Why Reverse mortgage is good

Reverse mortgage is good for the senior citizen who cross the age of 60.Reverse mortgage loan help your to pay all the previous mortgage bill and the interest rate is also very low. There is no strict rule for payment till the life period of the loan taker.

Main advantages you can get from the reverse mortgage are:

• You can use your own home: In reverse mortgage you don’t need to vacate your home after a time period if you unable to pay the mortgage loan.
• Reverse mortgage will not paid till the time last borrows live. Reverse mortgage main aim to help the senior citizen show in their life period there is no question of loan payment arises. Reverse mortgage loan paid when the borrower will die than the property sold and the loan amount taken with interest by lender and if there is any surplus amount than its return to the heirs or the owner.
• Reverse loan is also safe from lender point of view also. First the property and land value increases most of time .second reverse mortgage include obligatory mortgage insurance option also, so if due to any reason the property value is not equal to the actual mortgage bill than the mortgage company get the remaining amount from the insurance company.
• Senior citizen or the borrower and also able to pay there mortgage amount as per there convenience in that case they need to consult with the lender bank.

Refinance is need to be fruitful

The main reason for getting the refinance scheme is to get benefit .If you are not benefited by refinance than it s useless.

• Reduce the Monthly Payment: Refinance will help you do reduce your monthly payment of mortgage bill. If you are not getting at least 5% reduction in the monthly mortgage bill than the refinance is useless. The most of the financial institution refinance to give such opportunity to reduce your monthly bill if you pay $10000 in month than the new refinance will help you to reduce the bill $9500 that means you can save up $500 each month.
• Some people refinance to get out of the mortgage debt as soon as possible .They want to get the offer of reduce interest rate by paying the large mortgage installment .If your mortgage maturity is 30 years, if the reduce interest rate give you the option to refund the mortgage debt in 15 years than sure it is beneficial otherwise it is useless.
• Refinance help you to pay the secured debt, whose maturity period is near. Suppose you take car loan or mortgage loan whose maturity is over by paying two installment or due to some reason you cannot able to arrange the installment amount for your debt

Selection of Mortgage lender

Mortgage finance is available by different bank and financial institution. They promote there advertise that its make you confuse or overwhelmed to whom you can select.
There is some points help you in this matter.

You can search on net mortgage lender there are some question you need to give like property time mortgage value than it show a list of mortgage lender. You select those whose are near from your location. Check there quote and the charges. You can also get consultation from your own bank because they don’t want to lose there customer and will give some good offer to you.

If you are working a realtor ask her in this matter there suggestion will great help to you.
Take there tips and suggestion to select the mortgage lender.

Make the list of the mortgage lender and there services charge and the time frame to give you the fund .Some time the mortgage lender take a long time to complete the documentation.

After getting all these report check the report of the mortgage lender with Business Bureau and check there past record .You can also search on net about there rating ,about there complaint history and the status of the complain made by the customer of the mortgage lender.

If the rate most of the mortgage lender comparable than check your personal relation with the loan officer .They reply to you all question or they can’t respond for your question.

If you want to get the mortgage loan than you also need to show the plan to refund the due amount to the mortgage lender otherwise it will create problem to get the mortgage loan.

Mortgage Industry different parts

Mortgage Industry divided into four major part :

1.Home Mortgage

2.Multifamily Mortgage

3.farm mortgage

4.commercial mortgage (taken on real state)

Home mortgage is the largest share of the total mortgage debt of the market and after that commercial mortgage is the second largest.Home mortgage debt is 90% of the total mortgage share of US mortgage market.

Companies directly involve in the mortgage market are :

1.Mortgage bank : These are the actual issuer of the mortgage loan to the customer sometime they issue the loan in secondary market also.

2.Mortgage Broker : They are work as middleman arrange mortgage for the client by bank and charge some commission or brokerage for there work.

There is also mortgage service some banks has there own mortgage service department maintain the record of the customer account.

Mortgage loan issue is not a issue task as thing by genral people .You need to apply for the loan with a bank with all the documents require as a proof that you are eligible and after that bank investigate and when they comfirm about your credit worthiness than the bank issue mortgage loan.

Step need to consider before refinance

When you go for the refinance of mortgage debt you need to consider some basic point which helps you a lot.

Refinance is the best option when the market interest rate reduces, but refinance will increase your total payment period and affect your retirement investment plan, so its better you can first discuss with the existing mortgage bank that with the change circumstances what the benefits you can get from them. Some time the bank change there policy to protect there existing customer and increase there market share.

You need to produce the entire clearance certificate to the refinance bank, so check all the current due of your bill credit card debt and EMI amount.

When you go for the refinance check the interest rate policy is it foxed rate of fluctuating of fixed for starting years after that it fixed.

Prepare the entire essential document like bank statement, income statement and NOC of the existing mortgage issuer.

Different interest rate on mortgage

Mortgage interest rate depend on your choice .Mortgage Interest rate is fixed or fluctuating rate .Fixed interest rate is helpful to fix the monthly budget because you know your monthly as well as yearly payment.

Suppose in market lowest interest rate available and you go for the fixed rate method than you are able to get the advantage of the lowest rate till your maturity.

Fixed interest rate method help you to protect from fluctuating interest rate.

If the interest rate is again reduce in the market you have the option to get refinance facility.

Fluctuating interest rate is useful when the higher interest rate is prevail in the market.

Again the fluctuating rate method depend on the agreement of loan.As per your agreement its change on three month ,six month or in a year or after 5 years.

Again the fkuctuating interest rate comes in caps of 2 percent or 4 percent means the lender can increase your loan only two persent for first time than 4 percent its depend on the agreement.

Mortgage paymet

Mortagage finance is help you to get your dream home which is very helpful for you and your family.

This is one part of the coin second part is that mortgage finance will eat up large portion of your income every month ,which will affect budget of your family.Most of the people try to get of the mortgage debt as soon as possible there fore they fix lower maturity period fix higher EMI .When you go for anyone of this option think twixe ,Its true that these all option helpyou to get out of the debt as soon as possible but this will creat a financial burden on you. Yes its true that your salary or your income will increase with time but its also true that your expenses increases with time period .When you go for the mortgage finance you are single but after some time you married and after some time you become a father which wil increase your expenses many time and charges of the medical bill exstra increases.Suppose when you apply for the mortgage loan interest rate is very high and it will reduce after some time so if you wait some time you can get the advantage of the reduce interest rate.

Your income not always same it will increases with time which can give opportunity to pay higher installment .There is also the possibility you lost the job.

Your family income may be increases after marriage and you can able to file higher installment than before but there is also possibility that your income reduce after divorse from your wife.

So,Its better that you can fix 40 % of your income as payment of the installment.

Commercial Mortgage

Commercial Mortgage is the second biggest share in the mortgage finance .Commerial mortgage is one where the mortgage fund are using for the financing commercial asst like shopping mole or hotel or the real state agent use this amount to finance their new property.Commercial Mortgage is one big loofall is that 80 % of it not refinanced.

Commercial Mortgage is charged high interest rate than the normal mortgage.

Commercial Mortgage maturity period is lower than the genral home mortgage .

Interest rate on the commercial mortgage genrally fixed or its fixed for the primary stage and than fluctuating on later period.

Debt consolidation for mortgage

Debt consolidation company prduce there add that they half cut your monthly payment of bill but what is actually happen they increase your mortgage bill higer than before.

Suppose your monthly mortgage bill payment come $7000 and your maturity period is 5 years that means you need to pay total 60 installment but when you go for the debtconsolidation company you get that your monthly bill reduce to $3500 but the maturity period increases to 15 years thatmenas you need to pay 18o installment that means your actuall payment increases many fold .If your maturity period increases than it wil affect your future investment plan your retirement plan and you are more chance of tackle unforeseen financial risk .

Refinancing is different thing than the debt consolidation because refinance help you get the advantage of reduce interest rate of the market it will increase your maturity period very less than debt consolidation programme.

Mortgage Information

Mortgage is brodly devided in two category :

1] Home mortgage and 2]Commercial mortgage

1.Home Mortgage : Home mortgage is one when you use the mortgage for getting your home where you can live with your family.

2.Commercial Mortgage : Commercial mortgage is one where you buy a property for commercial use and sale the same when you get good return from it.

If you go to apply for mortgage there are many people are ready to give you free advice from your family and friend ,but is better that you can get information from the expert who knows every detail of the mortgage.

Mortgage refinance company broadcast there add that they give services on free of cost to the people.

Actually these company add there charge with the EMI of the debtor.

When you go for the refinance than read the document carefully.

First time homebuyer some time already get the mortgage loan than to go for the long process .If you go for first time its better you can wait for some time as the mortgage really affect your income for long time .

Equity release scheme of UK

Old aged people of UK has only a limited source of income.They have only pension to meet there personal expenses .Equity release plan has give the opportunity for them to get the financial assistance on this age and for this they don’t need to pay it again .The lender has no right to vacate the property before the death of the owner [old aged citizen.

Here the children lost the right on their parent property ,and they can get the right if they paid all the dues to the lender.Again the income depend on the condition of the property if the property well maintained than the owner get the higher return for there property.

Equity release scheme is good option for the old aged people to whom there is no source of income .

When you go for the bankruptcy

Bankruptcy condition arise when you unable to pay the rest of the mortgage loan at any cost.Main reason for bankruptcy arise when you lost your job you got divorse you there is huge medical expenses due to any reason.Bankruptcy is not a easy task ,when you go for bankruptcy you contact with bankruptcy attorney on this matter .You can go to the bank also for help some time they can also help you by loan modification .Bankruptcy is badly affect your credit score .These are the option but if these all become unfruitful than its better that you go for bankruptcy.

Mortgage loan after bankruptcy

Bankruptcy means insolvency when you declare that you are unable to pay the remaining debt and produce evidence as proof than court declare you as bankrupt and you don’t need to pay the remaining debt.

It doesn’t mean that if you become bankrupt show you unable to get mortgage in future.

If you want to get mortgage after bankruptcy than you need to follow some rules and guide line.You credit score is need to improve in the market you need to produce the evidence that why you become bankrupt.

Generally after two years the bankruptcy not calculated for the new mortgage loan application but your credit score is need is much better condition.

Reverse mortgage is good for old aged people

Reverse mortgage is googd for the old aged people who cross the 62 years and don’t have any source of income.

Reverse mortgage decided on the basis of market value of you property or the credit value.

Reverse mortgege interest rate is lower than the other mmortgage anyone who has cross 62 years can apply for the reverse mortgage .You don’t need to pay the installment amount till the date you use your property as for your own living .You can use it for any commercial purpose.When you want to sell the property than first you need to pay the mortgage debt to the bank ,or after sale first you need to clear the mortgage debt than you get the remaining portion .

You don’t need to produce your income state ment for getting this loan and also there is no issue if you miss the installment payment.

Debt to income ration depend on down payment

Monthly installment or the debt payment ration will help anyone to get the exact figure of the mortgage amount .The debt income ration vary from 33% to 38% .The monthly installment include the percentage of the principal payment of mortgage and also the interest on the mortgage ,but on every circumstances it can’t be exceed the 385 of your income.Mortgage payment condition become strict if you made less down payment and your credit condition is not good in the market but on the other hand when your credit condition is good and you made a large amount as down payment than the term and condition is not as much strict as in first one.

Here the income is depend on the statement of document provided by you ,If you give only income statement than the mortgage installment decided on your salary only .On the other hand if wife and children also earning member of the family and each one want to contribute on the payment than the installment decided on the basis of the family income.

In this scenario the debt installment is high and the maturity period is low and you can get out of debt trap as soon as payment finish.

Mortgage help you get dream home

Everyone want to get his own home but in the primary stage of anyone’s career it can’t be possible to collect the huge fund for a new home, and if anyone wait for the new home 20 years than the property’s market value increases more than 40 % so mortgage is only the best tool to get the dream home at affordable price which also save your money from home rent.

Before you go for the mortgage debt search for the lowest interest rate and the longest maturity period available in the market.Also collect the information that which company provide the addition facility like insurance and refinance facility in the market.

Monthly Installment payment decided on the basis of the current income ,generally its 40% of the income but if the borrower think that its income increases with the time period than he can increase the EMI in future also ,or fix EMI on the joint income of his wife ,or family income.

Mortgage will help you to get your dream home ,but you need to clear one thing that it is secured debt .If you are unable to make mortgage debt in time you may loss your home.

Mortgage risk

Mortgage loan is also a risky factor. when you apply for the mortgage loan your current income is $5000 and you assume that after 2 years you get increment of $500 and your wife income is $4000 on that period, but this is pre assumption .As suppose you take mortgage loan and you met with sudden accident or you lost your job or family income is reduce due to divorse from your wife .

So when you go for the mortgage loan first think about the risk factor ,but risk is not predecided. In that scenario it is better that you can inform your bank for the situation and also inform your current income bank will help you a lot or modify your loan amount.

Genrally bank are not disclose all the factor to the customer so when you face such problem inform your bank ,you can also get help from your attorney in this matter.

Mortgage Industry different parts

Mortgage Industry divided into four major part :

1.Home Mortgage

2.Multifamily Mortgage

3.farm mortgage

4.commercial mortgage (taken on real state)

Home mortgage is the largest share of the total mortgage debt of the market and after that commercial mortgage is the second largest.Home mortgage debt is 90% of the total mortgage share of US mortgage market.

Companies directly involve in the mortgage market are :

1.Mortgage bank : These are the actual issuer of the mortgage loan to the customer sometime they issue the loan in secondary market also.

2.Mortgage Broker : They are work as middleman arrange mortgage for the client by bank and charge some commission or brokerage for there work.

There is also mortgage service some banks has there own mortgage service department maintain the record of the customer account.

Mortgage loan issue is not a issue task as thing by genral people .You need to apply for the loan with a bank with all the documents require as a proof that you are eligible and after that bank investigate and when they comfirm about your credit worthiness than the bank issue mortgage loan.

Step need to consider before refinance

When you go for the refinance of mortgage debt you need to consider some basic point which helps you a lot.

Refinance is the best option when the market interest rate reduces, but refinance will increase your total payment period and affect your retirement investment plan, so its better you can first discuss with the existing mortgage bank that with the change circumstances what the benefits you can get from them. Some time the bank change there policy to protect there existing customer and increase there market share.

You need to produce the entire clearance certificate to the refinance bank, so check all the current due of your bill credit card debt and EMI amount.

When you go for the refinance check the interest rate policy is it foxed rate of fluctuating of fixed for starting years after that it fixed.

Prepare the entire essential document like bank statement, income statement and NOC of the existing mortgage issuer

Mortgage refinance

Refinance is also increase your total term of maturity of loan payment which affect your retirement investment so, when you go for the refinance think on all the related point to protect you from uncertain risk of the future.

Refinance is not a good decision if the interest rate rises because it will increase your EMI also increase your maturity of debt.

Real State business and Mortgage

Everyone wants to build his or her dream home or want to buy a flat or apartment.

At the early stage of any one’s life his or her total income not allowed him to go for such big investment. Buying a home or buildup house is also one kind of investment. Building is only one such fixed assets, whose market value constantly increases .There, is simple theory of economy that if the supply is low and demand is high than there is ample scope for profit. Real state is only field where there is rare chance of loss .It is the only field where the return is increases 100% in some years.

Only big problem in real state is that here huge liquid cash required but there is surety of return and rare chance of loss. These liquid cash requirement is fulfill by the financial institution and mortgage is the debt which available on the lieu of the house building.

Mortgage debt helps people to procure your home.

Now the mortgage is debt so when you apply for it you need to read the entire document carefully, and also produce up to date document, like income statement, tax filling receipts and credit score. When you go for mortgage plan you need to do mortgage shopping. Mortgage shopping means collecting information of mortgage with different bank and financial institution because 1% change of interest will be a very big meaning because it help you to save a adequate money.