What is a Reverse Mortgage?
A reverse mortgage is a loan available to homeowners 62 or older who have a good amount of home equity in which they can borrow against to receive a lump sum, monthly payments, or a line of credit to use. Unlike most loans, most reverse mortgages do not require the borrower to make monthly payments on the loan. Instead, the entire balance becomes due if the borrower passes away or sells the home.Some readersWhat are Non-Qualified Loans?
A non-qualified home loan is a home loan that does not follow the provisions of the Dodd-Frank Act. For instance, if you do not qualify for a home loan using traditional income documentation, some non-qualified home loan options might allow for alternative income options.Some readersWhat is a FHA Loan?
An FHA loan is a mortgage which is insured by the Federal Housing Administration (FHA). FHA loans are popular with first time buyers due the little down payment required (3.5%) and a lower required credit score of 580 or higher.Few readersWhat is a Home Equity Line of Credit (HELOC)?
A home equity line of credit, or HELOC, is a line of credit given based on the equity of your home and is a lien on your property. Equity lines function very much like credit cards but carry much lower rates in comparison to a revolving charge account.Few readersWhat are Impounds?
Setting up an impound account (also known as “escrow account”) with your loan payment servicer is a way to include property taxes and homeowner’s insurance in your monthly mortgage payment. With impounds, your mortgage payment will include a monthly amount for taxes and insurance. Then, your mortgage loan payment servicer will make the lump sum payouts to the tax assessor and insurance company when the premiums come due every year. When setting up your impound reserve account, the lender has tFew readersWhat is an ARM (Adjustable Rate Mortgage?)
A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. The loan may be offered at the lender’s standard variable rate/base rate.Few readersWhat are Conventional Loans?
Conventional Loans are loans funded by private lenders and are not insured or backed by the government. Conventional loans continue to be the most popular type of loan in the United States.Few readers