It used to be the first choice of most borrowers, because since the total payments are spread over a longer period of time with the interest rate set for the entire time of the mortgage. 30 year home loan rates are an industry standard but is it the right choice for you? Because the total payments are spread over a longer period of time and the interest rate set for the entire time of the mortgage. This was the first choice of most home owners.
As we mentioned, the plus side for a 30 year home loan is lower monthly payments. This attraction is somewhat dimmed by the fact that you pay thousands extra in interest. But, your interest is 100% tax deductible which does lower your after tax cost. It offers you some flexibility so that if your financial situation changes and you have more money you can pay it off in less than 30 years, this while keeping the low monthly payments. Your payments are smaller so in reality you can purchase a larger roomier home.Leave a Comment