Sep 25, 08 by Bill Ness
The recent historic bailout of mortgage giants Fannie Mae and Freddie Mac will likely come as welcome news to many homebuyers and homeowners looking to refinance. Already, interest rates on 30-year fixed mortgages are down as much as three quarters of a point or more from their recent high of around 6.5 percent. As a result, more applicants are entering the home buying pool and those in desperate need of refinancing are finding some relief.
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Sep 11, 08 by Bill Ness
Home financing for active retirees is a complicated process, especially in today's financial environment.
Generally speaking, fixed rate mortgages, or FRMs, are a better option for retirees who are on a single-source fixed income. The decision to get a 30-year or a 15-year FRM depends entirely on the level of that income. A retiree should not have more than 30-35% of his or her monthly income going towards the mortgage payment, as the "other" costs of living can add up quickly, and funds should be kept available for any increases in medication or hospitalization expenses. The fixed rate mortgage helps to prevent the retiree from any "payment shock" in the future which may lead to a situation where he is unable to continue making payments.
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Dec 19, 07 by Bill Ness
I recently discussed the fact that the Senate Panel is reviewing the practice of reverse mortgages, and I received a number of inquiries from readers asking about more information on reverse mortgages and whether or not they should consider this avenue. While I am not a mortgage expert, I have done some research to help you better understand the reverse mortgage process so you can decide if one is right for you. Reversemortgage.org is a great site for people who want to get more information on this topic, and I have summarized some of their information below.
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Dec 16, 07 by Bill Ness
On Wednesday, a Senate Special Committee on Aging began reviewing the growing reverse mortgage industry, and the practices of lenders who sell reverse mortgages.
Reverse mortgages have come under scrutiny as their popularity grows. From 2005 to 2006, the number of reverse mortgages increased nearly 76% from 48,493 to 85,639. Experts say this number could likely continue to rise as Americans look for new ways to finance longer life expectancy after retirement and increases in costs such as healthcare. While reverse mortgages are designed to help people 62 and older receive money from the equity in their home, some say the program preys on unsuspecting seniors and could lead to financial problems.
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