Change in Texas Law May Make Reverse Mortgages More Popular
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.First Time Buyer Mortgages ? Transforming Homeless into Property Owners
Having just settled in life, you are finding the rentals putting too much of a burden on your finances. Nevertheless, you continue the payments thinking that purchasing a home would be practically impossible. There are many expenses that one has to necessarily make in order to just make a bare subsistence. Though the list differs with each individual as each has a subjective concept of the necessities, it is difficult to accumulate enough savings to pay for a house.The following characterises most of the first time buyers. However, a surprise awaits them in the form of first time buyer mortgages that accept first time buyers with their inherent characteristics of financial weakness.It is wrong to believe that first time buyer mortgages are like any other mortgages, and have been so named by lenders to attract attention.
A first time buyer mortgage is designed primarily for the people who are buying homes for the first time. The method combines the features of mortgage along with...
First Time Buyer Mortgages ? Transforming Homeless into Property Owners
Mortgages > First Time Buyer Mortgages ? Transforming Homeless into Property Owners
Home Mortgage
For months now, you have been looking at houses and home brochures and
you have finally found it - the house that's just right. So now, you're feeling
anxious to buy your new home, move in, and get settled. But this is not where
your search ends. You still have one more important task to do and that is
getting a home mortgage.
Contrary to popular belief, getting a home mortgage is quite simple.
All
you need in order to make the right decision is to who where to look, what to
look for, and what takes place when you apply for a home mortgage. Knowing what
to expect, especially if you are a first-time homebuyer, may make it easier for
you to get through the process.
Where to Shop
Some people may think that once they have found the house of their
choice, their shopping days are over. Actually, choosing the house is only the
first phase of the whole process....
Mortgages > Home Mortgage
Boost Your Business with a Commercial Mortgage
Long term commercial finance, in the form of a commercial mortgage, offers many small and medium sized enterprises (SMEs) the ability to invest in their business with new technology, new or refurbished premises, or increased stock levels.In the past, it tended to be only larger organisations with a proven track record who could obtain commercial mortgages. A large number of younger/smaller businesses were unable to obtain this type of commercial finance and, as a result, many businesses have been forced to rely on expensive short term finance or left to use their owners' residential property as security.Fortunately, this gap in the market is now being targeted by specialist commercial lenders who are willing to serve the commercial mortgage needs of SMEs and owner-managed businesses. The problemIn the past, it has been difficult for small business borrowers, self-employed traders, and partnerships to raise...
Boost Your Business with a Commercial Mortgage
Mortgages > Boost Your Business with a Commercial Mortgage
How Can I Tell The Differences Between All Of The Home Loans On Offer?
There are literally hundreds of home loans available but lets just look at the three main categories.
- There are the Purchase Home Loans, where you are looking at buying a new home.
- You have the Refinance Home Loans where you could already be in a home but want to find a better deal.
- And you have the Home Equity Home Loans, where you want to tap into the equity you have sitting in your home that you can use for something else.
Mortgages > How Can I Tell The Differences Between All Of The Home Loans On Offer?
Home Equity Loan ? When Does Refinancing Make Sense?
For the last two years, interest rates have been much lower than anytime during the last thirty years. This has resulted in an unprecedented boom in real estate sales, home refinancing and home equity lending, as borrowers try to take advantage of these rates for the long term. But refinancing or even borrowing against your home's equity may not make sense for everyone. When is it a good idea to refinance your home? When is it not advisable? Traditionally, lenders advised homeowners not to refinance unless doing so would lower the interest rate on the loan by 1-2%. While anyone who can save 2% on their interest rate would almost certainly benefit from doing so, others might find refinancing worthwhile even with a smaller reduction in the interest rate.
Increased competition among lenders has brought the costs of refinancing down in recent years, so homeowners can realize a significant reduction in their home payments with reductions of ?% or so, depending on the size of their...
Home Equity Loan ? When Does Refinancing Make Sense?
Mortgages > Home Equity Loan ? When Does Refinancing Make Sense?
Adverse Mortgages May not Benefit the Consumer Warns Mias
(ContentDesk) March 22, 2006 -- MIAS (the Mortgage and Insurance Advisory Service) is concerned that the boom in the sub-prime or adverse credit mortgage market will not necessarily translate into a better deal for consumers.In the past, the worst excesses of the sub-prime market could be summed up as, the miss-selling of the most expensive and complex mortgages to some of the least affluent and financially-astute people.With so many high street lenders moving into this sector, including Alliance & Leicester and new arrivals such as DB Lending funded by Deutsche Bank, MIAS would hope that this would change. However, the old adage that increased competition is always a good thing for customers, because it brings down prices, may not apply in the adverse credit market. Commenting, Alistair Good, Managing Director of MIAS (http://www.mias-ltd.co.uk ) said: The increased profit margins of the adverse credit sector must be hugely...
Adverse Mortgages May not Benefit the Consumer Warns Mias
Mortgages > Adverse Mortgages May not Benefit the Consumer Warns Mias
Interest Only Loan Calculators
Interest only loans can be fixed-rate mortgages (FRM) or adjustable-rate mortgages (ARM). Though it is generally felt that interest only loans have lower interest rates, this is not true. In fact, they may have higher rates, because the risk is greater in IO loans. When applying for an interest only loan with adjustable rates, it is very important to consider what the future interest rates are likely to be. This is because repayment in the future will consist of both interest as well as the principle.
For interest only loans based on the adjustable mortgage rates, the interest rate is calculated and changed based on the index rate.
The index rate depends on the average of Interbank offered rates for one year US dollar ?denominated deposits in the LIBOR (London Interbank Offered Rate). This Index is published in the Wall Street Journal. The interest rate is adjusted according to the index, plus the margin (rounded to the nearest 1/8 percentage point). The interest...
Interest Only Loan Calculators
Mortgages > Interest Only Loan Calculators
What is a Self-Certification Mortgage?
A Self-Certification mortgage is a mortgage designed for people who are unable to provide proof of income. This type of mortgage was originally designed for the self employed who historically experienced difficulty obtaining a loan with 'high street' lenders due to not having audited accounts available. If you are unable to show your earnings due to being self-employed, a seasonal wage earner, or anyone with irregular earnings such as a contract worker or commission-based employee, or in salaried employment with a supplementary source of income, an unsalaried company director, or varying other reasons - a Self-Certification mortgage could be the best option for you. Self-certification mortgages allow borrowers to certify their own earnings without having to supply documentation, such as payslips. With a self-certification mortgage you declare what your income is but generally you do not need to provide any proof.
You can apply if you are employed or self employed. Self-Certification...
What is a Self-Certification Mortgage?
Mortgages > What is a Self-Certification Mortgage?
Digital Artist Paal Anand and Advertising Photographer Kelly Holland Launch Bling Imaging
Santa Monica, CA (ContentDesk) July 13, 2006 -- What do a visual effects artist and an emerging advertising photographer have in common? Bling! Realizing their similarity in taste, with their love of edgy visuals, Bollywood movies, and capturing of the human spirit, Kelly Holland and Paal Anand have been developing a style together. With Mr. Anands background working as a digital artist on commercials and feature films, the team has started a new studio that is attempting to bring computer generated...
Change in Texas Law May Make Reverse Mortgages More Popular
Mortgages > Digital Artist Paal Anand and Advertising Photographer Kelly Holland Launch Bling Imaging
A Diamond Engagement Ring Is The Most Exquisite Gift And Ultimate Symbol Of Love.
Your engagement is considered to be one of the most special days. It's a chance to represent your true love and devotion to someone special and to declare it a way that will never be forgotten.
The engagement ring is going to stay on her hands forever, and every time she sees it, it should remind her about that glorious day, and her partner's undying devotion. This is why the engagement ring holds such an important place in a man's life. It is not just an ornament; it symbolizes...
Mortgages > A Diamond Engagement Ring Is The Most Exquisite Gift And Ultimate Symbol Of Love.
How to never have a messy office (or house, garage or shed) again!
Copyright 2006 GettingAGrip.com
I learnt something as I unpacked my bags recently. I'd just returned from a 3-day trip to regional towns around New Zealand. I pulled out some items I needed immediately and then caught myself thinking, 'I'll finish unpacking later.'
'No you won't. You'll do it now!' said the little voice on my shoulder.
With a brief flutter of resistance my procrastinating self crept back into her hole. Within five minutes the job was...
Mortgages > How to never have a messy office (or house, garage or shed) again!
Mortgages
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