Archive for February, 2010

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Fast Stop Foreclosure – Tips – Real Estate Help

Saturday, February 27th, 2010

As the foreclosure rate for the nation remains steady, Idaho foreclosure rate is slightly decreasing. In Idaho there were 569 foreclosures in April, 542 in May, and 501 in June of 2007. Even with the slight decrease in the foreclosure rate in Idaho, the number of foreclosures in the nation remains high.

Foreclosure is a result of not making your monthly mortgage payment to your lender. The truth is, financial difficulty can happen to anyone, so knowing your options when it comes to the foreclosure process is knowledge everyone should consider.

Here are some of the typical situations of financial difficulty that lead to foreclosure.

I have health problems and can not afford my mortgage
My real estate market has changed and now I can not sell my house
I had a death in my family and now I can not afford to keep my house
I lost my job and now can not pay my bills
My mortgage payment just increased and now my payments are too high
I am going through a divorce and need to sell my house fast
We just had a new baby and we can not afford to keep our house
Our medical bills are too high and we can not sell our house
Here are a few options when it comes to foreclosure avoidance:

Reinstatement Plan for your Existing Mortgage:Reinstatement of your existing loan is simply paying all of your back payments including, monthly principal and interest payments, late fees, and attorney fees. If you can prove to your lender that you are able to make up your back payments in one lump sum of money then your lender will consider reinstatement of your loan. Some possible sources of reinstatement money are from close family members, relatives, retirement accounts, income tax returns, and in some circumstances credit cards.

Repayment Plan with Your Existing Lender:If you encountered a short term hardship or financial difficulty and with time can repay your back mortgage then your lender may consider you for a repayment plan. A repayment plan is nothing more than making your existing mortgage payment plus some portion of your back payment every month. For this option you will need to be able to pay 20-50% of your total back payments up front. Then over the next 12-24 months you will need to pay your regular monthly mortgage, plus the remainder of your back payments. Consider this option if you can afford to pay more than your monthly mortgage payment, can pay 20-50% of your back payments now, and your financial hardship was short term.

Loan Modification:Some lenders will allow you to restructure your loan to stop the foreclosure process. If you can afford your monthly mortgage payment but can not afford to pay your back payments then restructuring your loan might be an option. A typical loan modification will add your back payments to the end of your existing loan principal. Loan modifications can change your current interest rate and extent your existing loan term. Your monthly loan payment will change so you will need to make sure you can afford the new monthly mortgage payment.

Refinance Your Home :D epending on how long ago you purchased your home and your local real estate market, you could possibly have enough equity in your home to refinance. When refinancing your home consider it a long term solution to stopping the foreclosure process. Get a loan broker or loan officer recommendation from a friend or relative. Typical refinance costs are between 2-4% of the loan amount. Loan fees pay for items like the appraisal, lender commissions, recording paperwork, and pulling your credit report. Stay away from loans with pre-payment penalties and adjustable rate mortgages.

Pre-Foreclosure Sale:A pre-foreclosure sale is simply selling your home before your lender takes your home back and sells it at public auction. Each state has its own foreclosure laws and therefore each state has a different foreclosure timeline. In Idaho, once you are 90-days delinquent on your monthly mortgage payment your lender makes it public knowledge. Most foreclosure notices are posted in your local business newspaper. In Idaho the lender typical reclaims your home 4-6-months after the foreclosure notice. If you can Sell your home fast before the lender takes your property then do it. To sell your home fast, consider getting a free, confidential, no-obligation offer from a local real estate investor.

Short Sale:If you do not have enough equity in your home to sell it, pay off your mortgages and cover the cost of selling, then a short sale might be your solution. A short sale can be very time consuming and complicated but should be considered a viable solution of foreclosure avoidance. Simply put, a short sale is negotiating with your lenders to accept less than what is owed on your mortgage. If you have a 1st and 2nd loan on your home, you have a much better chance of doing a short sale with the 2nd lien holder. This is because if the property does get taken back by the lender, the 1st lender gets the property. The 1st lender will then sell your home at public auction and what ever money is left over after the sale goes to the 2nd lien holder. I would not suggest trying to complete a short sale yourself. Having a professional who is experienced in short sales on your side can make or break the short sale deal. There are many details and paperwork involved in short sales. Having someone who knows the short sale process and paperwork is definitely required for success. One of the largest factors in starting the short sale process is having an offer from someone to purchase your home. Lenders will not start processing your short sale paperwork until you have a signed purchase and sales agreement for your home. This is the reason I would suggest contacting your local home buyer Very few Realtors know the process of a short sale, or even what it is. Also listing your property and waiting for an offer takes away the valuable time needed to complete the short sale process. Real estate investors charge you nothing to purchase your home, you sell your home to stop the foreclosure process, and the bank does not have to go through the entire foreclosure. Everyone wins in a successful short sale.

Deed-In-Lieu of Foreclosure:This is your last option before foreclosure. To be considered for a deed-in-lieu of foreclosure you can only have one mortgage on your property. Your lender typically requires you to have tried to sell your home recently and your home needs to be in good condition. Lenders will not always accept a property back and release you from your debt.

Unfortunately many of your options will have long term consequences affecting your credit that you need to be aware of. Therefore I highly recommend talking with a real estate professional about your foreclosure situation.

Many times the best foreclosure avoidance is to sell your home fast. You can sell your home fast to a real estate investor to stop the foreclosure process. Here are some of the benefits of selling your home fast to a professional home buyer.

They can make up your back payments
They can take over ready
Can you buy your house quickly in the day of your choice
They can work with the bank to make a short sale
You can sell your house quickly and rent back property investors

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Foreclosure – Do You Know the facts?

Friday, February 26th, 2010

The thought never entered your mind! You bought your home with the best of intentions. Perhaps the lender assured you that you could “just refinance” when those heart-stopping payment increases began. Perhaps no one even explained to you what could happen?

But here you are! With house payments that you can’t possibly pay…in an area with a depressed real estate market. You owe more on the house than it is now worth. Your chances of selling the home to break even are slim to none.

You could be in for a rough ride! What can you do?

The first thing to consider is why you are in this situation. What circumstances are preventing you from making your house payments? Foreclosure may possibly be avoided!

Is this a temporary situation?

Have you been laid-off or lost your job?

Has an illness put you behind?

Has your interest rate increased too much?

The answers to these questions will make a difference in your approach to this problem.

Let’s start with the easy ones. If an illness or job lay-off has put you behind in making payments, the most important thing you can do is communicate with your lender.

Many times, the lender will work with you. They have a lot of foreclosures on their books right now…and they don’t want another one. If you have had a history of making your payments on time, the lender will most likely help you. They can sometimes add your late payments on the back end of your mortgage…and bring you current on your payments. This is by far a better solution than foreclosure.

What if there is no other answer but foreclosure?

What options are available to you?

Always try to sell the home before it gets to foreclosure. If you live in an area with high visibility, try to sell the home without involving an agent. this will save quite a bit of money that might make the difference in whether or not you can break even.

If selling the home is not possible…perhaps you owe too much or have already added a 2nd mortgage to your list of problems, it’s time to consider more drastic measures.

A short sale might be your answer. A short sale occurs when property is sold for less than the amount of money owed. Sometimes the lender will decide that their interests are best served by accepting less than what is owed in mortgages on a property.

Typically, the lender will want a Realtor involved in a short sale because of the amount of work and legalities involved. You might contact your Realtor to discuss these options because you will have to have an offer in place to begin this process.

The short sale will still result in damage to your credit rating, but it’s not quite as bad as a foreclosure.

The foreclosure process will depend on the state in which you live. Some states have judicial foreclosure, which is a court-ordered action. The lender obtains the right to foreclosure by filing and winning a lawsuit.

Most states are non-judicial states. This type of foreclosure typically takes less time to complete than judicial foreclosures. This is because the borrower pre-authorizes the sale of the home in the loan documents.

The timeline for non-judicial foreclosure is usually 3-5 months. The motion will be filed with the court after 90 days of non-payment. At this point, there must be notices placed in newspapers and at the court house…usually 21-25 days. After this period has passed, the property is sold in a trustee sale or becomes inventory for the lender.

Are you aware that you will most likely receive an IRS 1099 for the difference in the short sale and what you actually owe? This is considered income for you and can result in a large tax bill for you at the end of the year.

Sometimes, the lender will accept a “deed-in-lieu of foreclosure”. The property still goes back to the lender…but saves the expense of foreclosure. The damage will still be on your credit report. But again, anything is better than full-blown foreclosure.

If bankruptcy is involved, it may forestall the foreclosure by a few months. If you are filing for bankruptcy, please consult your attorney about this issue.

It is always wise to keep the communication lines open with your lender. Explore all your options…because they lender wants to avoid foreclosure as much as you. Working with them!

We always love to hear from you, then please contact us with any questions.

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Know before you refinance the mortgage 2

Friday, February 26th, 2010

There is no arguing that your home is your greatest asset. As the cost of living goes higher and higher, you may decide you want to get a second mortgage on your home. The money that you receive can be used to pay off those nagging bills and debts, do much needed maintenance or remodeling projects you’ve been putting off, or even pay for a child’s education. But you must be careful when applying for a second mortgage. You have got to be sure that you can afford the additional payment. If you are unable to make this payment you are facing the prospect of losing your home.

Maybe you have already taken out a second mortgage on your home. But as the interest rates fall, you realize that you are paying a higher interest rate than what the norm is. Consider refinancing your mortgage to obtain a better interest rate.

Even if your credit is less than perfect, you can obtain a lower payment through a better interest rate. But there are a few things that you must take into consideration before you sign those loan papers.

First of all, you should probably get the advice of a financial advisor or tax professional before you say yes to any mortgage refinance. Your mortgage lender is an expert on home mortgages, but he is not an expert on your financial situation. Therefore, it is better to get the opinion of a financial adviser before you decide to pursue refinancing.

Next, make sure that you get all finance terms and conditions in writing. Read the contract carefully and be aware of what it really says. If you are not sure of something in the mortgage contract, do not sign it. Take it to someone who can interpret it for you such as your financial advisor or your attorney. You must know what is in the contract to avoid nasty surprises later.

Before you go shopping for a second mortgage refinance, study up on the lingo. Know what the terminology and abbreviations mean. Mortgage lenders love to talk in their own language. Don’t let them take the upper hand by not knowing what they are talking about. Knowledge will give you power.

Shop around extensively. Don’t make the mistake of going with the first second mortgage lender that you come across. There is always a better deal to be found out there. Shop around until you find one that you are satisfied with. The Internet is a great source for the study of various creditors and loans. Find online gold mine, if you spend just 30 minutes or so looking around.

Do you have any recommendations on a wide refinancing 2 guides. Be careful and know that you get before signing. If you do well, you can pay for you in the long term.

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February 2008 Mortgage Licensing Update

Friday, February 26th, 2010

With the mortgage industry in turmoil and state legislatures in session, we can expect a lot of changes to occur in the next 2 quarters. The Nationwide Mortgage Licensing System debuted last month and is already going strong in 7 states. FHA is expected to change dramatically with the US Congress compromising on a new bill. Many states are likely going to be proposing bills to require the lender to verify the ability of the borrower to repay their loan. This means stated income will likely be a program of the past. States will be increasing their regulations dramatically in an industry that is already over regulated. This will mean more states requiring loan officer licensing and branch licensing.

Here is an update on Mortgage Licensing items to be aware of:

• Colorado Clarifies Trigger for Licensing

• Nebraska Branch Licensing

• New York Loan Originator Licensing

• Nationwide Mortgage Licensing System (NMLS) Update

• FHA Update

Colorado Clarifies Trigger for Licensing

On January 7, the Colorado Division of Real Estate issued a position statement seeking to resolve “uncertainty… in the market place regarding who is required to be licensed.” The guidance specifies that “persons who directly supervise individuals that negotiate, originate, or offer or attempt to negotiate or originate for a borrower, and for a commission or other thing of value, a residential mortgage loan to be consummated and funded by a mortgage lender” must become individually licensed as mortgage brokers. The Division goes on clarify that persons performing only administrative tasks are not required be individually licensed as mortgage brokers. The position statement defines administrative tasks to include: (i) receipt, collection, distribution, and analysis of information common for the processing or underwriting of a mortgage; and (ii) communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that such communication does not include offering or negotiating loan rates or terms, or counseling consumers about rates or terms.

Nebraska Branch Licensing

Nebraska is the first state to transition to the Nationwide Mortgage Licensing System (NMLS) with a transition deadline of February 28, 2008. Included in that deadline is new branch licensing requirements for the state. Make sure to add all branch locations that you want to be able to do business in Nebraska by that deadline.

New York Loan Originator Rules

On December 19, the New York State Banking Department (NYSBD) issued rules implementing the state’s new mortgage loan originator licensing statute (NY CLS Bank Article § 599-a et seq.) which goes into effect on January 1, 2008. Under the rules, originators who have not worked previously in New York will be required to apply for approval prior to April 1, 2008, but originators employed by or affiliated with a New York banker or broker prior to 2008 are not required to file an application until July 1, 2008. The authorization process will utilize the Nationwide Mortgage Licensing System (NMLS) which becomes operational on January 2, 2008. Applicants will also be required to submit fingerprints, credit histories, and documentation of their financial and criminal history disclosures.

Nationwide Mortgage Licensing System (NMLS) Update

With the release of the new Nationwide Mortgage Licensing System on January 2nd, 2008, there has been much speculation about whether the system would stand up to it’s goals to unify the licensing process, make license maintenance easier for licensees and regulators, and help regulators to track down the bad companies. Still being in the transition stage, we haven’t seen whether the last goal has been met, but we have had a chance to see what the system does and how easy it is to use. So far, I have found the system to unify the process quite dramatically. Much of the time of applying in multiple states before was the process of filling out the same information over and over for each state. The system has been created fairly user friendly to allow multiple users to access company, branch, and loan originator information to update it and amend for each state at the same time. Another thing that has worked well for the system is the call center. The people working there are very helpful, answer the phones promptly, and try their best to answer all questions as thoroughly as possible. Personally, I have had a run in with the state where they were still not very cooperative as most states are, but the system forced them to follow protocol and move forward whereas they would have let it go in the past. Altogether, I see the system bringing much needed changes to a major problem with the current way mortgage licensing is handled in many states.

FHA Update

FHA is one of the most interesting items to speak of this month. The House has passed a bill that will raise the FHA loan limits to as high as 125% of the median house price, which would be around $775,000 in California. The House bill also has a provision for a surety bond in lieu of audited financials when applying for or renewing an FHA Loan Correspondent (Mini-Eagle) Approval. The Senate bill only proposed to raise the FHA limit to the Fannie Mae Conforming Loan Limit, which is at $417,000 right now. The Senate bill also did not include the surety bond provision. At this moment, the Senate and the House are in Committee working on a compromise on these two bills. To add to the excitement, the House, Senate, and Administration signed an Economic Stimulus Agreement last week that called for the FHA bill to move forward quickly as well as a number of other changes specifically help the housing market in distress. This means that the parliament and the Senate bill is likely to compromise on a couple of weeks, if not sooner. The pressure is very high right now, as you head towards a recession. Expect significant changes to the FHA in the very near future.

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Payment Option ARM loan

Wednesday, February 24th, 2010

Have you been bombarded with offers of LOW mortgage rates in the mail? Are you wondering how can you get such a low payment?

Low rate loans are available at “teaser” start rates such as 1%, which can reduce your monthly payment drastically. This payment flexibility can help you stretch your current cash.

But watch out, these loans incur negative amortization! Your principal loan balance can increase every month, rather than decreasing. Also, most lenders will not loan a 2nd mortgage or line of credit with a “neg-am” loan.

A good loan choice is the Pay Option ARM. This loan allows you to choose a different payment each month. Select from options such as:

· 1% Minimum Payment

· Interest Only payment

· 30-year payoff

· 15-year payoff (higher monthly payment)

Some of these loans offer a built-in equity line, and deferred interest can be paid at the end of ownership. On the downside, some lenders do consider these types of loans to be “neg-am” loans.

So many types of loans exist, how do you find the perfect loan for your situation? Meet with your loan officer in person. It’s best to do business with folks you know and trust — they know your situation and have your best interest at heart. Ask for referrals from friends and family, find a loan officer with a good reputation in your community.

Beware of spam email, junk-mail flyers, and toll-free phone numbers. Their loan officers may give misleading payments or cash-out amounts that are unrealistic or impossible for your situation. Why? Out-of-area lenders are probably not familiar with the value of your property, your loan balances, or other liens against your house.

Also with the recent market, many lenders have closed their doors, some even during the middle of a borrower’s escrow. So when time is of the essence, make sure you’re using a loan officer with a good reputation, which can fund your loan on time or risk losing the deposit guarantee.

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Do's and Don'ts During the Mortgage Process

Sunday, February 21st, 2010

During the processing of your loan there are certain “DO’S AND DON’Ts” which may affect the outcome of your loan request. These remain in effect not only until your loan is approved but until the loan is actually funded and recorded. Many times credit, income and assets are re-verified after you have signed your final loan documents. We suggest you comply with this list.MAKE SURE YOU DO NOT:

MAKE SURE YOU DO NOT: Quit your job or get another job unless it is in the same line of work and for equal or more money. Please call this office if this occurs.Allow anyone to make an inquiry on your credit report. Each time this is done it can potentially drop your score and as a result you could become “un-approved.”Change bank accounts or transfer money within your existing bank accounts.Co-sign for anyone. Purchase an auto or take on any additional debt. I was doing a refinance on a borrower right before the Holidays. He went out and obtained a new department store credit card after I pulled his credit and had his loan submitted. He then proceeded to max out the credit card. This did two things- 1. Dropped his credit score (due to the new credit inquiry and having a now maxed credit card) and 2. increased his debts. Some lenders will re-pull your credit the day of closing, after you are approved, right before they draw your closing documents.Purchase any other real estate. Apply for credit anywhere or complete any other credit application. Charge any additional debt on any current credit card. Start any home improvements that are not a condition of this loan.MAKE SURE YOU DO: Keep all accounts current, such as the mortgages, car payments and credit cards. Keep copies of all paycheck stubs, bank statements and any statements on bills being paid off through this loan. Make payments on all accounts on or before the due date. If you have a problem making these payments, please call this office immediately.I hope this has been useful.



Losses miles

Licensed Mortgage Broker

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4 ways to pay the mortgage

Sunday, February 21st, 2010

Incurring a home mortgage is probably the biggest debt you will ever incur over the course of your life and by doing so you are strapped to 30 years of massive monthly payments. Paying off your mortgage in less time than the life of the loan can save you literally thousands of dollars – learn how to reduce your mortgage principal.

Bi-Weekly Payments

Most lenders offer a bi-weekly payment method, in which you make half-payment every two weeks. By making such payments, you’ll make 26 payments throughout the year, which adds up to 13 full payments – one more than the traditional monthly payments. That entire sum of that additional payment will be applied toward the principal of the mortgage (the money you actually owe, not including interest). Lowering the principal will in turn lower the interest on your mortgage.

You must setup a bi-monthly payment plan with your lender (i.e. you can’t simply mail in half the monthly payment amount). Some lenders charge a one-time setup fee for such a program, so make sure you weight the costs and paying the fee is worth the value a bi-monthly payment plan will provide.

30 to 15

If you can afford to, reduce the life of the loan by refinancing your mortgage from 30 years to 15. Your monthly payments will be considerably higher but you’ll be saving in interest.

Annual Lump Sums

A great way to reduce mortgage is to make one lump sum payment every year. When you come into a large sum of money, such as a tax refund or work bonus, use it to pay off your mortgage and that sum is put directly towards your principal.

Mortgage Prepayment Programs

Mortgage prepayment programs are ideal for homeowners lacking the fiscal responsibility needed to pay down their mortgage without any aid. Most programs will prompt make payments in certain amounts at certain times to reduce interest and pay the mortgage in one third of the scheduled time.

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Refinancing Home

Saturday, February 20th, 2010

Whether you are looking into reducing your interest rates, lowering your monthly payments or drawing equity into your home, home refinancing may give you the best edge to having that financial breathing space and the extra savings that you want. With that said, it is important that you know your options as far as home refinancing is concerned. Note that there are hundreds of mortgage options that are widely available, all of which vary in terms of fees, rates, payment schemes and features.

If you are interested in refinancing your home, you usually need to obtain a new first loan which provides more favorable terms and covers the rest of your mortgage balance. This is where you choose among the options available for you. Here are some of the most common types of home mortgage refinance options that you can choose from:

Adjustable Rate Mortgage

As is suggested by its name, ARMs offer fluctuating interest rates depending on market conditions, the lender and on the terms agreed upon. If you are stuck with a relatively high fixed interest rate in your existing mortgage, you can opt for home refinancing through ARM. However, it is very important that you consider this option very carefully and choose both your lender and your new mortgage terms. Adjustable rate mortgages are usually offered at lower rates, but in return, you will need to cope with the possibility of interest rate increasing anytime.

Fixed Rate Mortgage

If your existing mortgage has an adjustable rate, you may find it attractive to get home refinancing on a fixed rate loan. This type of loan sets your interest rate to be fixed for a specific period of time. This way, you are able to manage your finances more effectively with fixed monthly payments. Fixed rate mortgages are usually less flexible and offer lesser features. This may mean that you can not redraw on additional funds nor make extra payments as you wish.

Home Equity Loan or Cash-Out Refinance

This type of home refinancing basically involves getting yourself a new and much larger-value loan. This type of refinancing usually gets you some extra cash to consolidate and pay all your other debts, or finance home improvement, education, and so on. Cash-out refinances are usually set at a maximum of 90% of your home’s total worth. Some lenders may offer more, but you may be faced with higher fees and possibly higher risks. Also, as you borrow against your home, you reduce the equity that you already have built up and you may have to go through some extra tax consequences. Care must also be taken with home equity mortgages as many borrowers tend to increase their debt and spend away.

Deciding on refinancing and which particular type to take should depend on your circumstances: the length you will intention to stay in your home, your financial objectives, trends in interest rates, and so on. refinancing a house should be a serious decision, make sure you have the right goals in mind and refinancing of good reasons.

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Benefits and risks of 125% equity loan

Friday, February 19th, 2010

There are many great benefits of the 125% home equity loan and it appears that this financing legend is making quite a comeback. The term “125%” arises when a homeowner wants to take out a second mortgage on their home and the balances of the 1st & 2nd mortgages exceed the homes’ value. Any 2nd mortgage that has a combined loan to value between 101-125% is considered a 125% loan.

Mortgage Lenders are reporting an increased volume for home equity loan transactions, and notably in states along the coast like California, Florida, Georgia, Maryland and Virginia. However the 125% second mortgage seems to be more prevalent in states that haven’t been as blessed with home appreciations recently, like Missouri, Michigan, and Indiana. As with most residential loans there are benefits and risks. Lets examine these non-conforming second loans that don’t require you to have any equity. I will detail the pros and cons of these popular second mortgages.

Pros of the 125% Home Loan:

1. Consolidate credit card debts into a second mortgage can save you thousands of dollars in interest over the life of the loan.

2. Paying off costly installment loans can significantly increase your cash flow.

3. Converting compounding interest debt into a simple interest mortgage will help reduce debts quicker.

4. Refinancing adjustable rate credit with a fixed rate mortgage reduces payments.

5. Getting cash out of your home to make home improvements can increase your homes’ property value.

Cons of the 125% Equity Loan:

1. The underwriting criteria is more difficult for 125% loans: (Higher credit scores, and full income documentation is required.)

2. Borrowing more than your home is worth can limit your ability to sell your home without coming out of pocket.

3. Trading a long-term mortgage for short-term debt like a car will cost you more interest.

4. 125% loans are secured to your property, so if you default on your payments the lender could try and foreclose.

5. The interest rate on 125% second mortgages is higher than 100% home equity loans.

Like many things in life, the 125% home equity loan option comes down to your plans for the future. If you have uncertainty on whether or not you will be living in the area for the next few years, then you may want to hold off on the 125% loan, and only borrow up to 100% of your homes value. The other option is an unsecured loan from a bank or credit card company. The unsecured loans usually have more credit requirements, and higher interest rates, but if flexibility is what you need, then that may be a good option. If you do not plan on relocating, and you have accumulated a lot of high interest debt, then the 125% home equity Credit may be the answer to your prayers.

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Type of Home Mortgage Refinance

Wednesday, February 17th, 2010

An augmentation in the amount of an outstanding home loan is referred to as a ‘home mortgage refinancing’. It requires the complete payment of a stupendous loan along with the earnings from the new one.

If you have built equity in your home, mortgage refinancing is, no doubt, an excellent option for you. You can opt for it in case you are willing to free up cash, invest in renovation of your home or consolidate all your debts.

The two most popular home mortgage refinancing options are second mortgage and reverse mortgage. These are described in detail as follows:

Second Mortgages

o It permits you to avail a second loan on your property or home in addition to your previous home loan.

o With second mortgages, it becomes possible to pull cash out of your home as you are required to give nominal monthly interest payments.

o However, the interest rate and the percentage of lender fees are higher than the first mortgage owing to the high risk involved in the former.

o Home loans are of two types: fixed rate mortgage and adjustable rate mortgage. Depending on which of the two you have, second mortgages might differ in length. The period varies from 1 year to as long as 20 years.

Reverse Mortgages

o With reverse mortgages, you are permitted to transfer your home equity into species.

or more, it is necessary to reduce the housing loan until you no longer live in this house.

O This is very useful, because they are taxed.

Oh, if you're retired and looking to use the equity in your home, you can opt for a reverse mortgage.

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