Mortgage Financing

Florida offers some of the lowest refinancing rates on the market. So if you wish to refinance your home mortgage, a Florida lender is the best option. You can also research on the Internet to get the best rates.

Refinancing a mortgage has several benefits. A decision to refinance a mortgage comes only when you can save two or more percentage points on interest. But it is another burden that you have to carry for so many years. So it's better to clear all your doubts regarding the rates before you finalize on one. Or you may be thinking of getting a fixed-rate mortgage with attractive terms instead of your current adjustable-rate mortgage.

You can also consolidate your first and second mortgages into a single mortgage by refinancing. The benefits are many, but the difficult part is to get the best mortgage refinance rate.

Currently, the rates in Florida have touched a 20-year low. So it's easy for you to get a mortgage even if you have bad credit. You can improve your credit by paying installments on time. Some lenders check your job security and income sources before they agree to refinance. So it's easy to get refinance options in Florida even if you have bad credit.

There are two types of mortgages: fixed-rate and adjustable-rate. Cashing out is another type of refinancing that allows borrowers to borrow money against their own home for paying off the loans. Refinancing is available in Florida for all types of loans like conventional loans, VA loans and bad credit loans.

Florida Mortgage Rates provides detailed information on Florida Mortgage Rates, Florida Mortgage Rate Refinance, Florida Mortgage Interest Rates, Best Mortgage Rates In Florida and more. Florida Mortgage Rates is affiliated with Florida Interest Only Mortgages

All home owners know about the traditional 30 years standard mortgage loan. The newer concept of biweekly mortgage has triggered a series of debate as to which one is superior to the other. For us to understand the complexity of how these mortgages work and which one is more beneficial than the other we need to analyze the basics of each type of mortgages.

The traditional mortgage has been there for a long time. The lenders loans the principal amount on the mortgaged property and the borrower is expected to pay the loan amount along with interest as monthly installment for a specific amount of years. The standard loans vary from 10, 15, 20 to 30 years depending on the principal amount and the credit history of the borrower. It goes without saying that the borrower usually ends up paying more than the principal amount by the end of the loan term.

Bi-weekly mortgage is a newer concept; this is gaining immense popularity among many people as they believe that this is the easiest way to pay back their mortgage. The mortgage working is fairly simple the lender loans the principal amount on the mortgaged property. Unlike the traditional mortgage, the borrower pays half as much every two weeks. In a whole year, there are 52 weeks. As a result there will be two months a year when the home owners can make three payments instead of two. As a whole, per annum there will be 13 monthly payments made. Since the payment is bi weekly and the amount comparatively low, home owners firmly believe that this is the most painless way to pay off their mortgage loan. The most important advantage of bi-weekly mortgage is that it allows home owners to pay off the mortgage faster, and also since the principal loan amount is paid much more rapidly than the traditional loan home owners can save a lot of money by the end of the mortgage period.

On the outset, the bi-weekly mortgage definitely looks better than traditional loans. However, there are many aspects the home owners fail to recognize before they decide to opt for a bi-weekly mortgage plan. The first and foremost thing is the upfront fee which most money lenders expect the home owners to pay in order to avail the bi-weekly mortgage plan. Before opting for bi-weekly mortgage plan it is always advisable to consult a mortgage broker who can give you complete details on how these loans operate. It is also necessary for the home owners to ask about the various upfront fees that have to be paid in order to avail bi-weekly mortgage loan.

When getting a mortgage, borrowers fill the lead forms in person at the lead provider's office or online at the lead provider's website. Except in the case of Internet Mortgage and Telemarketing Leads, the lead providing companies collect the leads during office working hours, and then mail them out at night to brokers. This means that there's at least an overnight's delay in the lead transfer process.

If, on the other hand, Mortgage Brokers have their own web sites that can gather Mortgage Leads, will it not be better? Today, Lead Proving Companies are bringing in the advantages of Web based technology to their Broker clientele as follows: They help the Mortgage Broker, who is registered in their site, with efficient Lead Generation and Management Systems. These are basically web pages that can be handled by the brokers independently. They are designed in such as way that they cover all lead distribution needs as desired by the broker.

By using such Lead Generation and Management Systems the broker can manage the content, upload an Online `Form of Request for Loan' filled in by the Borrower, track visits [knowing the number of people who visited the web page], advertise the website in search engines, allocate the desired choice of lead format - html emails, .pdf email attachments, text files, fax, etc. and accomplish many more tasks.

Several independent Mortgage Brokers and Broker Firms go in for this type of system due to its obvious advantages. Broker Firms use the system with an option to work as an exclusive system [where leads reach one loan officer] or non-exclusive system (where leads reach many loan officers) by using their networking facility.

Though these leads cut an edge over other type of leads, these are more expensive, as such systems include a custom designed web site, a few hours of internet and search engine marketing. Lead Providing Companies usually charge a setup fee for the site and a fee per lead with a minimum stipulated fee. Let's take an example. A Lead Provider charges $1,000 for the website and $1 per lead per day, or a minimum fee of $30 if the leads are less than 30 per day. If the Broker's web site mobilizes 50 leads per day, the monthly fee comes to $50. If on the other hand, the site collects only 25 leads per day, the monthly fee is $30. The price includes electronic data transfer just like in paid web based email services.

Though relatively expensive, speed, confidentiality of data and the degree of freedom to the Broker render Exclusive Mortgage Broker Leads unique and popular.

Telemarketing Mortgage Leads are faster and more personalized than Internet Mortgage Leads. How do Telemarketing Mortgage Leads work? Let's take an example. Barry wants a mortgage loan. Barry, the borrower, fills the Form of Request for Mortgage Loan on a Lead Provider's website. Tina, a telemarketing representative working for the Lead Provider Company, contacts Barry over the phone, verifies all the important aspects in Barry's Lead (i.e. property type, loan type, and state in which the property is located) and confirms whether Barry is really interested in the loan.

Immediately after this, she puts Barry on hold and phones Larry, a loan officer attached to a lender, and provides him with Barry's name, type of loan sought, and phone number. Larry, the loan officer, uses this phone number to preview the data associated with Barry, by using a standard web browser in his computer. Usually, lender firms have toll-free numbers to call.

If Larry is really interested, he phones Tina. She takes Barry off-hold and introduces him to Larry, the Loan officer. As soon as this is over, she disconnects, leaving Barry and Larry to continue with the sales process.

Exclusive Telemarketing Mortgage Leads involve a telephonic network of the Borrower, Lead Provider and the Lender. An increasing number of call centers, which began a few years back with Business Process Outsourcing and Information Technology Enabled Services, are proving their effective presence in Mortgage Industry as well, by functioning as Mortgage Lead Providing Intermediaries.

In Telemarketing Leads, the Lead Provider thus plays a very central role between the Borrower and the Lender, by handling the most important introductory phase for just a few minutes on the phone.

As it stands, it is difficult to say a business lead is exclusive at all. Even if a company only sells the lead to one loan officer, insurance broker, or some other type sales person, the average consumer looking for information on a product or service fills-out approximately three online forms.

So, when you start talking about "semi" or "non" exclusive the waters get even murkier as to how many individual companies or sales professionals are competing for that prospect. Depending on the company, a semi-exclusive prospect may be sold from 2-5 times. However, each company adheres to a different set of ethical practices that will realistically affect how many times it is actually sold.

Some companies will actually sell a mortgage lead, for example, more times than they say the it is actually sold. Some will not only sell it as a "mortgage lead", but then will also sell it again as a "loan modification", "debt", or some other lead type, etc. Some companies don't care who they sell the it to and will knowingly sell to a lead aggregator who then re-sells the it multiple times. So, realistically you can have one prospect that is contacted 15-20 times!

From my experience, companies that do their due diligence and do some checking into who you are buying your leads from will afford the best opportunity of purchasing the lead product that you think you are getting. Also, make sure to actually speak with someone at the company prior to any purchase. Companies that try to sell you leads by just logging into a website and making a purchase may not be looking out for your best interests.

Personally, I can get a good feel of a company and what type of business model they follow by speaking to a representative of that company. Is the sales person just trying to push you into something that is going to make him the most commission or is he really listening to your needs and trying to find the best solution for your particular situation? There are some good companies out there, and once you find the right one you can create a healthy flow of quality leads that will maximize your ROI.

Mortgage SEO is a very important component to your internet marketing budget. Consumers today are weary of doing business with mortgage brokers following the near collapse of the Financial Services Industry due primarily to soured mortgage portfolios. The Sub-Prime mortgage market was left in complete shambles and nearly bankrupted the entire financial system. Consumers today need professional advice from seasoned professionals who will guide them through the mortgage process.

After all, everyone at some point or another will need a mortgage loan. The need will never diminish, the market will never go away. We all need a place to live. Mortgage Companies will always be able to find people to Lend to. The only question is: How do we find them?

Mortgage SEO will enable your firm to drift away from major Lead providers such as Lending Tree and Get Smart. Their Leads are overpriced and their "Success Fees" are extreme. No other lead providers in any other industry charges a "success fee" for what amounts to just forwarding a name and email to a mortgage company. This practice is short of criminal and it is unbelievable that so many mortgage companies have allowed this fee to become standard for such sub-standard quality leads.

Search Engine Optimization for your Mortgage Company will ensure that your Loan Officers and Brokers get a daily stream of EXCLUSIVE, qualified leads that will be local to your area. Potential Customers who search Google prefer to deal with Local brokers as the relationship will be that much more personal. Even though it is unlikely that they will ever sit in your office, people feel more confident doing business with a Mortgage Company that they can visit should they need to speed up the process or get reassurance.The mortgage process is perhaps one of the most complicated and paper intensive processes that most people are put through. Catering to the local market, especially if your firm is in any of the major metropolitan areas, will serve as a huge advantage.

Through SEO, more than ever, it is easier to provide customers with professional service and competitive loans that will enable your Loan Officers to close more loans at the end of the month and have higher levels of customer satisfaction and provide the absolute best return on your internet marketing investment.

The mortgage industry is extremely competitive in the sense that large banks, small savings and loans as well as mortgage brokers are actively competing for your potential customers business as well. By doing your own internet marketing, and enabling your website to rank higher in the search engines though Mortgage SEO (Search Engine Optimization) your Loan Officers will have the ability to close more loans with less competition and higher levels of customer satisfaction.

If you are a loan officer or mortgage broker, you may be on the market for mortgage leads. You may even be considering purchasing them exclusively.

Purchasing exclusive mortgage leads may not be such a bad idea if you want to cut out your competition.

Most mortgage lead companies will sell their leads up to four times, and some as many as five times. This is known as selling the lead non exclusively.

Not only will you want to purchase your leads exclusively, you will also want to make sure that the lead is being sold in real time, or what is known as fresh.

A real time lead is one that arrives in your hand within seconds of the potential customer hitting the submit button on the on line application.

If a lead company is selling you old or recycled leads, than you can hardly call these leads exclusive because it has gone through the hands of many loan officers before it reached you, so be careful.

The most effective way to make sure you are receiving real time exclusive leads is to call the lead company you are considering investing with.

Speak with someone in customer service and find out where they obtain their leads and how they are delivered, as well as how quickly they are delivered.

Your best bet is to go with a lead company that obtains their own leads through sites in which they own and operate.

Steer clear of the mortgage lead companies that buy their leads from third party vendors. There is no way to know how many times that third party vendor sold that lead to other companies or loan officers.

Remember, you work hard for your money. So if you are not happy with the answers you receive from customer service, than more than likely you will not be happy with the leads they send you.

Like any other home owner in America, Wisconsin residents want low mortgage rates to make home ownership more affordable or to consolidate consumer debts for lower monthly payments. But when shopping Wisconsin mortgage rates with various banks and mortgage brokers how can you make sure that you get the rates that you were expecting? Well if you ask a few important questions at the start of the loan process you will be assured a smooth loan process from start to finish.

Questions You Should Ask Your Mortgage Lender

Fixed Or Adjustable Rate: Many companies when quoting Wisconsin mortgage rates will quote very low adjustable mortgage rates instead of fixed rates. This is done to get people to call in and find out about the very low rates they heard advertised. This is a deceptive marketing practice and companies the advertise like this should be avoided.

Loan To Value: Many mortgage rates advertised today are based on a loan to value of 80% or less. So if you do not have at least 20% equity in your home then you will not be eligible for the lowest rates available.

Rate Lock: Some mortgage companies will quote lower rates then the competitors based on a shorter rate lock period. The standard rate lock for Wisconsin mortgage rates is 30 days. But by locking it for say 10 or 15 days the mortgage company can offer a slightly lower rate. The drawback to this is that if your loan is delayed and the lock expires you may have to re lock at a higher rate if the market worsens

Closing Costs: Always ask if the rate is being quoted with or without origination points. Sometimes mortgage companies will offer very low mortgage rates but the borrower will have to pay points to get those rates. Generally one to two percent of the total loan amount will need to be paid in the form of points to get the lower rate.

Whats The APR: The APR or annual percentage rate is a reflection of the cost required to borrow. An APR that is more then .6% or higher then the mortgage interest rate can be a sign of very high closing costs. If the Wisconsin mortgage rates you are being quoted have a high APR ask the mortgage company for a good faith estimate that show the fees you are paying.

By asking these questions when shopping for the best mortgage rates you should be able to narrow your choices down to a two or three mortgage companies you fell comfortable with and make your final loan decision with a little less stress!

To learn more questions to ask your Wisconsin Mortgage Broker and more info on how to shop for low Wisconsin Mortgage Rates visit our website.

Texas was one of the last states to allow homeowners to take out home equity loans. Laws going back to the nineteenth century strictly prohibited home equity lending, as legislators feared that unscrupulous lenders would take advantage of homeowners for the purpose of seizing their homes through foreclosure. This made it impossible for citizens of the Lone Star State to use their equity for home improvements, debt consolidation or paying medical bills, as homeowners in other states may do.

In 1997, the Texas constitution was amended to allow homeowners to borrow against their home equity. The amendment allowed for traditional term loans, lines of credit, and reverse mortgages, but did not allow a line of credit on a reverse mortgage.

In a reverse mortgage, owners of homes who are at least 62 years of age may borrow against the equity in their home. They need not pay the money back until they die, move or sell the home. Reverse mortgages have become quite popular in the last few years, especially in areas like California, where homeowners may be cash poor but may have a lot of equity in their homes. Nationally, nearly 90% of homeowners who take out a reverse mortgage do so with a line of credit. In Texas, however, the only options are a lump sum or monthly payments. There are several advantages in taking a reverse mortgage in the form of a line of credit, rather than a lump sum. The most significant is the fact that interest is only due when money is actually drawn from the credit line. This saves the homeowner substantial amounts of interest over the life of the loan when compared to a lump-sum payout. Reverse mortgages have been quite popular in Texas since the law was changed to allow them, but lenders say that the demand should increase substantially if lines of credit are allowed.

The Texas Legislature has recently approved a constitutional amendment that will allow lines of credit.for reverse mortgages, and this amendment is expected to be on the ballot in Texas this fall. This bill is expected to pass easily, and once it does, Texas may become the leading state in the country for issuing reverse mortgages.

©Copyright 2005 by Retro Marketing.

Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.

Article Source: http://EzineArticles.com/?expert=Charles_Essmeier

What is a reverse mortgage? It is a tax free loan from your home equity that doesn't have to be repaid as long as one of the customers on the loan still lives in the home.

Who can qualify? Generally, homeowners over 62 with home equity.

What if I already have a regular mortgage balance? If you qualify for a large enough reverse mortgage you can pay off the regular mortgage and eliminate the mortgage payment.

How much cash can I get from a reverse mortgage? It depends on the home value, your age, which plan you select and the current interest rate. Generally you can get 40% to 70% of the homes appraised value.

Which is the best plan available? Your prospective lender should show you, and explain the details about each plan available. The finance rate and cash benefit should be shown for each. Currently most customers select a Home Equity Conversion Mortgage (HECM) because it often gives the most cash and the lowest rate.

What purpose can the money be used for? It's your money to use for whatever you wish.

What are the choices for how to receive the cash? You can choose to get a line of credit, monthly income paid to you, a lump sum of money, or a combination of these.

Are reverse mortgages regulated by the government? Yes, HUD strictly regulates these loans. There are safeguards built in including restrictions on rates and fees. There is also a requirement for the homeowner to receive free counseling from an approved, independent counselor, prior to a reverse mortgage.

Is this a good program for all senior homeowners? No. For example it may not be good for a homeowner that expects to move out of the home in the near term. The free counseling service will cover the points to consider before making a decision.

If you are considering purchasing a property for yourself, to let to tenants, re-mortgaging, or looking at any other form of mortgage, a visit to the mortgage advisor is probably on the cards. There are different types of mortgage advisor and it is important to make sure you get all the relevant information before making your mortgage decision.

A tied mortgage, or single lender advisor may start off working in a bank or building society. Mortgage advisors working in this kind of role and establishment are only able to offer you products available from their employer, this should be made clear at the outset. They can recommend the best products available from their firm for your situation and help you with application paperwork, and any other questions you may have. However they cannot help you with advice relating to other products or information outside of their company.

Multi-Tied mortgage advisors can be found mainly in estate agents. They work with a limited number of mortgage lenders and will recommend from a select few mortgage lenders that they work with. While multi-tied advisors can offer you more choice than a single lender mortgage advisor your choice is still very limited and you may not be getting the best deal available to you.

An independent mortgage advisor will normally work in their own office or sometimes within an estate agent, but never as part of a bank, building society, or other similar set up. The main difference between the single lender and the whole of market independent mortgage advisor is that the independent advisor should have access to the entire market - every mortgage from every lender that is applicable to you. The tied advisor can only offer you a very small proportion of what is on offer as they can only offer products from their own company.

When you make an appointment and visit your mortgage advisor you may want to out aside at least an hour or two, and take in proof of identification and proof of earnings for the last 3 months or so. They will need other bits of information as your application progresses, but this should be all for your first meeting. You may be dipping your toes into the mortgage market for the first time to see how the land lies, and if a mortgage is even possible in your current circumstances. Alternatively, you may have sold your last house and be ready to buy another having found the most suitable mortgage arrangement.

Your mortgage advisor will need to ask a number of questions appertaining to your financial situation, so if, for example, you are unsure what the balance of your credit card is or how much your car lease costs per month, find out and if possible take the paperwork with you to the mortgage advisor. The first visit is sometimes called a Fact Find, as it is a research session on behalf of the mortgage advisor to build a clear picture of what options are available in your situation. Your advisor will need to determine how much you can afford as a deposit and as a monthly payment, with all other outgoings considered such as loans, bills, insurances, and any other regular payments you have to make.

One of the biggest considerations to make when choosing your mortgage is the fees involved. This is a tricky area and you may find yourself paying much more than you expected via mortgage penalties if you do not fully understand the agreement you are signing. To ensure you find the deal best for you be sure to talk to a whole of market independent mortgage advisor who can give you the big picture and help to find you the best deal available.

Philip Loughran writes on a number of subjects from travel to law, automotive to education. For mortgage advisor in Portsmouth and mortgage solutions Portsmouth he recommends Choice Financial Solutions.

When it comes to choosing a mortgage the options can be overwhelming. Getting the right mortgage advice is essential for making the best financial decisions for your future, and it can be a bit if a minefield. In this article we hope to help you understand why it may be in your best interest to speak to an independent financial adviser, and the pitfalls of not having enough advice to make an informed decision about your mortgage choices.

You can obtain mortgage advice from a wide range of sources; your estate agent, your bank, your building society, or an independent mortgage advisor. Many banks, building societies and estate agents are what is called a 'tied adviser', their advice and the products they are allowed to offer you can only come from one source. Many banks and building societies only wish to sell you their own products, they do not work on the behalf of other companies. Bank or building society employed mortgage advisers will usually be able to provide you with a range of options for your mortgage, sometimes with slightly preferential rates if you are already a customer. However, this is a very limited range of options compared to the wider market and you may not be getting the best deal you could.

Estate agents will often be restricted to a partner or panel of mortgage brokers with whom they work, they may be tied advisers or multi-tied advisers, meaning they have access to a limited number of companies. Mortgage advisers in estate agents are usually able to offer advice from these partners and panels, providing more choice than a bank or building society, but not always giving you access to all available options as they are limited to offering mortgages from these select companies. However this is not always the case and some estate agents will be able to offer access to the whole of the market. Estate agent mortgage advisers will often charge a fee for their services, this may range from £95 to £500 but is entirely dependent on their company policy and other factors.

Independent mortgage advisers may operate differently to the aforementioned businesses. By being independent these advisers have access to the entire mortgage market, and can offer you the widest possible choice for your situation and requirements. They are not tied or bound to one or a number of mortgage brokers, and can access deals and offers from any mortgage company. This helps to offer you the widest choice and the best deal for your mortgage.

Independent mortgage advisers will rarely charge a fee to the applicant. Their mortgage advice fee is paid by the mortgage lender you decide to use, unless you choose to pay the adviser yourself and claim the commission from the lender later. Usually the first meeting you have with an independent mortgage adviser is free of charge, where they work out the best mortgage deals for your requirements and fully explain their fee structure before progressing to arrange a mortgage for you.

Philip Loughran writes on a number of subjects from travel to law, automotive to education. For mortgage advisers in Portsmouth and independent mortgage advice Portsmouth he recommends Choice Financial Solutions.

The mortgage industry is a very competitive one, so if you are on the market for a mortgage, or refinancing your existing one, you may want to consider getting a few quotes on line.

By obtaining a few quotes on line, you are in no way committing yourself to anything.

Due to the competitive nature of the mortgage industry, it really wouldn't hurt to post an on line application at a secure sight, and allow for four or five loan officers or brokers to compete for your business.

Obtaining an on line quote is very simple, not to mention, very safe. When going through this simple process, you are asked for very limited information. At least enough for a loan officer to get a general idea of what you are looking for.

One of the many benefits of obtaining on line mortgage quotes is the fact that you barely have to do anything except point and click. Once this is accomplished, you will receive anywhere between three and five phone calls, usually within forty-eight hours from loan officers who are interested in doing business with you.

Another benefit of having four or five loan officers assess your situation is that you will have the option of choosing the best rate and loan program to meet your needs and your budget.

When shopping for on line mortgage quotes, most loan officers understand that you are shopping around and speaking with other mortgage companies.

The last thing a loan officer wants is for you to take your business to their competitor. This puts them in a situation to find you the best rate and program available.

Shopping for an on line mortgage quote is definitely worth a try, and costs absolutely nothing. Remember you are not committed to anything, so why not give it a shot? Good luck.

Central Mortgage Company seems to be one of the banks who are more cooperative in modifying investment property loans. Compared to other bigger banks, where the loan modification applications are mis-handled easily due to the complex of bank's internal procedures and policies, Central Mortgage's system is more streamlined and efficient.

However, in order to take advantage of their better system, your mortgage modification applications still need to be in the right hands. If you find the phone representative does not offer much help in advancing your application, prepare to escalate the issues to receive right attention. An indication of the process going nowhere is when your files have been transferred here and there without no one having a grip on what is going on.

Central mortgage requires the borrower to fill out the bank's own financial worksheet. They do not consider self-made forms even if you have included all the necessary financial information such as asset, liability, and monthly expenses for them to evaluate your case.

The company usually requires forbearance period before making the final decision on the modification. Toward the end of trial period, if the borrower has followed the forbearance arrangement, the bank should automatically send the loan modification approval documents to the borrower. All the borrower needs to do at that point is to sign, get the documents notarized, and mail them back.

The process is very smooth once the application is in the forbearance stage. Unlike many other banks, from where the borrower may continue to receive late notices in mail or phone calls during the trial period, Central Mortgage's system is up to date so that the inconsistent communications do not confuse the borrower.

RealInvestorTips.com specializes in investment property mortgage loan modification (Chase / Wanu, Wells Fargo / Wachovia, Citi, Bank of America / Countrywide, American Home Mortgage, and more), short sale for investors and rental management. The website also provides extensive resources on various owner financing tools like Lease To Own / Lease Purchase Option, Land Contracts / Real Estate Contract, and latest real estate trends.

Even though you might be acquiring a HUD reverse mortgage, the real loaning is executed by a private bank. The lender is certified by the Government to offer this type of loans. Even so, be sure you get a HUD reverse home mortgage.

There are many benefits to acting so. First off, you will get the best deal possible as the lender's financial obligation is fixed. There is a maximum amount of money they can loose. Anything in top of that is covered by the insurance that you pay as part of the reverse mortgage.

Second, in order for a reverse mortgage lender to become HUD licensed, it must abide by hard prerequisites dictated by HUD. HUD has strict rules that all lenders must comply with if they want to offer this type of loans. Also, they must go through ongoing auditing to make sure that they are acting in a legal and ethical way.

Among the guidelines set by FHA, there is one demanding that potential borrowers receive a free counseling session. In this session, you can have any questions answered by a third party. You can use this session to ask any questions. Make a list of all the questions you have before going to the session. That will guarantee tat you don't forget any questions.

FHA has also set limits on how much money can be borrowed by using a reverse mortgage. The amount varies depending on the area of the country where you live. You can check with your reverse mortgage broker to find out more about these limits. In most cases, it's just over $300,000.

If you want to learn more about how a reverse mortgage works, you can go to seniors reverse mortgage. In this website, you can find many informative articles about how reverse mortgages work and how to know if a reverse mortgage is the best choice for your personal situation.

Actually the idea of the group reverse mortgage is the same as the group flats, which especially the young people favour. Belonging to the group allows a person to live in a bigger house and enjoying better life quality, than the life in a one person, small flat would offer. Sounds promising, or what?

1. The Target Of The Reverse Mortgages.

The original target of US Federal Government, when it decided about the reverse loans was to arrange a source of extra income for those senior citizens, which were cash poor, but equity rich. Actually the target was to improve the life quality of the seniors by offering a way to receive more money.

The group reverse mortgages improve the Government idea by offering each senior in the group better living standards, because the group can buy bigger and higher quality house or flat compared to one senior. I wonder, why the limit in this case is down to three persons?

2. Why The Group Is Better?


One of the main problems of some seniors is, that they suffer loneliness. Another problem is, that their standard of living is low and they live in the too small homes. When seniors build a group of two or three, they will solve many problems with one hit. They get company, they get better social life, they get better homes and they can share many things.

3. What Are The Qualifications For Three Seniors?

If we forget the human relations and think seniors only as the borrowers, the qualifications are easy to fulfil. Each must be at least 62 year old and owner of the home, i.e. the title must contain three names. All seniors must use the home as their primary residence. And there must be home equity left.

4. You Have To Meet The Counselor.

Because the reverse loan rules can vary state by state, it is useful to meet the counselor to get the correct guidance. This meeting must be prepared with the long question list. The counselor is an expert, who can also tell about the alternatives, because he does not try to sell anything.

5. Benefits To The Group Of Three.

As you may recall, the reverse mortgages will not be paid back untill the last borrower will move away, sell the home or pass away. There is no monthly payments whatsoever, but the loan capital, interests and all the costs will be apid back, when the running time is out and the home will be sold. The borrowers have to take a so called mortgage insurance.

The idea is, that if the home selling price will not cover all the costs in closing, the missing part will be taken from the mortgage insurance. If you have a group of seniors and you are thinking about the reverse mortgages, think about the many benefits it will bring to you. It is slightly more costly than the usual mortgage, but on the other hand it will solve many problems, i.e. brings some extra cash for your senior group.

The reverse mortgages are for those seniors 62 or over, who have fixed incomes and who own their homes, where they live permanently. The reverse loan makes it possible to tab a part of the home equity either as a lump sum, as periodic payments or as a credit line.

As the reader may know, the reverse mortgages have zero payments during the running time without a special agreement. If no costs or fees are paid during the running time, a reverse mortgage tax deduction is not possible. In this sense the reverse loan and the traditional mortgage behave differently.

1. The Reverse Mortgage Tax Deduction Is Possible, If Some Fees Or Interests Are Paid.

This is natural, because how a taxpayer could deduct something, which he has not yet paid. Usually the benefit of a reverse loan is that no costs, capital nor interests are paid during the loan running time. All are paid, when the running time is out, a senior moves away or pass away. Then the capital , costs and the interests are paid using the selling price of the home, or if it does not cover everything, the mortgage insurance, which is obligatory. Now a senior or the heirs can use the reverse mortgage tax deduction.


2. There Is One Exeption.

No rules without exceptions. A wise senior, who takes a reverse loan thinks a situation, when he wants to prepay the loan. If this is not in the agreement, it is not possible but if it is, a senior can pay the capital, fees and the interests away, or just part of them, and get the reverse mortgage tax deduction. How wise! This is a very useful option, because you never know, how and when the financial situation will change to the positive direction.

3. What, If A Borrower Will Pass Away During The Running Time?

If this happens, a borrower cannot deduct the paid interests or fees. That is the duty of the relatives or heirs. However, the sum can be quite big one, especially if there has been a long running time. As a summary we can say, that the reverse loan is different compared to the usual mortgage. The great principal is, that every single sum must be paid before it can be deducted. This general rule decreases the chances to a minimum. However, a wise senior will take this as a part of the reverse loan agreement.

Reverse mortgage provides an excellent financial option for seniors that need some extra income during their retirement years.

These loans are taken out against the equity that seniors have in their home, offering cash without having to worry about any payments.

One of the main benefits of going with a reverse mortgage is that seniors are able to get cash that can be used to go on a vacation, pay for everyday living expenses, or even purchasing a nice vacation home.

The payments can be made in a lump sum, as a monthly payment, or a credit line may be extended. Of course, before deciding that this is a viable option for your needs, it is important to learn more about the reverse mortgage rules that exist today.
Reverse Mortgage Rules For Qualification

First, this option comes with several reverse mortgage rules for qualification. Before you can take out a reverse mortgage against the equity in your home, you do have to meet qualifications set by the government.

To be eligible for this option, you will need to be at least 62 years old. You also need to live in the home you’re using for the reverse mortgage at least six months out of the year. Some equity in your home is needed as well to be able to take out this type of a mortgage.
No Reverse Mortgage Rules For Credit Qualifications

For many types of mortgages, your credit plays a big part in whether you’re able to get the loan you need. However, there are no reverse mortgage rules regarding credit qualifications when you take out a reverse mortgage.

Whether you have perfect credit or bad credit, you still have the ability to qualify for this type of loan. The reason that credit will not matter is because the loan is guaranteed by the value that you have in your home.
New Reverse Mortgage Rules On Home Value

The amount that seniors can get with a reverse mortgage will depend upon the value of the home they have. However, if the home is valued at quick sale price, it can definitely lower the amount that seniors can borrow.

With new reverse mortgage rules, the amount that can be borrowed actually depends on the appraised value of the home. This is important because it allows seniors to borrow more money, since appraised value is much higher than the real market value in most cases.

Since the crash of the housing market, home values have plummeted, but this doesn’t have to affect the amount you are able to borrow when you go with this type of a mortgage.
Reverse Mortgage For Purchasing a New Home

One of the options seniors have when they take out a reverse mortgage is using that money to purchase a new home. Sometimes seniors decide they want to live in a smaller home, they want to live closer to relatives, or they want to purchase a vacation home that they can enjoy.

This is possible and the reverse mortgage rules are very flexible in this case. In many case, these mortgages help to eliminate the need for a down payment on a new home and they are not required to sell the present home.

With these new reverse mortgage rules, it offers the ability to enjoy a new home while allowing both homes to increase in value, offering a great profit.

Whether you want to purchase a new home or you simply need some money for living expenses during retirement, reverse mortgages are an excellent option to consider. With the new reverse mortgage rules, you have even more options and flexibility. Keep in mind that you will need to pay taxes, your insurance, and home repairs while you have this loan.

Since the economic downturn has occurred, many seniors have faced some tough financial situations. However, a reverse mortgage can provide the financial help needed to provide them with a better standard of living.

If this is an option you want to consider for your own financial needs, make sure you meet with a quality counselor and discuss all your options so you can make the best possible decision for your needs.

Commercial mortgage financing is available for all kinds of commercial properties. Buyers need money to finance apartment buildings, convenience stores, funeral homes, gas stations, historic sites, hospitals, motels, industrial parks and every other conceivable kind of commercial property or business.

When a potential buyer is interested in a commercial financing transaction, he or she should seek out a service-oriented lender who has demonstrated expertise in the field. The right lender to transact commercial financing will be able to save the borrower time and money by striving to give their clients the financial benefits of a highly effective transaction without exorbitant loan fees.

The first step in commercial mortgage financing begins with a discussion with a banker about the possibility of procuring the necessary funds to make the transaction. It helps to have an established relationship with a mortgage banker, but this is not a requirement.

Commercial real estate varies widely by a number of different factors. A property in a busy downtown business district will naturally be more expensive than a rural location with little foot traffic. The size of the property and the materials with which it was constructed are also considerations. Therefore, it is safe to say that no two commercial mortgage financing transactions are the same.

A banker should be able to offer his or her perspective on a realistic price point for the transaction, as well as other important advice. He or she should be questioned extensively about the projected cash flow that will potentially arise from the transaction, the down payment, purchase price and the desired mortgage interest rate.

The banker is not the automatic answer to the financing dilemma. There may be more viable options available. That said, it is not advisable to automatically discount one's local mortgage banker. The point is to check out all of the options that are available and to choose the one that is best suited for the borrower's specific needs. It is a good idea to compare lending rates among several financing options and to find out specifically how much each institution or lender is willing to lend for the chosen property. The borrower should also carefully examine the terms and structure of the money being offered.

Once a lender has been chosen, the borrower should make an offer on the specific property in question. If the lender has been chosen in advance, this will make the prospect of commercial mortgage financing for the borrower's offer more attractive to the lender. This has the possibility of providing more room to negotiate.

It is important to negotiate with the seller during the financing phase of a transaction. Keep in mind, however, that the seller has certain objectives with the sale as well, so it is advisable to negotiate in a way that will provide both the buyer and the seller with satisfaction. When negotiating with the seller, the buyer should keep his or her lender up on any progress from beginning to end so that the commercial mortgage financing will have a good outcome.

Today more than ever Realtors play an even more critical role in determining financing options for their clients. Even though many Realtors are not familiar with the intricacies of today's lending environment. Sure, they know it's tougher, but do they know how to help? Here is a top ten list that Realtors can use to aid in the mortgage process for your clients.

#10 - Don't even look at one property prior to receiving a pre-approval from a competent lender or mortgage broker. There once was a time when pre-approvals were silly because EVERYONE got approved. But now you need to review every piece of borrower income and asset documentation with a fine tooth comb to make sure there are no landmines within those documents and others that could potentially kill your transaction.

#9 - Condo's are tough. Before you show a client a condo, make sure it is an FHA approved condo or has the ability to be financed for FHA. If your client is not an FHA buyer, then you should certainly make sure the condo project is lendable. Is there any litigation currently pending? Is there enough reserves? Is there a special monthly assessment that could affect borrower qualification and debt to income ratios?

#8 - Ask the borrower to immediately start gathering their financial documents. As noted in #10, borrowers need to complete this process prior to looking for a home. As a Realtor you should make sure you aren't wasting time showing buyers properties that cannot afford.

#7 - Participate in the pre-approval process. Sure many of you just want to see the baby and you don't want to hear about the labor pains. But seriously, the more involved you are in the financing side, the easier it will be for you on the real estate side. Plus you relay to your clients your expertise in finance as well as real estate.

#6 - Determine the long term goals for your client with this property. The sooner they start thinking about investments, exit plans, or how long they plan to hold and sell, or turn a primary residence into a rental property, the easier our job will be to find a suitable mortgage that fits the borrowers plans.

#5 - Get a pre-approval letter that can be easily modified. If your lender has prequalified a buyer to $500,000 but you are making an offer at 450,000. You certainly don't want to tell the listing side you have more room. Get a WORD document and change the purchase price lower. This is a great tool when you are working up an offer at midnight and your loan officer has decided to finally get some rest.

#4 - Understanding closing times is critical for Realtors when determining how to present an offer. If you are making an offer for an REO property and the REO property manager wants a 15 day escrow and you have an FHA buyer then you need to know that won't happen. Financed buyers are up against cash buyers all day, and for some sellers, a cash deal at a lower offer price is more desirable.

#3 - Work with your lender. Calling your lender and screaming at them to, "Close this deal now!!" This does nothing to help close the deal. The Loan Officer much like you has to close loans to get paid just like you. So next time, when you approach the lender, ask first is there anything I can do to help, and then if you get no response, yell and scream.

#2 Know the market volatility. Rates go up and down everyday and sometimes several days. It is important your client understands this or their mortgage shopping experience will far more difficult as the borrowers calls different lenders in different days, that rates and terms can be far different. It is important that we all understand it is far more important to work with a lender that can close the deal as opposed to a lender that can lie and promise a rate that doesn't exist.

#1 - Work with competent Loan Officers. All Loan Officers should have a NMLS license number and that should be listed on their business card and marketing materials. You should also be concerned if the Loan Officer used several different company names, won't share their daily rates, or doesn't call back on a timely basis. Relationships are great but you cannot trade great service and error free transactions for substandard service. Don't forget to Google your Loan Officer and their company, because if you do not know your mortgage company they could cost you your commission.

Top Ten Mistakes Realtors Make in Today's Market By: Michael A. Foote, CMB

With over twenty years experience in mortgage lending, a Certified Mortgage Banker Designate (CMB) from the Mortgage Bankers Association of America, and billions in funded loan experience, I can assist you and/or your clients with the most important financial decisions related to your residential and commercial real estate.

A second mortgage may come in handy and help you out of a jam when you are strapped for cash. A second mortgage as the name suggests is a second loan taken on another property. It means that the property that the loan is taken against already has a mortgage on it. So how does a second mortgage work? Is there any advantage to taking out a second mortgage? These are the question that we will answer in this article. We will try to understand the concept of second mortgage loans and what you should consider before you decide to take out a second mortgage.

When a person has already taken out a loan on a property and he takes out another mortgage against the same property then the new loan is called the second mortgage loan. The second mortgage loan is subordinate to the first mortgage. This means that if something happens and you are no longer able to pay your mortgages then after foreclosure the first mortgage would be given priority, once that has been paid off then the money left over is used to pay the second loan. This is why second mortgages are considered to be more risky by lenders. If you stop making payments for the second mortgage the lender of the second loan has the right to foreclose even if you continue to pay the first mortgage. If you stop paying your first loan and the lender for your first mortgage forecloses then your second mortgage will be cleared of from any money that is left over. A second mortgage is usually taken out on the amount of equity you have on your house. To better understand what this means lets take a look at an example. Suppose that your home is evaluated to be $75 thousand and you take out a first mortgage loan against this property. You then start paying this mortgage off a few years later you find your self in the need for more money. By this time you have already started paying off your first loan and the balance left on it is $60 thousand. This means that you have paid $15 thousand and thus own that much of the house. This fifteen thousand is considered as your equity. You can take out a second loan on this amount. Another situation may be that you have taken a first mortgage of only $50 thousand even though your house was evaluated at $75 thousand. In such a case you can consider getting a second mortgage loan.

Second mortgage loans can be very handy if you are in need of extra money or want to consolidate your debt. The interest on a second loan is always higher than that of the interest on the first mortgage however it may still be lower than the interest of some other loans like credit cards etc. You should take care when you are looking at second mortgage loans as you will be putting your house at more risk. Try to get a second mortgage loan that has a fixed interest rate.

According to e-AmortizationSchedule.com mortgage amortization is the reimbursement of principal from scheduled mortgage payments that exceed the interest due. The scheduled payment paid by the borrower less the interest equaling amortization. The loan balance declines by the amount of the amortization, plus the amount of any extra payment. Negative amortization occurs when the scheduled payment is less than the interest due whereby the balance goes up.

The Fully Amortizing Payment on FRM and ARM:

The fully amortizing payment is the monthly mortgage payment that will eventually pay off the loan at term. On a fixed rate mortgage (FRM), the fully amortizing payment is calculated at the outset and remains constant over the life of the loan. On the other hand, on an adjustable rate mortgage or ARM, the fully amortizing payment is constant only when the interest rate remains constant. The fully amortizing payment changes only when the rate changes.

Standard Mortgage Amortization:

In a standard mortgage, tax and insurance payments are shown in the amortization schedules, if made by the lender and the balance of the tax or insurance escrow account. Strict and rigid rules apply in the payment requirement regarding the standard mortgage. Even if a single payment is missed the late charges accumulate until the payment is made up.

Simple Interest Mortgage Amortization:

The interest is based on the balance of the day of payment on a simple interest mortgage, which is calculated daily. If payment were made on the first day of every month in both cases, it would come out the same over the course of a year. However, if a payment were late staying within the usual fifteen-day grace period under the standard mortgage scheme, one would do better with that mortgage.

Every home owner wants the best deal for their mortgage and residents of Wisconsin are no different then other borrowers across the country. In order to get the best rates a mortgage broker is probably the preferred way to get the best deal on Wisconsin home loans. While 99% of all mortgage brokers are reputable you should keep in mind that there are some that are down right bad ones out there as well!

Before you even put a pen to paper or give your social security number to a Wisconsin mortgage company you should ask them a few key questions that will help you gauge their business practices. Although there are many questions you can ask a mortgage company the most important things you will want to know about a mortgage company or broker should include but not be limited to the following areas.

How long have they been in business- With the recent real estate boom many mortgage companies popped up with the goal of making fast easy money. These are the companies that will more then likely do things that could cause concern. But just be cause a company is new do not discredit them right away but instead base you opinion on a few other factors.

Can the Provide References- Past clients are one sure way to get honest feedback about the business practices of a mortgage company. Any honest company will gladly provide you with a list of references to call.

Any mortgage broker that makes an effort to avoid questions or attempts to double talk their way out of the conversation should be avoided. Instead find a broker who will answer all of you questions to the fullest and make you feel comfortable when working with them.

In United States of America, there are basically three types of Reverse Mortgage; namely, federally insured, single purpose, and proprietary. To know which one will be helpful to you let's discuss them one by one.

Federally Insured Reverse Mortgage

This type of loan is commonly known as Home Equity Conversion Mortgages (HECM). This type of loan is costlier type of loan. It is suitable for homeowners who prefer to stay in home for longer duration. If owner is planning to stay in home for shorter duration, then upfront cost can be really very high. These types of loan do not have any special requirement and are available anywhere.

Single-Purpose Reverse Mortgage

This type of credit is being offered by the state government, local governing bodies and non-profit society. This type of loan is not easily aware and there are possibilities that it is not prevalent in your city also. Hence, check for it once. The single-purpose reverse mortgages are of very low cost and are good for people with low or moderate income. These funds are used for

* Home improvement
* Property taxes
* Health expenses

Proprietary Reverse Mortgage

This type of credit can be availed from a private bank or any company offering this service. They do not include any type of social security or medical benefit. It is the easiest form of getting the loan against home.

As per your requirement you should take the loan. But still if you are in dilemma of knowing which one will suit your needs better call a reverse loan advisor. Especially in Texas, you can find various Texas reverse mortgage agents take their help. But it always wiser to go for an experienced Reverse mortgage Texas mortgage advisor. He will guide you in the right direction by telling which type of loan is suitable for you. Further they will tell you the eligibility criteria, advantages and disadvantage of taking the credit.

For more information on Texas reverse mortgage, visit http://www.reversemortgagerx.com

Article Source: http://EzineArticles.com/?expert=Manoj_Salwani

In the past several years, reverse mortgage loan has become one the most useful product in terms of providing financial security to the senior US citizens. What is a reverse mortgage? As it name tells, it is merely the “reverse” of regular mortgage loans. Simply put, in a regular mortgage you make monthly payments to the lender but in a reverse mortgage the lender pays you without you having to pay it back for as long as you live in your home. The loan is reimbursed when you die, sell your home, or permanently move out of your home.

“Why shouldn’t a senior just pull out on a regular mortgage loan rather than a reverse mortgage?” being a senior, you may be struck with this notion many times, but it would be a good thing if you realize the potentials of using a reverse mortgage loan over a forward mortgage.


Both the reverse and forward mortgages allow you to maintain the home ownership while you pay back the loan with interest. The only difference lies in the method of repayment. Here we’ve emphasized a few differences between reverse mortgage and a regular one:

* You have to make monthly installments while paying back a regular mortgage, this way you reduce debt and build up your home equity—whereas with a reverse mortgage you don’t have to make any sort of monthly payments, and the entire loan amount along with the interest has to be paid back when the homeowner dies, sells the home, or moves from it permanently.

* You need a solid credit score and income requirements to qualify for a forward mortgage, but no such requirements are needed in case of a reverse mortgage.Reverse mortgages basically help those who are house-rich but cash-poor.

* There are strict income check rules before you actually meet the criteria of a regular mortgage, but you need no cash for a reverse mortgage. Even if there is no money to pay the loan when the homeowner dies, the bank will simply seize the home. But there is an exception to this case as well, if the heirs of the deceased decide to pay the loan amount; the home stays within the family.

* Reverse mortgages are only available to senior citizens of 62 or above, while in forward mortgage there is no such age condition but it requires a firm income statement and job consistency. The conventional mortgage loan takes up the income while the reverse mortgage loan considers the value of the home.

These points will help you determine the best kind of loan suited to your needs. However, if you are a senior US resident, there may be many suitable options available to you if you opt for a reverse mortgage. It’s always better to check up with professional reverse mortgage lenders, who can guide you properly in making the right decision.

Some people avoid filing bankruptcy because they feel it will ruin their chances of obtaining credit and loans in the future. Others file bankruptcy, and then don't even bother to try and get credit afterwards for fear of denial. No matter which camp you fall into, there is something you need to know--you should be able to get mortgage refinance after bankruptcy.

Why Refinance?

Refinancing your Wisconsin mortgage after bankruptcy gives you an opportunity to establish a new credit line and a good payment history. Both of these results will be detrimental in your quest to bounce back after bankruptcy. If you do decide to refinance and can manage to keep up on the payments, you may be able to repair your credit in as little as two years and boost your credit score to the Wisconsin average of 699.

Guaranteed Post-Bankruptcy Approvals

When you start shopping for a mortgage refinance after bankruptcy, you will see ads for many different lenders offering guaranteed loan approvals. While these offers may seem too good to be true, they're probably not. There are many lenders that are dedicated to working with Wisconsin borrowers who have poor credit or bankruptcies on their credit report.

Saving Money

Now that you know that you can get an approval for a Wisconsin mortgage refinance after bankruptcy, you are probably wondering whether or not you can save money on your loan. If you are current on your mortgage payments, you should be able to find lenders willing to offer you fair rates and terms. You may even be able to qualify for some of the special deals that online lenders provide, including initial rate breaks and deferred payments.

Visit Wisconsin Lending Center [http://www.wisconsinlendingcenter.com] to see our Recommended After Bankruptcy Mortgage Refinance Lenders Servicing Wisconsin [http://www.wisconsinlendingcenter.com/badcredit-afterbankruptcymortgage], whether you are looking for home purchase, refinance or a home equity loan.

Since the Texas constitution contains technicalities that prevent this on a home in Texas, there is not a true HECM for Purchase in that state. In the future, legislative changes and Constitutional amendments may make the HECM Purchase possible, but that could take as long as 3 years from now. Seniors must consider other options if want to buy a new home.

The reverse mortgage is a great benefit to seniors who own their own home but need more money than their social security provides them, and the HECM is a program that allows seniors over the age of 62 to purchase a new primary residence using the proceeds from a reverse mortgage. The program has been around since 1989, but it is only recently that the FHA, a division of the U.S. Department of Housing and Urban Development (HUD), approved the HECM for its purchase program. This means that seniors have a government insured option for buying their home. The HECM for Purchase takes the reverse mortgage a step further and puts that money directly toward the purchase of a new home that is more suited to their needs, such as closer to family or more manageable in size.

The Texas constitution does not allow the purchase program because it stipulates that the homeowner must already be on the title of the property prior to taking out a reverse mortgage. Instead, a senior homeowner could purchase their home, then pay themselves back using the proceeds from a standard Reverse Mortgage. There are some stipulations that could prevent this action, though, such as seasoning requirements of 3-12 months required by some lenders.

There are a few other options for seniors in Texas, besides the HECM for Purchase.

They can still obtain a reverse mortgage as homeowners in other states can. The reverse mortgage can help seniors who are struggling to manage their rising medical bills and other expenses during their retirement on top of mortgage payments. The program allows these homeowners to convert equity in their homes to a tax-free income, without mortgage payments, and without the risk or reality of having to sell their home or sign over the title.

Opportunities for Reverse Mortgages are greater than ever right now, and seniors in Texas should not feel discouraged because of this one technicality. They should look at the alternate solutions for reverse mortgages. In fact, the U.S. Department of Housing and Urban Development (HUD) recently raised the reverse mortgage limits to $625,500 to help stimulate the economy and provide immediate relief to senior homeowners facing unaffordable payments.

If seniors in Texas can wait a couple of years, their options for reverse mortgages will continue to increase to the same options that seniors in other states have. As of now, there is a lack of verbiage in the Texas State Constitution to allow HECM for Purchase. Because we have to amend the State Constitution to be able to offer HECM for purchase, the earliest an HECM for purchase in Texas would be allowed is 2012. The Texas Legislator only meets approximately once every 14 months, so the quickest this can be brought to a vote is in 2010 for a 2011 ballot.

Article Source: http://EzineArticles.com/?expert=Robert_Griffin

Mortgage companies in Florida are professional and regulated organisations involved in the business of money lending to prospective clients who may be looking to purchase a property. The Florida mortgage market though has taken a bit of a beating over the last couple of years with the credit crunch, so times are harder for buyers if they haven't got a large deposit or particularly good credit. However, there are always companies looking for new business and if they found your circumstances and application to be favourable then they will be happy to move forward with your application.

The mortgage lenders can act as agents between the client and lenders or specifically as the lender itself, dependent on the circumstance. They can also offer refinancing options for current homeowners who may be looking to free up some of their capital in the short or long term. Either way, you should be looking to speak with a reputable Florida mortgage lender so ask your local realtor if he has any recommendations to offer. In the meantime here are the top 3 Florida mortgage lenders in no particular order.

1. Florida Mortgage Corporation. These guys were established in 1989 and is a member of the better business bureau and hold an A* rating with them. They have all manner of solutions regardless of your circumstances. Definitely worth looking at when trying to find a Florida mortgage lender.

2. Transcon Lending Group. This company offers a huge variety of mortgage options from 100% mortgages, reverse mortgages, refinancing and much more.

3. Mark Foreman Finance. This company specialises in providing Florida mortgage lending to expat buyers. The expat level of investment in Florida accounts for a significant percentage of the total business so I though it relevant to include some specialist expat FL mortgage lenders. These guys are in face America's No1 mortgage broker for expat buyers.

Many people, who wonder how does a reverse mortgage work do not understand the word reverse. So, when with the usual mortgage a borrower pays to the lender monthly, the reverse mortgage lender pays to the borrower. And the key thing is, that there is no monthly back payments. That is how does a reverse mortgage work!

1. Can You Qualify?

Yes, if you fulfil the qualifications. First, you must be an American, age 62 or over and own a home, where you have equity left. And you can also use the reverse mortgage to buy a new home and to use cash or the equity of your old home as a down payment. These are the basic rules how does a reverse mortgage work.

2. The Idea Is That You Get Cash, So You Decide, How The Lender Will Pay You.

The reverse mortgage is meant to help you in your daily life. This means that you have the freedom to decide, how the lender will pay you. And that of course depends on, what are your needs.



The alternatives are as a lump sum, as a monthly payments, as a credit line or as a combination of all these. That is how does a reverse mortgage work.

3. How Much You Can Borrow?

There are these factors, which influence on that. Your age, the appraised value of your home and the interest rate. We can say, that the older you are, the more expensive is your home and the lower the interest rate, the more you will get. However, the situations vary state by state.

4. There Is A Compulsory Mortgage Insurance.

The idea of this insurance is, that the lender nor you will not meet any troubles with the back payment. If it happens, that the selling price of your home cannot cover the loan capital, interest and the costs, the difference will be paid from the insurance.

On those cases, when the selling price is bigger, the difference will be paid to your heirs. That is how does a reverse mortgage work. By the way, the reverse mortgage will be paid back, and all the costs, when you move permanently away.

Not sooner. There is still one important element and that is the compulsory counseling. It means that before you get approval for your application, you have to meet the counselor. In the real life, this is a very useful meeting, because these counselors are high quality experts and you can get very useful advices.

As you see, the reverse mortgage loan can help your daily life in many ways by releasing cash money from the equity of your home. All this money belongs to you, because you have saved it during many years and now you want to use it for the necessary needs.

Before understanding all about exclusive mortgage leads we will first try to define mortgage leads and then we will proceed further. This article will provide you with all the basics that you need to know about exclusive mortgage leads with its advantages and will help you identify the differences between exclusive mortgage leads and Non-exclusive mortgage leads.

Mortgage is generally defined as a method of using property as security for the payment of a debt. Many mortgage lead generators are available in the market either online or offline to help mortgage consumers to pay their debt. So, the mortgage consumer will browse through the net for internet mortgage lead generators using search engines. By filling up a normal mortgage form, the mortgage consumer's details will be passed on to the mortgage lenders who are willing to lend loans. The mortgage lenders will then sort those leads and get in touch with the mortgage consumers for loans. Among the various mortgage lead generators available nowadays finding the right place really would be tiring. But it is advisable to go through many companies offering mortgage leads and then settle on one reputed mortgage lead generator and mortgage lender.

The true definition of exclusive mortgage leads is defined as the leads that are only sold once to a mortgage lender. When mortgage consumers buy mortgage leads on exclusive basis, the same leads will not be sold to any other mortgage lead generators or mortgage lenders. A great writer once said "East or West, home is the best". It is human nature that all of us would like to own a beautiful home. For some it's easy but to most others it may seem to be the ripe grapes. Hence the prime motive of these mortgage lead companies is that, they will help those disabled to fulfill their dream.

In common, when a prospective homeowner approaches a mortgage lender for a mortgage loan, she will be asked to fill up a 'Form of request' for the loan, Known as the 'Mortgage lead'. After carefully assessing the application and if it qualifies, the mortgage lender approves the loan. Since this is time consuming, people seek the help of mortgage lead generators to develop the lead and submit it to the mortgage lender. Hence in this way, the process of mortgage lead generator to send the mortgage lead form signed by the mortgage consumer to only one appropriate mortgage lender for mortgage loan is called as Exclusive mortgage leads.

Let us now look at some differences between exclusive mortgage leads and non-exclusive mortgage leads. Based on the advantages and disadvantages of exclusive mortgage leads, the following points are some benefits and main differences from that of non-exclusive mortgage leads.

The benefit of exclusive mortgage leads is that the mortgage consumer will face only less competition making the close rates higher than other leads. But in non-exclusive mortgage leads the competition is higher.
The data is shared only with one mortgage lender and hence the mortgage consumer has no choice to select some other mortgage lender if it's an exclusive mortgage lead program. Coming to Non-exclusive mortgage leads the mortgage consumer's details are shared with many mortgage lenders so that the consumers will have more options to choose from.
Non-exclusive mortgage leads are less expensive than exclusive mortgage leads but the confidentiality ratio is high in exclusive mortgage leads than non-exclusive mortgage lead. Hence to conclude if the mortgage consumer has a good credit profile, the chances of his or her dream home coming true are greater. Exclusive mortgage leads are a gateway through which mortgage lead generators and mortgage lenders build their business and reputation.

A senior uses the reverse mortgage to supplement the social security, to pay the suddenly increased medical bills, to pay the home repair or to buy a home for a child. The reverse mortgage has the equity of the home as the only guarantee and a senior has not to present the credit score or the income information.

1. How Much Can I Borrow?

The reverse mortgage program has strict rules about the amount of the loan. The absolute maximum is $ 625.000. The factors, which will determine the loan amount are the age of the borrower, the appraised value of the home and the interest rate level.

We can say, that the older the borrower is, the higher the appraised value of the home and the lower the interest rate level, the more a borrower can get. The whole loan sum will be taken against the equity of the home.

2. Am I Eligible?

The Federal Government planned this loan type for seniors, who are at least 62, who own their homes, where they have equity left and who live in that home permanently. The lender will not ask any credit nor income information.

3. How Does The Lender Pay Me?

The borrower, a senior, can decide, how the lender will pay to him. The alternatives are the monthly installments, the lump amount, the credit line or a combination of some or all of these. A senior can use the money as he will, there is no reporting. Of course the need of a senior determines, how the payments will be done.

4. When I Will Pay Back?

The idea of the reverse mortgage is to arrange more disposable cash to a senior without monthly back payments. All costs, capital and interests will be paid back, when the loan will be closed. This happens, when a senior will move away, sell the home or die.

Then the home will be sold and the reverse loan and all the costs will be paid to the lender. A senior has to take a mortgage insurance, which will be used, if the home selling price does not cover all the costs. The borrower can never owe more than the value of the home.

5. Is My Home The Right Type?

The reverse mortgage program accepts almost all home types. A senior must have a single family home, a 1 - 4 unit home, which includes at least one unit for the borrower, a condominium, which is approved by HUD or a manufactured home, which meets FHA requirement.

It was possible to tell only the main features of the reverse mortgage in this short article. To get more detailed information about the program, please contact the federal reverse loan counselor, who can tell you, whether the loan fits to your financial needs.

Juhani Tontti, B.Sc., Marketing. A senior can get great benefits from the reverse mortgage loan. The reverse mortgages include pros and cons, which a senior has to know. Visit: reverse loan

The reverse mortgage has gotten a lot of attention lately, but it appears that many seniors just don't trust them. Part of the reason this is true is because there have been stories of a reverse mortgage scam floating about. But are they true, and is it even possible to be scammed?

What constitutes a scam?

It is possible for someone to be unhappy, but not scammed. So when considering a reverse mortgage scam, what would have to happen to make it a bad thing?

Doing a short term reverse mortgage

Except under very specific circumstances, the loan should be used for a long term loan. The fees can be expensive and just don't make sense on a loan you don't plan on keeping.

The scam here is if a mortgage lender is trying to get you to do a reverse mortgage and you don't need one, or won't benefit long term from it. Usually, this is just to generate their paycheck, and that is not a good reason to do the loan.

The exception is if you are trying to avoid foreclosure or other financial hardships. In these cases, a short term reverse mortgage may save you from losing your home or help to do necessary repairs. This is not the norm though, and it should be used cautiously if these are the reasons.

Using proceeds for other investments

It is against the rules for an investment professional to get you a reverse mortgage and then sell you an investment based on the proceeds from the loan. The proceeds from a reverse mortgage should almost never be annuitized, since this defeats the purpose of making your equity "liquid".

Investment professionals are making a double paycheck if they do this, and that is why it is not allowed. It is actually OK if the Investment Company and Lender are two different companies, but it is still discouraged.

Giving money to family

This is a touchy area, but what I am talking about is lending money to family that want to invest it in speculative investments. For example, lending money to a grandchild to flip homes or start a business. This will create hard feelings most of the time. More likely than not, you will find that you will never be repaid.

If you want to gift money to your heirs, it is OK. But try to avoid lending money that you need, for someone else to invest. What most consider acceptable is to pay for a college education or help with a down payment on a home.

The reverse mortgage itself is not a scam, but how the money is used can be. Keep in mind that the equity in your home is there to help you through retirement and lending it or giving it away will just leave you short if you don't get it back.

The best way to avoid a reverse mortgage scam is to make sure the money (and loan) benefits you, not the people asking you to do it. There is nothing wrong with the lender making a buck, or you being generous and gifting the money. But the bottom line is it should benefit you the most. After all, it is the last "savings" that most people have. It should be guarded vigilantly.

After many years of originating loans for seniors, I have come across a reverse mortgage scam once or twice. It is never the fault of the reverse mortgage, but more the person doing the loan, or family members that want some of the money. See more examples of things to look out for on our site.

The Medicaid eligibility rules are clear. They allow $ 2.000, a car and a house, period. If a senior receives a lump-sum from the reverse mortgage, he or she may become uneligible to the Medicaid to pay the nursing home care.

This is a problem about which the press does not speak so much. The reverse mortgage does not have influence on the Medicare or Supplemental Security Income. The Medicaid eligibility rules are actually quite complicated. The monthly payments, which a senior receives from the reverse loan can make him uneligible to Medicaid.

1. If The Nursing Home Waits After 5 Years, Meet An Expert.

If you consider to take a reverse mortgage and you see, that after 5 years you will need nursing home care, you better be wise with your moves.An expert must understand and know exactly, what practices are used in these cases and in this state concerning Medicaid and SSI .



2. Your Local Municipal Housing Authority.

If a reverse mortgage seems dangerous thinking the Medicaid eligibility, it is also wise to seek for alternatives. The local municipal housing authority can help you, maybe the deferred payment mortgage is an option. You can also visit the National Council on Aging website to find guidance.

It is very, very important to be in a constant contact with the experts to get the correct information how to handle the reverse mortgage application. Many people, especially those seniors, who are close to 62, do not think the Nursing home future and thus cannot take that thing into their plans. But an expert can, talk with him!

3. The Money Transfer.

If a senior transfers the money to another place, so that he is not anymore the asset owner, Congress has established a period of ineligibility for Medicaid. It is important to follow the Congress rules to be able to avoid penalties.

4. No Problem, If A Senior Can Manage Without Medicaid.

The secret is to be able to forecast the future income and living costs. The income part is relatively easy, because they are flat, but what happens, if a senior get some oblogatory, extra and regular bills, like the increased medical bills?

One solution could be to take a reverse loan against the home equity, but to leave a major part of the equity untouched. If in the future a senior will need more disposable cash, he can refinance the reverse program and to take more loan. The reserve equity and the risen house prices make this possible.

If you are a loan officer or mortgage broker, you may be on the market for mortgage leads. If you have no interest in sharing these mortgage leads with anyone else, you may want to consider buying them exclusively.

If you decide to buy your leads exclusively, you can plan on paying a bit more for them. As opposed to buying old or recycled leads in bulk or at two dollars a lead.

An exclusive mortgage lead should not only be exclusive to you and you only, it should be sold to you in real time.

A real time exclusive mortgage lead is one that is delivered to you within seconds of the applicant filling out the on-line application.

If a real time mortgage lead is any older than a couple of hours, it can hardly be called real time, let alone exclusive.

My suggestion to you if you are considering buying exclusive mortgage leads would be to take your time and research the mortgage lead companies you are thinking about investing your money in.

Remember, you work hard for your money, so make sure the mortgage lead company you invest in will get you a return on your investment.

Be sure to call the mortgage lead company and speak with a live person.

Ask the customer service representative where they obtain their leads, and how they are delivered. Also, ask what the time frame is between the potential customer filling out the online form and you receiving it.

If the answers do not live up to your expectations of what real time exclusive mortgage leads should be, than move onto the next mortgage lead company.

Keep searching until you find the mortgage lead company that guarantees they will sell the lead to only you, and that they will deliver it promptly. If they can't have it at your e-mails door step within seconds of receiving it, than keep searching until you find the company that will. Your time and money will be well spent, trust me.

Different reverse home mortgage lenders have different rules, but generally a senior must have equity left in his home, and own capital, against which the reverse home mortgage loan will be taken. This equity works as a guarantee.

1. The Target Of The Reverse Home Mortgage Is To Help Seniors.

This principles can be seen in all terms concerning the reverse home mortgage loans. They are very easy to get and very flexible loan types. They offer financial help for immediate needs of the disposable money, for bigger needs, like the home repairs or help for occasional needs in the form of the credit lines. A senior can select, how he wants a lender to pay him.

2. The Reverse Home Mortgage Loan Will Be Taken Against The Equity Of The Home.

There is a clear philosophy. When seniors have saved money during the years, when they worked hard and paid their mortgages, now is the time, when they can use part of these equities for their new financial needs. So the money goes in a reverse way.

This philosophy has also other benefits. When the reverse loans are taken against the home equities, seniors do not need a good credit information nor monthly incomes. This is great, because now those seniors, who have very limited incomes can get a loan and to increase their monthly incomes.

3. Your Credit Information Has No Meaning.

People have bad credit scores for many reasons but for seniors they have even worse influences. The reverse mortgage loans are excellent for senior people, who have bad credit information and additionally difficulties with their monthly expenses.

The bad credit information is especially bad for a senior. But a bad credit information is one thing and the home equity is another thing. If a senior has a home equity left, he is lucky, because that and only that he can use to get a reverse mortgage loan.

4. Your Income Information Has No Meaning.

Can you imagine, that you can get a loan without any regular monthly income and even if your credit record shows very bad figures? This is one of the great benefits, which the reverse home mortgage loan has. The reason is, that the whole loan is taken against the equity of the home and you can never owe more than the value of the home. So the incomes have no meaning.

As you can see from the above qualifications, the reverse mortgage loans are almost for every senior. The key point is, that a senior owns a home, where he has equity left. That is the own capital against which the reverse mortgage loan is taken.

It is also extremely important that a senior meets the reverse mortgage counselor, who is an expert to guide him about his special needs. That is the most important meeting, because the loan comes almost automatically. The counselor meeting requires, that you will prepare yourself correctly and make lots of questions.

As the baby-boomers prepare for retirement reverse mortgages are going to be the next mortgage boom according to most analyst. The baby boom began in 1946 and continued through 1964. During those 19 years, 76 million people were born. As this segment of America begins to retire a large portion of them will need to rely on their homes equity to make "ends meet." How they access that equity will be the mortgage industries primary focus in the years to come.

The traditional "forward" mortgage has the homeowner borrow the money by way of a traditional mortgage or home equity line and make payments on that amount. The homeowner takes the money, places it in a safe interest bearing account and uses the money to augment their income. The interest that is earned on the money is used to supplements the monthly payment that the homeowner has to make. The problem is that the interest shrinks as the money is used and the mortgage payments stay the same.

Reverse mortgages have actually been around since 1989, but their popularity is skyrocketing as a result of the wave of baby-boomers that are retiring. These mortgage products are safe and beneficial when applied to the right homeowner and circumstances. Lendfast.com recommends that borrowers use FHA-insured Home Equity Conversion Mortgage (HECM) when considering these mortgage products. Getting a reverse mortgage from the private sector may include more headaches and costs. However, as with financial product, there are some dangers that you need to be aware of; here are the top three reverse mortgage pitfalls to lookout for.

1) Repayment and Forfeiture – Most, if not all reverse mortgages will not require you to make payments or repay the loan for as long as you live. Once you pass on your heirs will have the opportunity to remortgage the debt or sell the house and repay the loan. If the home has equity above the amount owed to the bank your heirs will receive those proceeds. If the home is "upside down" your heirs have no obligation to repay the debt, but they will forfeit the home unless they pay the amount owed.


However FHA rules state: "When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender." The danger here is "no longer use it for your primary residence. This means if you have to go to a hospice, nursing home or intend to live in another home and use the house as a second home the bank will call the debt due. This is definitely something you want to consider before taking out a reverse mortgage.

2) Cost and Interest Rates – At the inception of reverse mortgages they were almost exclusively offered with adjustable interest rates. Adjustable rates are still standard practice and you are almost certain to be offered this option to begin with. Don't! There are fixed rate programs available now and at today's rates adjustable rates are only going to go up in the future. It's easy to be lured into an adjustable rate because lower interest rates in a reverse mortgage have higher monthly payments. If the interest rate increases your payment decreases, as does the time frame you have to draw on the mortgage. Just remember, adjustable interest rates are a gamble and Las Vegas wasn't built on winners.

A considerable downside to reverse mortgages is the high up front costs. This cost can be compensated by a lower interest rate over time, but some seniors choose other options to draw on their home equity. Reverse mortgage closing costs should be about the same as most loans except the 2% mortgage insurance premium that FHA charges to insure the loan. FHA insures the lender will be paid regardless of the home's value when and if the lender has to take over the property.

At Lendfast.com we have noticed that many homeowners are paying higher closing costs for reverse mortgages than traditional forward mortgages. We believe this is because most homeowners are unfamiliar with reverse mortgages and tend to not shop around as with traditional mortgages. This is why we recommend the FHA insured type of reverse mortgages because they have closing cost limits that lenders must abide by. Always get two quotes or use the "lenders compete" method to apply for a reverse mortgage. You should also read How Does a Reverse Mortgage Work an article that explains reverse mortgages better.

3) Upkeep, Taxes and Insurance – On traditional mortgages your escrow payments are added to your payment but they are subtracted from your monthly check on a reverse mortgage. Most of the time you will be shown the monthly amount you will receive each month BEFORE the escrows are taken out. This means that you could sign up expecting to get $900 per month and only receive around $700. Make sure you are given the monthly payment LESS your escrow payment. Like most mortgages you will usually be given the option to escrow or not to escrow, however the bank has a vested interest in your home. Meaning if you do not maintain your insurance and taxes as they deem responsible they can call the loan or force an escrow account on you.

When you consider that the bank is basically buying your home you can understand why they would want you to keep their property in good shape. The problem is that this loan is being made to senior citizens. As they age they may become unable to do the necessary maintenance that the bank requires."Good shape" can mean thousands of dollars out of pocket for the homeowner when you consider what a new roof or a fresh coat of paint costs these days. Ask the loan officer what the lenders policy is on maintenance and repair. You may want to take enough money up front to have future repairs taken care of so that your monthly payment stays the same.