Big Pricing Change for Reverse Mortgage

By Matt Vanrock

The reverse mortgage industry is currently going through a big change. The powers that be (Fannie Mae) has changed the manner in which we, as reverse mortgage companies, price the loans to our customers.

If someone were to contact me under the former pricing policy, I could instantly quote and be almost 100% sure I could stand by my numbers.

Furthermore, my quote was relatively etched in stone for up to 4 months.

Today we can throw this nice long lock period out. Now this industry is pricing its loans like traditional forward mortgages such that we now have varying short lock periods.

This is going to come up and bite some people, i can guarantee you. There exists a certain segment of reverse mortgage customers that are attempting to pay off a forward mortgage.

Their goal is to eliminate the burden of that payment.

Here is where they can get in trouble. Often the loan amount, offered by a reverse mortgage lender, is just enough to pay off the mortgage. A big factor determining how much the borrower gets is the interest rate.

The interest rate affects the amount of money a lender will lend in the opposite way of its movement. If rates are up, the loan is less. If rates are down, the loan is more.

Where our group of customers may be in trouble is they will call in for a quote. Rates will be good that day and the lender will verbally green light the transaction.

Two weeks later, after the market sends the rate up a point or so, when they go to lock they may no longer be able to pay that mortgage off.

At this point what are the choices for this customer? He can either wait for interest rates to drop back down or pay the difference in cash.

We can see that a few of these borrowers will absolutely go through this in the coming months and years.

The new pricing should offer a better experience for customers such that it should, because of its complexity, sift out some of the weak reverse mortgage loan officers.

The strong loan officers will have a handle on how to present this to seniors and will win most of this business. Good for us.

About the Author:

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Buying Memphis Home

By S. Kim

When you are buying a home this can be a very stressful period in your lives. It does not matter where you live whether it is in Memphis, Los Angeles or Las Vegas buying a home is the biggest amount of money you will spend at any one time. In this article we offer a few tips which could help you reduce your stress levels when buying a Memphis home for example.

Tip 1 - Never think about buying a home if you are not intending to live it for several years. The costs of both buying and selling a property can be very high. So if you decide to sell your home quickly then you may find yourself out of pocket afterwards.

Tip 2 - In order for you to purchase your dream Memphis home you are going to have to get yourself a mortgage. If you want to get what you want at a good rate it is important that your credit history looks good. Therefore a few months before you begin looking for a property get copies of your credit history reports, which you can obtain for free from the credit reporting agencies (Experian for example). Now go through them and if you see any problems or errors with yours get them sorted out.

Tip 3 - If you can arrange to go for the mortgage that allows you to go for the additional point's option. This allows you to pay some of the interest off on the loan when it comes to the sale closing and your interest rate will be lower. Ideally people who instead to stay in a house for more than 5 years should be using this method as they will save quite a considerable sum over the long term of the loan.

Tip 4 - It is better to arrange to get your mortgage pre-approved before you begin searching for your dream home. Not only will you be able to see just how much you really can afford to spend on the property. But it will place you in a much stronger position when it comes to you making an offer on the house that you feel is right for you.

Tip 5 - Always do your homework before you actually put in an offer on a property. So what you need to do before hand is look what price similar Memphis homes are currently on the market for and what others have sold for. If for example you see homes are selling for around 5% less than the market price then you should come in with an opening offer of around 8 to 10% below the price that is being asked for by the seller.

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How to Receive Money from Reverse Mortgage

By Mulroony Vanrock

A senior gentleman called me last Friday. He wanted to discuss reverse mortgage options, in particular he wanted to know a dollar figure we might loan on his home given it's current value.

I calculated a sum of roughly $140,000, and he decided to move forward. His goal was to take the whole amount and plop it into into his local credit union account, live off of needed funds and earn interest on the balance.

Well, I had to slow him down a little here and let him know he was making a mistake. He is not an unusual reverse mortgage customer. He simply needs to supplement income for living expenses.

His home is owned free and clear. All he needs is an occasional draw of some kind to get him through. He is not extravagant in any way.

For reverse mortgages borrowers have four ways to draw upon the money alots them. My guy on the phone chose the one most likely to hurt his financial situation.

Here are the four options:

The 1st option is to receive a lump sum. This the option my borrower was looking for, so he thought. A borrower may draw out any denomination less than that which the lender is willing to lend that particular borrower.

Number 2 is for the borrower to receive a monthly payment. The borrower may determine the amount, which may have an end date when the money runs out, or the bank may set a number which lasts in perpetuity.

The 3rd choice is to opt for a line of credit. In this circumstance the lender allows the borrower to pull money out on an as needed basis. Unused money does not accrue interest against the home's value. For this reason this third option is a very popular choice.

Another important point to note about the line of credit is money sitting in the line of credit is accruing interest for the borrower's favor thus increasing borrowing power over time.

The last option is a combination of the forementioned options.

If we look more closely at my prospective borrower we can see that his best choice was a simple line of credit or a monthly stipend rather than the lump sum draw. He didn't need it, so why take that money out only to have all that extra interest accrue against the home's equity.

The point is it is all situational. Your situation determines the best choice for you.

About the Author:

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Asking For financial Help Is Not As Hard As It Appears

By Steve Collins

If you are like a lot of people these days, you may be overextended in your monthly budget. It is very easy to be lured in by the offers of fast, pre-approved credit cards flooding the mailbox. Cashiers at almost every store tempt you by asking, Would you like to apply for a store credit card and save 15% on all your purchases today? Online financial counseling is a step towards improved finances. If you have never considered it as an option, there are a number of reasons to consider online financial counseling.

Although you are far from alone in your concern over financial matters, it is often not easy to admit your mistakes and even harder to own up that you need help. Online financial counseling allows you to seek help in a confidential manner. One help is that by filling out the initial appeal for help through the Internet, you can be calmer and more collected than if you had to speak directly to a stranger. It provides you with a professional counselor sympathetic to your situation who will help get your budget back in line with your income.

Online financial counseling helps you reassess your financial footing by coming up with a sensible budget based on your particular situation. Sometimes, it is just easier for someone on the outside to see your finances in a clearer light and to help you distinguish your needs from wants.

Often, it is a matter of making yourself face the choice of brown-bagging your lunch and saying No to your daily $3.00 latte or deciding to hold off on buying that new sofa until you can pay cash for it. Financial counseling can get you moving back in the proper direction by teaching you how to make sensible choices. Also, renegotiating some of your credit may even be a possibility.

If you want to learn to live within your means and be financially liberated, you would do well to check into online financial counseling. You will not know what it can do for you unless you set the mouse in motion and log on. What are you waiting for?

About the Author:

Steve Collins is an author and journalist. In these trying times, he knows the importance of obtaining effective Debt Solutions if necessary. Read his article about Debt Solutions here.

Tips for Planning for Your Retirement

By Michael Geoffrey

Everyone has questions when it comes to retirement, and it is really no wonder, considering that retirement is one of the most important parts of everyone's life. It is important to be financially and mentally prepared, even emotionally prepared, because retirement can be a difficult phase in some people's lives.

Informed and advance retirement planning is crucial if you want to be ready, and so that you can actually enjoy your years of retirement and live comfortably. One of the first and most important things that you need to know when it comes to retirement planning is that you want to start planning as early as possible. Even if you start in your early twenties, which may sound ridiculous to some people, you will be doing yourself a huge favor in the end.

Plan your retirement with breathing room. Don't lock yourself into a fixed budget that will only sustain you for 15 or 20 years. Some people enjoy 25 or 30 years of retirement - some even more. It is best to be prepared and plan for a long life of retirement.

The Best Idea

Seeking help from a financial advisor is a smart choice in preparing for your retirement. A good financial advisor can help you examine all your options and set up the best retirement plan possible for your circumstances. They can help you project what the results will be from your retirement plan to give you added peace of mind.

These projections will give you a clear picture of where you will be financially when you are ready to retire. That will be a good guide for you in deciding how much you want to save each month and year towards your retirement.

By contributing funds as often as you can, even if it is only a few dollars here and there, you will really be surprised at how incredibly quickly it can add up. Remember that even if you already have accounts set up specifically for retirement, you can also put away a bit of your own money on the side every now and again.

There is no way you can go wrong saving for you future. The more money you save the more comfortable your retirement years will be. You will not have to sacrifice your lifestyle in the least when you make the transition from worker to retiree.

About the Author:

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The Ultimate Home Budget Planning Strategy For The Entire Family

By Jenni Snook

You need a home budget planning strategy for your family in both prosperous and poor financial circumstances. It's vital that you realise that having a plan to organise your income, debt and resources is an absolute necessity. This way, you can start saving for yourself and the future of your children.

Whether you make thousands of dollars a year, or are living below the poverty level, you need a family financial plan. By allowing yourself to set up a family financial plan, you'll be able to be goal orientated and see your progress.

The best way to start is to look at what is coming in and going out financially. This means looking at where your income have been coming from in the last 3 to 6 months and detailing all your expenses in a list.

After putting together all your family expenses from the last 3 to 6 months, it's time to go through all your receipts. This serves to plan for those items that you may have forgotten to purchase during that time. For example, it's not difficult to forget paying for club memberships or other fees that come once or twice a year. Don't forget to add this to your expenses so that it is budgeted.

You can now start to set objectives and budget things, now that you know how much money is coming in and going out. You may be having trouble making your bill payments on time and if you want to find money to make this easier, all you need to do is look at your receipts and reduce other expenses. It's important that you understand how much that mocha cost you on a monthly basis, other items that are not needed can really add up. And by cutting them out you be surprised how much money you can save.

Creating categories to identify expenses will make your budget easier to understand. You may have categories such as house expenses which may include power, water, sewer and garbage. And every category should have a subheading as well as a major heading so you know exactly where your money is going. It's simple to set a budget, if you know what your expenses are and what your income is.

With a budget, you can see how your financial plan progresses and soon enough you will be saving money for retirement. There's no doubt that home budget planning strategy for your family is important if you desire to secure the financial future of your family.

About the Author:

Jenni Snook is the leading author of http://www.HomeBudgetPlanning.com, a website focused on providing individuals essential yet very useful advice on home budget planning strategy for the family and a lot more..

Make Good Use of a Retirement Planning Calculator

By Michael Geoffrey

Retirement should be free of schedules, pressures and other worries, but individuals looking for a great retirement should start planning very early. A good retirement planning calculator can be very helpful in making the proper plans for a successful, enjoyable retirement. A retirement planning calculator can help people decide how much money they should save, invest or spend in order to have a successful retirement.

It is important to begin planning for your retirement early in your career. A Retirement planning calculator can be utilized and if followed can really help one prepare for the future. No one wants to be forced to stay in the workforce and put off their retirement because of poor planning. A retirement planning calculator can help.

Where can you find this useful tool? You can find them online possibly on your bank's website or other financial institutions. You can also visit your bank or as the human resources representative at your place of employment to see if they can provide one for you.

Of course the retirement planning calculator will only be useful if the information entered is accurate. Also, once the information is entered the direction given by the retirement planning calculator must be followed in order to maximize your savings for retirement. So once you locate your retirement planning calculator you must give some serious thought to how you will use it.

A Retirement Planning Calculator Provides Figures For The Future

So many things change when you retire. Your job will no longer dictate certain aspects of your life. If you chose your current home because of a job opportunity retirement will afford you the opportunity to relocate to a preferred area. These new choices and changes will create new financial decisions and circumstances.

Also during years in the workforce we generally have to consider our family and their needs. It is important to live in an area where your children can get a good education. However, once the children have grown up and have home and families of their own that is no longer something you need to be concerned about. Again, this offers opportunities for you to expand your horizons a bit and base your decisions what is best for you financially and otherwise.

A retirement planning calculator will help you factor in the cost of health insurance during your retirement. If you are in a financial position to take an early retirement but you have not yet reached the age where you are eligible for Medicare you will need to consider how you will pay for the health insurance you need during the interim.

About the Author:

Is credit counseling the best way to get out of debt? It might be, but there's no single best way for everyone. Visit the Debt Smackdown website for more helpful information about clearing up your debt.

Know what it takes to start a credit repair business

By William Blake

A credit repair business is not a difficult one to start. There are many people who have started this type of business with little or no experience to begin with. With a little time and effort they found that the knowledge they needed to have a successful credit repair business was not at all difficult to obtain. Many have been amazed at the profits they have been able to earn working from home in their credit repair business.

No Huge Expense to Get Started

One thing that makes a credit repair business an appealing one is that it does not cost a lot of money to get started. The start expenses are actually quite low. It is simply a matter of learning what credit repair is and researching what skills you need to have in order to do it successfully. Then you take the necessary steps to obtain those needed skills.

Good marketing skills are important with any business. With credit repair it is also important to have a good financial head and a good attitude with your customers. Patience is also a good thing to cultivate.

You can structure your business in many ways. You may structure it as a corporation or possibly a partnership. Whatever the structure, the name of your business is important. It is the first thing that people will learn about your business so you want it to be something that is attractive and that they will not soon forget. You want your business name to convey a feeling of trust and draw people to your company.

Another important aspect to starting a credit repair business is to be well aware of different Congressional credit repair laws; especially those that relate to your city and state as well as any other federal laws that apply to the country as a whole. This knowledge will stand you in good stead when you have to deal with the many fraudsters that use bad credit to break the law.

Customers are the key to every business. In today's world customers for a credit repair business will not be difficult to find. As many as 80 percent of people today have credit problems and need help repairing their credit. You will not have any difficulty finding people who could use your services.

With the rising incidences of people in debt there is now many a good credit repair business opportunity open to those with a more enterprising spirit. In fact, the new laws on bankruptcy recently signed by President George W. Bush have opened up the gates for those interested in doing credit repair business.

About the Author:

Tire of barely keeping up with your credit card payment? Learn some simple methods of how to pay off credit cards faster on the Debtopedia website. Visit http://www.debtopedia.com for a free copy of my "Secrets Of Credit Card Debt" report.

Purchasing Columbus Home

By Won Kim

With the way the real estate market is currently because of the financial situation it has become somewhat of a buyer's market. However, although buying a Columbus home or a home anywhere else has become easier how you do know what is the right price to offer on it.

In order to determine what price you offer on a house that you are considering buying there are certain things one should do. In this article we take a look at what some of these factors are which can help you to come up with an offer price that the seller will see as fair.

Step 1 - You need to actually look at what properties of a similar style have recently been sold for. There are plenty of places online today that allow you to search out such information. However, you shouldn't just go on the price that the property sold for but look at what other factors contributed to the sale.

Certainly a home that is in good condition and where improvements have been made is going to sell for more than one that hasn't. Also take into consideration the location of the property before you then put in your offer.

Step 2 - Another thing to look at is not just properties that are similar that have sold but the ones which are currently on the market. It is important that again you look not only at the price requested to buy at but what features it has which may be influencing this.

Step 3 - If you find a Columbus home that you are keen to put an offer on before doing so get an inspection carried out beforehand. This provides you with the opportunity to identify any issues which may result in you having to spend more on the property in the future. By having such information to hand then you are in a better position to put in an offer that you see as being fair and reasonable.

Step 4 - Look carefully at how long the property has been on the market for. Certainly with the current financial situation house sales have dropped dramatically. So you may find that when it comes to buying a Columbus home or a home anywhere else that the seller is more willing to negotiate on the sales price. This will especially be true if they have been trying to sell the property for quite some considerable time or if they need to sell quickly because of financial problems.

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When buying Columbus Home, please check out Columbus Home, and Columbus Home