Financial Planning Services Atlanta GA, Athens GA - Alberty Financial » News in Lending

Reverse Mortgage

Nathan — Fri, 17 Jul 2009 19:36:51 +0000

A Reverse Mortgage is a way take out some of the equity that is in your home, which is usually one of the biggest investments families have. Typically, a reverse mortgage is used to supplement the income of older Americans when Social Security income is not sufficient or expensive items arise.

Requirements to participate in a reverse mortgage are be a homeowner 62 years of age or older, own your home outright (or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan) and you must live in the home.

Those who have a reverse mortgage on their home receive monthly payments based on current interest rates, the homeowner’s age, and the value of their home. You can never be forced out of your home even when the payout amount goes to zero as long as your insurance and taxes are current.

In your estate distribution process the money paid out to you is returned to the lender and your heirs receive the balance.

For more information on reverse mortgages: http://www.aarp.org/money/personal/articles/revmortfactsheet.html

Owing More than Your House is Worth

Nathan — Mon, 29 Jun 2009 18:39:51 +0000

With the recent housing decline, coupled with the general economic decline, many Americans have become upside on their mortgage. That is, owing more than your home is currently worth. Those in this situation are in a tight spot, but do have some options.

Not the greatest options:

Selling the house: This is not the most attractive option because homeowners are likely to have a loan balance left over after the house is sold equal to the spread between what the house is worth and what is owed.

Renting the house: Along with housing prices, rental prices have also experienced a decline. In this economy you are doing very well to rent out a home that you are upside down on equal to your mortgage payment. Renting the home may not be the best option either.

The positive options:

Trying to refinance your home: talk to your lender about any options you may have to reduce your payment or restructure your loan.

Talk with a HUD Certified Counselor: There are government programs that can help those who are in homes they can no longer afford and you may qualify for them. (http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm)

Visit Hope Now: This is a site that provides guidance to avoid foreclosure.

Many homeowners will qualify for some sort of aide through government programs that are aimed at making housing affordable and the best way to find out what help is available for you is to contact a certified counselor.

Local Banks and Troubled Asset Relief Program (TARP)

Nathan — Thu, 18 Jun 2009 15:42:54 +0000

Many local and community banks may be able to benefit from the repaying of the Troubled Asset Relief Fund (TARP) funds by larger banks. Recently, ten big banks received approval to return a combined $68 billion in TARP funds to the government.

As the amount of money in the TARP reserve grows they will be able to lend that money back out, and much of it should go to local and regional banks (that want/need it of course). This would allow banks to make loans to the individuals and businesses in local communities and benefit the economy right in your home town.

Local banks are able to get to know you on a personal level and consequently are able to provide exceptional customer service and are able to get to know your plan for the loan proceeds. Local communities can really benefit from a strong local bank presence as loan officers get to know you and your plan and not just look at the numbers.

Home Affordability Refinance Program (HARP)

Nathan — Fri, 12 Jun 2009 12:24:24 +0000

The Home Affordability Refinance Program (HARP) has a program designed to allow those with mortgages they can no longer afford to refinance their mortgage with Freddie Mac or Fannie Mae with rates in the 5% range. This program is specifically aimed at those who have no equity in their home and even applies to those who are upside down on their loan.

There are a few stipulations to the program as outlined by Laura Sosa-Rocha, a licensed mortgage broker, “there are a few tricks to this program. If you have past mortgage insurance you must, most of the time, go back to your current lender, most new lenders/banks are not allowed to redo the loan if you have mortgage insurance or LPMI, which is lender paid mortgage insurance.”

The refinancing of these mortgages is not moving as swiftly as some would hope. Laura adds “most lenders are so backed up you are looking at two to three months in underwriting! Also, a lot of lenders cannot do a Freddie Mac refinance so people are sitting in underwriting for no reason because when they find out its Freddie Mac a lot of times they can’t even do the loan!”

Laura Sosa-Rocha is a Licensed Mortgage Broker and President of Truth and Lending, A Mortgage Corporation. More information can be found at http://www.truthandlending.com/

Home Affordable Modification Program (HAMP)

Nathan — Thu, 11 Jun 2009 12:47:17 +0000

Congress is passing so much legislation to try and get the economy back on track it can be dizzying keeping track of it all. Specifically to the housing and mortgage industry, several programs have been passed to restructure mortgages and make housing affordable for those with mortgage payments are unaffordable.

One Home Affordable Modification Program (HAMP) program targets those who have lost their jobs, experienced an increase in expenses, or some other hardship. According to Mark Hammond “There’s also a HAMP program for folks who have lost income where the rate can be as low as 2%. The mortgage servicer is required to modify the rate on the loan to where the payment is 31% of their current income.”

The cost to the borrower to participate in a HAMP program is zero. Hammond also warns “Don’t pay a fee to anyone for these services. The folks offering to “help” for a fee are the same ones who were pushing the bad loans a couple of years ago.”

Mark Hammond is a Certified Mortgage Planner with DTB Financial Services. More Information can be found at http://www.dtbloans.com/