Nov
21
Qualifying for a Reverse Mortgage
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In America, our seniors are in a crisis. Health-care costs are at all time highs, including prescription drugs and normal living costs. Some seniors are opting to skip their prescriptions to pay for groceries, others are rationing their drugs to last twice as long. If you or a loved one have taken these drastic steps, or if you have gone back to work in an attempt to afford living, you should know what thousands of seniors know.
Many seniors have started to tap into the equity they have built throughout the course of their life. Many seniors have decided to take out a reverse mortgage. You may be thinking you don’t qualify or that it is a complex process. Rest assured, it is a process that will have you breathing a sigh of relief and it is far easier to qualify than most people think.
The requirements are:
Age 62 or older
You must be a homeowner.
Equity in your residence
Getting a reverse mortgage will certainly make life easier to live, if not far more enjoyable. It is important to know that you are still responsible for your home. All maintenance and upkeep is yours to do or hire and proper insurance must be adhered to. Taxes are also the responsibility of the homeowner as well.
Reverse mortgages offer tremendous benefits to those that quality, but they are not appropriate for everyone. If your property is in poor condition, it may not qualify as homes need to be inspected and meet specific standards through either the loan company or the government. If you are planning on selling or refinancing a home within the next few years, a reverse mortgage is also not for you.
Nov
21
Access Money With Home Equity Loan And What is Low Doc Home Loan?
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The home equity loan has a lot of names like Revolving Line of Credit, a Line of Credit Home Loan, as this type of loan is admired due to its features and flexibility
With a greater credit limit a credit card will be issued. A home equity loan is a credit facility is available with first finance or mortgage on a residential property. I gives permission to withdraw money to a certain limit the equity you have in your home) at any time.
Maximum flexibility with your finances is allowed by a home equity loan.
With an intention to carry out renovations, invest in shares, or purchase other’s investment property or bill payments you can utilize this line of credit.
Know about the pros and cons prior you make a decision on a Home Equity Loan:
Advantages of a Home Equity Loan
A home equity line of credit suggests a great deal of low interest rate than credit cards A advantage not available with credit cards is that the Interest paid on your home equity line of credit is tax deductible Flexible payment options - The interest for a pre-determined amount of time or pay interest plus as much or as little principal as you want as Some lenders offer interest only equity lines of credit which gives you the option to pay. Accessibility - You can access money either by cheque or through ATM. In full or on a monthly basis repayments should be done Extra repayments are allowable at any time Cheque book facilities are accessible if desired
Cons of a Home Equity Loan
With the prime rate the interest rate of a home equity line of credit varies. There is also a limit that is further added to the interest rate, which is fixed and is firm at the time of application classically it attracts higher interest rates than your typical variable rate loans
Low Doc Home Loan: If you are self employed and don’t have your financials in order, don’t scratch your head wondering if you can obtain finance or not.
A good solution is offered by many lenders is a simple and easy way to get a loan called LOW DOC Home Loan. Self employed borrowers are the targeted people to attain these Low doc home loans because they are not in a situation to provide full financial statements and income proof.
Standard and Premium ‘low-doc loans’ are offered by many lenders in the market as these large number of lenders are assuming the increasing trend of low doc home loan products with an option of fixed or variable interest rates.
With access to hundreds of lenders and the leading home loans on the market, you can be sure with DirectMoney HomeLoans, we will find the best rate and featured home loan for you.
Depending on the lender, some require you to pay for Lender Mortgage Insurance (LMI) if your loan reaches 80% loan to value ratio (LVR). Due to the risk associated with self employed customers some lenders also charge a higher interest rate for these products. After a period of time, or when customers are able to show their tax assessments, then the lender may reduce the interest rate for you.
Consider the following pros and cons before you decide on a low doc home loan:
Pros of Low Doc Home Loans
Financial proofs not needed. Instead of tax returns Simple statement of financials are necessary Non-traditional and irregular income sources are considered
Cons of Low Doc Home Loans
Higher interest rates and fees are to be paid Appropriate to higher repayments your cash flows might suffer