Understanding Reverse Mortgage Rates
Article by Brittney Parks
While most consumers understand how interest rates impact traditional mortgage loans, many fail to understand the importance of reverse mortgage rates. As with other mortgage loans, these loans are given either fixed or variable rates. These rates are important for several different reasons.
Most importantly, a borrower's rate will determine how much he or she will be eligible to receive. The lower one's interest rate, the higher the payout. Reverse mortgage rates also determine the amount of money borrowers will owe to their lender in the future. While this may not be an immediate concern, a borrower's rate might impact the inheritance of his or her heirs. For these reasons, interested consumers should take the time to understand reverse mortgage rates before further pursuing a loan.
How Reverse Mortgage Rates Are Determined
There are many different factors that affect reverse mortgage rates. The first is the payment plan a borrower chooses. Fixed interest rates are only available to borrowers who want to receive their payment in one lump sum. The benefit of choosing a fixed rate is that the rate will never increase over time. However, since this limits one's payout options, a loan with a fixed rate may not always be the best choice.
These loans can also be given variable rates. These rates are currently based on the LIBOR, or the "London Inter-Bank Offered Rate" index. Adjustable interest rates may adjust annually, semi-annually, or monthly. Fortunately, reverse mortgage rates are capped so that the interest rate may never exceed a certain amount. It is also important to understand that lenders add a margin onto the rate set by the LIBOR index. Therefore, adjustable rates will vary slightly by lender.
At this time, interest rates do not vary according to a borrower's credit worthiness. Borrowers with good credit are not given lower interest rates than those with less positive credit histories. While this may not be welcome news to every borrower, these regulations were enacted to help all cash-poor but equity-rich seniors qualify for a reverse mortgage.
Fixed Versus Variable Reverse Mortgage Rates: Which Benefits Borrowers?
There are many things to consider when choosing an interest rate. Fixed-rate reverse mortgage loans are beneficial for borrowers who need a large amount of money upfront. For instance, a person who needs a reverse mortgage to repay their original mortgage loan might choose to receive a lump sum at a fixed interest rate. However, because interest begins accruing as soon as the borrower receives their payment, this option is usually not a good choice for borrowers who do not need the money for a specific purpose.
Borrowers who choose to receive monthly payments or open a line of credit, instead of taking a lump sum, will only be charged interest on the amount they have received. In some cases, this decreases the amount of interest a person will pay over the life of the loan. To determine the most beneficial interest rate and payment option, borrowers will need to carefully consider their options and discuss the benefits of each with their lender.
This article with keyword: savers mortgage or abbey national mortgage or mortgage life cover or compare mortgage deals or mortgage best buys or independent mortgage advisor or independent mortgage advice or independent mortgage broker or compare mortgage lenders or mortgage providers or online mortgage broker or mortgage quotes online or jumbo mortgage loans or best mortgage lender or mortgage rates jumbo or wisconsin mortgage rates or cheap mortgage loans or va mortgage lenders or online mortgage application or reverse mortgage rules or refinance second mortgage or mortgage lead generation or reverse mortgage info or mortgage protection leads or reverse mortgage texas or exclusive mortgage leads or direct mortgage lenders or home mortgage refinancing or second mort gage loans or standard mortgage or best mortgage company or top mortgage lenders or va mortgage guidelines or central mortgage company or online mortgage companies or mortgage information or va mortgage refinance or mortgage bankers association or mortgage rates florida or reverse mortgage rates or mortgage life insurance
RPPC Bowers 6536 First Baptist Church
Image by Thiophene_Guy Bowers 6536 First Babtist (Baptist) Church, Atchison, KS. Real photo postcard. Read the reverse. Notable landmarks: (first) First Baptist Church 9th street Kansas Avenue List of landmarks found at the Atchison History project. History Sheffield Ingalls 1916 book History of Atchison County, Kansas (public domain) has this entry about the church (p 251): The First Baptist Church of Atchison was organized in 1858, in Allen's Hall, on the northwest corner of Second and Commercial streets. At the time of the organization there were but nine members, of whom three are still living and members of the church, though non-resident: Mrs. L. A. Alderson, Mrs. Aaron Stephenson and Mrs. Mary A. Challiss. Dr. W. L. Challiss was soon added to the membership. The lots on the corner of Ninth street and Kansas avenue were donated by Luther C. Challiss, and a house of worship was erected upon it, and this location has been the home of the church ever since. Rev. L. A. Alderson was the first pastor of the church, and he served faithfully three years without salary. Then followed Rev. Dr. Perkins from New Jersey, and Rev. Frank Remington. Just at this time the troubles of the war came on and very little could be accomplished. Rev. J. W. Warder became pastor in 1866 and the church grew strong under his ministry. Rev. H. A. Guild successfully sened the church for a time in 1868. Rev. J. Sawyer accepted the pastorate, and then Rev. E. Gunn. Rev. J. W. Luke was pastor directly before Rev. Mulford. He bap- tized some of our best workers and did excellent and permanent work for the church. The twenty-fifth anniversary was fittingly celebrated at the home of Mrs. John M. Price, and a silver offering was received toward a new build- ing which came soon after, under the pastorate of Rev. J. B. Mulford, who was called to his reward from here. Rev. D. D. Proper followed and Rev. E. P. Brand and Rev. G. W. Rogers, all of whom served the church under great difficulties. There was a heavy debt left upon the new building, which was drawing a high rate of interest, and the constant calls for money which was paid with apparently no returns, discouraged the membership. Still, the pastors resolutely worked at the great task. Rev. G. W. Rogers undertook to raise ,000 of the mortgage, and B. P. Waggener, who had always been a generous contribu- tor, gave ,000, and made a liberal loan besides. Not long after Rev. Rog- ers was called to another field, and again the church had a pastorless period, but greatly enjoyed the ministrations of the late Dr. Murphy. Rev. J. R. Comer was called to the pastorate June i, 1895, and faithfully served the church twelve years. Much of the money pledged during Dr. Rogers' pas- torate was paid in or collected while Rev. J. R. Comer was pastor. Then the remaining ,500 mortgage and all other debts were bravely taken up and paid, and the church celebrated its victoiy in burning the mortgage and a general rejoicing, and also a firm determination never to g'o deeply in debt again. During the present pastorate of more than eight years the church has strictly followed this rule, but this has not prevented some large purchases. In 1909 the church purchased and placed a new pipe organ at a cost of ,500, and two years later purchased the property adjoining the church on the west for the accommodation of the growing Sunday school. This was done at a cost of ,500 for property and furniture, and the money was raised at a Sunday moraing service. It is in the minds of many of the members of the church that in the near future there must be a new church building, and to that end over ,000 has lieen accumulated and is being held for the time when the membership of the chiuxh shall be ready to erect a structure that shall be worthy of the city and an honor to God. The work of the church has grown and developed and every depart- ment has accepted a larger share in work, local and world-wide. Last year the church contributed over ,200 for missionary and benevolent work, be- sides some gifts which did not pass through the church treasury. The church stands for a strong and helpful and constructive religious work, and a faithful adherence to the teachings of the Bible, and a loyalty to the Lordship of Christ. The present pastor is Rev. A. J. Haggett, who has served his congregation long and well.
reverse mortgage rates....Mortgage Rates Reverse Course on Positive Housing Data 26, 2012 /PRNewswire via COMTEX/ -- Freddie Mac /quotes/zigman/226335 FMCC +1.64% today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates climbing as the housing market ended 2011 on a high note.....reverse mortgage rates
The Economic Crisis - Protests
Image by infomatique Don't stand idly by Join the march on Nov 27th - Jack O'Connor President of Congress THE Government has promised the harshest budget since the foundation of the state as its parting gift to the people of Ireland. This is the result of allowing speculators, bankers and developers to run riot, pillaging and ruining our economy. They capped it all by including useless banking institutions in the credit guarantee scheme on September 29, 2008, thus mortgaging the future of everyone who lives in Ireland. We are told the impending draconian budget is essential to convince investors in the bond markets to lend us the money to run the country. This is exactly the same as what we were told last year when a cut of €4 billion was inflicted. The proof of the pudding is in the eating. It doesn't work. More businesses closed, more people lost their jobs and the economy recorded no growth whatsoever. It didn't work in the bond markets either and borrowing rates have escalated. The bond buyers don't care whether we eat caviar for the next four years or starve to death. They are only interested in knowing how we are going to grow our economy so that we can pay them their money back. That cannot happen without a credible plan for investment and measures to promote domestic demand, instead of cutting it. Our national sovereignty is at stake as a result of the Government's policies. The EU is insisting on reduction of the gap between our state revenue and spending to 3% of GDP by 2014. This is a virtually impossible target because it restricts the capacity for growth. However, if we disregard it there is a real danger that the European Central Bank will stop funding our domestic banks, resulting in a total collapse. It will not stop at the timeframe for the adjustment. Already, unbridled free-marketeers in the EU are insisting on restructuring our labour market, i.e. curtailment of people's rights at work, social welfare entitlements, etc. Repeatedly we are told that there is no alternative and there is no point in protesting. This is completely untrue. There is a better, fairer way. The timeframe for the adjustment is too short. It should be extended to 2017. Critical issues remain at play. The economy is in the doldrums because people are afraid to spend. They are afraid of losing their jobs, their homes and their pensions. Yet the savings ratio has more than doubled since 2007. The key to recovery is a credible plan for job creation to inspire hope and confidence. This cannot be accomplished without an intelligent strategy for investment. The Congress of Trade Unions has developed comprehensive proposals. At least €2 billion per year from the National Pensions Reserve Fund should be deployed for the next three years to fund new projects and businesses. Our commercial semi-state companies should be directed to raise off balance sheet resources for investment. Some of the €80 billion held in Irish occupational pension funds can be brought into play. This approach would result in the creation of tens of thousands of jobs. The other great question which remains to be decided is as to who is going to bear the burden of the adjustment? Over the last two years the Government has inflicted over €14 billion of cuts. The lion's share of these have been shouldered by working people and those who depend most on public services, while the wealthy have remained pretty much insulated. There is talk of broadening the 'tax base'. In other countries this usually means raising tax on wealth and capital, but here it seems it's only about middle and lower income families paying more. We must reverse this equation. The people cannot be expected to endure misery whilst those who contributed most to the cause of the problem go on living pretty much as they always have. It is time to insist on taxing the greedy not the needy. There are more ways of influencing budgetary policy than waiting until whenever the Government sees fit to call it a day and go to the country. It may be too late by then. Democracy is about more than just voting in elections once every five years. We must not stand idly by while the final nail is driven into the coffin. We can influence the outcome by turning out and joining the march for 'A Better, Fairer Way' in Dublin on Saturday, November 27.
Answer by newmexicorealestateforms
The best answer on reverse mortgages that I have found can be located at the AARP publication site. Here is their link; http://www.aarp.org/money/revmort/revmort_basics/a2003-03-21-newloan.html Good luck
Answer by bowler_j
Shop around. Fees are high and you want to minimize them. AARP for one has a department that can help. I would rely more on a fee based Certified Financial Planner to help you find and judge whether the deal is good.
Answer by searing
rates are pretty similar the problem is that programs are not, be very careful because there are a lot of scumbags out there in the business and you should get your lawyer to advise you on how to get the most out of your new mortgage. Consider the tax benefits if any and how your property taxes may be affected. Also look into the homestead act in your state for property tax breaks that my help you save some money. Points on the loan are bad, call your state for assistance
videowebtips.com mortgage refinancereverse mortgage rates
