Most people who have owned their own homes for a long time and who may even have paid off their mortgage completely, still find themselves with difficulties making ends meet. So what do you do if you don’t want to sell your home and downsize or take out a new mortgage with the associated monthly repayments?For anyone over the age of 62 and who has equity in their primary home, there is a possibility to release that equity and make your self more financially comfortable without having to take on new monthly payments or move house. The amount available is normally calculated as a lump sum of money you can borrow against your home but you do not have to take the loan as a lump sum, there are other options.You will still own your home and you can, if you choose to, live in it until you die or decide it is too much for you to cope with. This option is called a ‘Reverse Mortgage’ and they are available either through ‘public sector’ financing (with certain restrictions) or the ‘private sector’ providing you are eligible under the terms of the scheme.How a reverse mortgage works is that you take out a loan against your home but you do not make any repayments, instead any interest accrued is added to the loan amount year on year and is paid off either when you die, you sell the house or you leave the house and it is no longer your primary residence.Obviously there is a downside to these types of mortgage and the main one is that you reduce the amount that you can leave as part of your estate to your children or other heirs. The worst case scenario is that by the time you move on that the entire value of your house is owed against the mortgage, more typically though you can arrange things such that you are still able to leave something but have released some funds to make your life a little easier.Most families I would think would be more than happy with this arrangement and even if they are not, at the end of the day it is your money and your life times work that got you your home in the first place.The basic calculation you need to make is best done using a calculator into which you enter your home value, any outstanding loan amount, your zip code and the youngest home owner’s age (don’t forget the requirement is a minimum 62 years old).The calculator will work out the lump sum available which, as stated earlier, can be taken in different ways, either as the lump sum calculated, as a regular monthly payment or on a cash request basis.
The recent announcement of President Obamas “Making Home Affordable” plan will allow millions of current homeowners the chance to refinance or modify their home loans into new 2% fixed rate mortgages. The savings, through interest alone, easily add up to hundreds of dollars per month. Here is how this $75 billion housing bailout plan works:-Homeowners who have seen their home or property values drop by 15% or more as a result of this housing crisis, are in luck. Millions of homeowners who purchased their home in the past few years now are stuck with mortgages that are actually worth more than the home. Now, you will still be approved for a 2% fixed rate finance even if you owe up to 5% more than your home is actually worth.-Homeowners who have been able to make every one of their mortgage payments on time and in full for the past 12 months, or longer, in a row, can now refinance into the Government backed fixed rate 2% home loan. All homeowners will qualify for this refinancing part of the “Making Home Affordable” plan as long as you have not been late or missed any payments.-“Financial Hardships” such job loss, income loss or reduction, hospital bills or tuition payments, high interest debts, or a whole list of other things will help a homeowner qualify and be approved for a home loan modification. This loan modification will allow homeowners who have missed or been late on a few mortgage payments and are struggling financially. Include a handwritten letter stating your “Financial Hardships” and hand sign it. Attach this letter to your loan application for a 2% fixed rate, government backed, home mortgage loan modification.-A homeowner who is lucky enough to have a mortgage financed or backed from Freddie Mac or Fannie Mae will be automatically eligible, regardless of your financial situation, for a 2% home loan refinance or modification. This is possible, again, because of President Obama’s and the Federal Governments “Making Home Affordable” plan.By taking advantage of this great time for refinancing or loan modification, a homeowner can easily save hundreds of dollars every single month, in interest savings alone. This easily adds up, in most cases, to tens of thousands of dollars in savings over the course of the mortgage, which is usually 30 years. Homeowners who are having financial problems, or think there mortgage payments are too high and they could do better, should look into the potential savings refinancing or modification of your home loan are. Odds are, especially using this “Making Home Affordable” plan, you will qualify for a much better home mortgage than you have now.
Want to go to college but don’t have money to begin with? Problem with books, dorm, daily needs transportation and the like? Well most people, especially college students, do not have the tens of thousands of dollars to pony up every year for college tuition either. That’s why most college students choose to use college/student loans to put themselves through college, therefore they can pay the tuition without breaking a sweat. However when you finish college and graduate and the time to pay these student loans back has finally arrived, many people do not know how and where to begin with. How about refinancing your loans before you even start anything else?By refinancing your loans, you can save a lot of money, hundreds or even thousands of dollars before you start repaying your loans, an option that many people fail to use. When you leave college chances are that you have a classifications of loans on the books with a set of different interest rates attached to each one. This can help you to lower your interest rates when you refinance these loans, or at least bring some of them down, therefore lowering your monthly payments and saving you money in the end. Even if all your interest rates cannot be refinanced, there is a good chance that you can save money in some place through refinancing.Refinancing your loan is so great but where can you find a reliable place to lower your interest rates? Open up your Internet and start searching. Internet is your one stop shop where you can find companies that can help you refinance your loans. Here, you can find variety of sites that offer refinancing service that suit your needs. But you would want to be extra careful when you are searching as there are a lot of scumbags who will do their best to deceive you and steal money from you. Ask your friends’ and neighbors’ advice. Maybe they know of a credible company that they trust. Deal with those college refinancing loans websites that deliver real refinancing results. Be wise and don’t get scammed.