Personal responsibility has been thrown out the window. You agreed to your loan terms, you made payments, you smiled at the idea of the great equity you would have when you sold your place. Uh oh, life happens! Times are tough and you did not count on the economy. So why not just walk away from the mortgage, you’ll get bailed out. Right? But now the government wants to become an enabler for you. Now a proposal has surfaced to allow judges to bring down mortgages or bring the principle down to a more reasonable level so you can make the required payments. Once you are 62 or over you may be able to qualify for a reverse mortgage where you are using the equity in your home and are then given payments by a lender on a monthly basis. These funds are tax free and can be used to help downsize your home or take a out a long term care policy. So many people over the age of 62 have homes that are owned outright or almost paid off and need cash to help for medical care or other bills. Oh wait, don’t forget about the neighbor who is doing ok, has planned for emergencies and would like to keep the value of his home, but you get to walk away. Or now your home is worth less and hence the rest of neighborhood comes down with you.
With a new economy upon us, I see nothing but opportunity; take advantage of these new lower interest rates, say in refinancing a home or just saving more. In fact Americans are saving more now than ever. Its still a little low, but it is improvement.
Borrowing money in today’s environment can be a great resource or get you into serious financial trouble. There are many types of loans that you can apply for such as secured loans where you place a certain amount of collateral towards the loan amount to assure the lender or bank that you will make the full payment. When applying for personal loans you want to make sure to read the disclosure statements and when the interest payments are due and what happens if you are late on a payment. Some personal loans have a generous grace period but others start to calculate interest the moment the loan is taken out. Oh, what to do?
Many people will use the mortgage on their home to pull out extra cash to help pay off some other higher interest loans. For this solution, you can even look to mortgage counselors who can help set up a loan modification program in order to help your debt situation. This can be a good idea since some of that interest on your home equity loan can be used as a tax deduction. Again be sure of the amount of points and closing fees you will have to pay. At sites like myvarefinance.com you can find links and resources to help you with your search. Through their site you can find info on home mortgages, financing, and links to current rates. You will want to see how long it will take to recoup your investment and start seeing savings if you have to pay closing costs. With the mortgage industry today things are more competitive and you can find some lenders who will waive the closing costs to earn your business. Search online and look for banks and lenders with good ratings and do not trust your money to just anyone.
Tags: mortgage 2012, reverse mortgage
Finance and Credit, Real Estate | Jeff Rogers November 19, 2011
By pvcwindows, January 7, 2012 @ 11:22 pm
nice info here, thank u
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