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Month: November 2017

Why Always the Minimum Payment?

I was recently at a seminar about mortgages and such, not particularly focused on the anything special, just general mortgage stuff. Nothing major really happened accept a lot of conversation. One of the things I kept hearing people discussed was the minimum payment on the Pay Option Arm. That got me thinking a bit so I wanted to focus article on the minimum payment. Let's make one thing clear, if you solely sell the POA based on the minimum payment and nothing else, you will sell this loan. BUT, in my opinion, you will not have the same long term referral effects from selling just on the minimum payment as you would if you sold it on your knowledge of the product and the mechanics of the product. Also, in my humble opinion, if you sell it based only on the min payment, you should not be in this business! Here's what I mean: If you sell someone just on the min. payment, that's fine. (not really, but I'm trying to be nice) BUT, what if that person refers you to someone who has something of an understanding about finances and indexes and stuff? If that person comes to you and you can not discuss anything else intelligently, guess what? You have completely lost credibility with that person and that person may go back to the first person you...

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Why Always the Minimum Payment?

I was recently at a seminar about mortgages and such, not particularly focused on the anything special, just general mortgage stuff. Nothing major really happened accept a lot of conversation. One of the things I kept hearing people discussed was the minimum payment on the Pay Option Arm. That got me thinking a bit so I wanted to focus article on the minimum payment. Let's make one thing clear, if you solely sell the POA based on the minimum payment and nothing else, you will sell this loan. BUT, in my opinion, you will not have the same long term referral effects from selling just on the minimum payment as you would if you sold it on your knowledge of the product and the mechanics of the product. Also, in my humble opinion, if you sell it based only on the min payment, you should not be in this business! Here's what I mean: If you sell someone just on the min. payment, that's fine. (not really, but I'm trying to be nice) BUT, what if that person refers you to someone who has something of an understanding about finances and indexes and stuff? If that person comes to you and you can not discuss anything else intelligently, guess what? You have completely lost credibility with that person and that person may go back to the first person you...

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Help For Home Owners – Refinance Mortgage

If you are looking to improve your financial situation and you own a home, you may want to refinance mortgage payments. This simply means that you apply for a new secured loan so that you can pay off a different loan. The advantage is that by choosing to take out loans for debt, you may obtain a lower interest rate. The option to refinance mortgage payments usually is available when an individual already has a mortgage and he or she would like to pay it off via another one. The key to refinance mortgage payments, though, is to make sure that saving money is the case, for those who decide to go through with the process. Find out if the amount of interest saved on balances the normal fees associated with refinancing. Mortgage companies will provide a mortgage calculator to help figure out the math. Once a person has decided to refinance mortgage payments, he or she may be in a position to have more cash while simultaneously lowering the amounts paid each month on the mortgage. Refinancing mortgage payments allows you to use some of the equity you have in your largest asset, your house. When first buying the house, several factors influenced how high or how low monthly mortgage payments would be. An individual's credit rating at the time has a great deal to do with it,...

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Exactly What Are Reverse Annuity Mortgages?

Mortgages come in many varieties and can be quite confusing. Reverse annuity mortgages have a confusing name but can be very helpful for seniors. A reverse annuity mortgage is one form of reverse mortgages in general. Reverse mortgages were created for seniors and you must be at least 62 years of age at time of application. A reverse mortgage is a variation of a home equity loan. Normal home equity loans require payments made monthly towards the balance of the loan taken out. If the payments are not made, then the home is subject to foreclosure. For this reason, it can be very dangerous for seniors to take out normal home equity loans. Fixed imports might not keep up with increasing home equity interest rates. With a reverse mortgage there are no payments due on the loan balance until one of three things happened. The first is if the house is sold. If sold, the reverse mortgage balance must be paid off first with the home sale proceeds. The second event would be if the borrower no longer occupied the home. An example would be going into a retirement home. The final instance is the death of the borrower. There are two different ways that money can be received from a reverse mortgage. The first is a lump sum. This means the entire amount of the loan is given...

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Reverse Mortgage Brokers: Do not Settle For Less Than The Best

With the dramatic increase in senior citizens turning to reverse mortgages as a way to finance their retirements, the importance of having ethical reverse mortgage brokers has increased dramatically as well. Ethical standards for reverse mortgage lenders have been established in the National Reverse Mortgage Lenders' Association Code of Conduct, but not all reverse mortgage brokers deal with members of the NRMLA. What Your Broker Should Tell You Many people who decide to take a reverse mortgage rely on their reverse mortgage brokers for information about the costs of the process about which an ethical reverse mortgage broker will be forthcoming. Yours should be willing at the very least to tell you the following: o The cost of your application fee may not be refundable, so potential borrowers clarify that in advance. The application fee covers the cost of a home assessment and a check to determine if the potential borrower is in arrears on any other federally-insured loans. o Closing fees can be added to the loan itself, but if they are, will accrue interest. Some of closing fees are comparable to the closing fees of regular mortgages, but others are strictly designed as part of the reverse mortgage process. The origination fee and continuing loan servicing fees will differ significantly among reverse mortgage lenders. o At the loan's termination, there may be shared equity or value assessment...

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