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.