Category Archives: Home Mortgage
Why Should I Get Mortgage Insurance?
Since a house is a large financial transaction, Home Lenders want to protect their investment in every conceivable way. Thus, the lenders require the borrower to show their desire for the house. An example of this commitment prove (and the ability to pay all back home installments) is a down payment have. The house lender may grant an advance of about 5-10%. On the other hand, if the borrower will go home coverage, the amount of the deposit significantlyreduced by the home specialist.
“Mortgage Insurance” is a term that will probably discover, if you are looking for a loan. Let us know, just what this has to mean notion ( ‘home coverage’).
– Lenders Tree
Mortgage Insurance is an important tool for both the borrower and the home specialist. By its definition, is the main coverage protects the home specialist with the borrower defaults on the home loan. Insurance covers the loss of a home can receive such a specialistCircumstance. Therefore, in addition to receiving the document at home, the home is protected against ruin by specialist domestic coverage.
– Lenders Tree
The payment of this home coverage is obviously paid by the borrower, and there are a few methods which can provide the borrower pay for this house to cover premium ie a method that is as an element of the monthly installments to be made at home which include home specialist (which in turn goes) to the sum of insurance on the home page.
But how doeshome coverage be no improvement for the borrower?
A borrower could be made to only 5% or 10% down payment, instead of the usual 20% or whatever they choose. This means that coverage is at home really well for people who do not have enough funds large down payments (20%) is a fairly significant amount in itself.
Such people can save premiums by removing house coverage. What is more, because at home there cover a lot of confidence to the Home Lenders(in terms of their money for sure), could form the processing of your home faster and smoother than what they could not have been home to cover commitment. So, not only at home cover any increase in the purchasing power of a person, but offers him / her deal with advantages in terms of always a great home and getting faster.
http://www.lenderstree.pannipa.com/2009/10/14/why-should-i-get-mortgage-insurance/
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FBI Reverse Mortgage Warning
The FBI recently released a Fraud Warning that reverse mortgages are being used to target scams involving seniors. This is the real thing, most news stories talk about how the senior is being taken advantage by the lender or loan officer when in fact most of those cases turn out to be that the borrower was talked into putting the funds into an annuity or some other investment. In these cases the borrower never loses money they just limit their access.
In this case the FBI warning points out the real problem is that Builders, Realtors and others talk the senior into buying a house with nothing down and it is really a property flipping scam that enriches the person flipping the property. It is totally illegal and I have had one case where I had to turn a senior and their builder friend into the FBI and the HUD Inspector General. My company has had several other inquires but we can tell very quickly now when it is a scam.
The key strategy is to recruit the senior to become a party to the scam and cheat the lender out of money that goes to the person doing the flipping, the benefit to the senior is that they are told they will end up with the home for free. The scam artist are even running ads and putting on seminars saying that you can get a home for free.
The unfortunate part to this whole thing is that it will give a product that does so much good for so many honest senior citizens another black eye. The reverse mortgage is helping many older American’s to keep their homes and to live more comfortable lives; these types of scams are run by a few and end up creating problems for the majority of people that really need it.
If you know someone that is 62 or older and they are either thinking about getting a Home Equity Conversion Mortgage or you think they could live a more fulfilling life if they got one, help them do some research and find a reputable lender to work with. My firm is in 22 States and of course we would love to help but there are many good quality lenders you can work with. Call a few and see if they will give you specific details over the phone, if they won’t you should keep looking, we give complete quotes and detailed information to folks even if they are in a State we cannot lend in.
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