The basics:
A reverse mortgage is a type of home loan that lets you convert a portion of the equity in your home into cash.
The requirements:
Age: You must be 62 or older.
Living status: The home has to be your primary residence.
Equity: You'll need about 40% equity in your home.
Additional costs: No mortgage, but you'll have to pay the cost of property maintenance, taxes and insurance.
Legacy: Leaving the home to an heir is a less likely option than with a regular mortgage because it can use up the equity in your home. Often, you or your heirs give up the home when the loan comes due (soon after you move out or die).
Is your credit mortgage-ready? Get your free credit score at myBankrate.
You're a candidate for a reverse mortgage if:
You want to live in your home until you die.
There are no heirs to leave your home to.
You can afford to maintain the home.
You want a line of credit or an increase in monthly cash flow.
Choices of accessing your equity:
A lump sum of cash at closing.
Equal monthly payments for as long as you live in the home.
Read more: http://www.bankrate.com/finance/mortgages/reverse-mortgage-cheat-sheet.aspx
Monday, September 21, 2015
Friday, September 11, 2015
Mortgage rates inch higher
Average long-term U.S. mortgage rates inched up this week as financial markets awaited the Federal Reserve's crucial decision next week on interest rates.
The subdued gains followed a sharp drop the previous week, as global markets continued to whipsaw amid economic disruption in China and uncertainty over the Fed's interest-rate policy.
Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage edged up to 3.90 percent from 3.89 percent a week earlier. The rate on 15-year fixed-rate mortgages rose to 3.10 percent from 3.09 percent.
Investors and economists are closely watching whether the Fed moves at its meeting next week to raise a key interest rate, as has been long anticipated. A rate hike by the Fed could bring higher rates for home loans. The Fed has kept its key short-term rate near zero since the financial crisis struck seven years ago.
Many observers had hoped for a clear signal from the government's report on U.S. employment in August, issued Friday, the final snapshot of the job market before the Fed's policy-making body meets. The report showed that unemployment fell to a seven-year low of 5.1 percent, but hiring slowed — a mixed bag of news.
The Labor Department report gave a view of an economy growing at a modest but steady pace.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was unchanged from last week at 0.6 point. The fee for a 15-year loan rose to 0.7 point from 0.6 point.
The average rate on five-year adjustable-rate mortgages fell to 2.91 percent from 2.93 percent; the fee rose to 0.5 point from 0.4 percent. The average rate on one-year ARMs rose to 2.63 percent from 2.62 percent; the fee held steady at 0.3 point.
read more: http://www.chicagotribune.com/business/ct-mortgage-rates-inch-higher-20150910-story.html
The subdued gains followed a sharp drop the previous week, as global markets continued to whipsaw amid economic disruption in China and uncertainty over the Fed's interest-rate policy.
Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage edged up to 3.90 percent from 3.89 percent a week earlier. The rate on 15-year fixed-rate mortgages rose to 3.10 percent from 3.09 percent.
Investors and economists are closely watching whether the Fed moves at its meeting next week to raise a key interest rate, as has been long anticipated. A rate hike by the Fed could bring higher rates for home loans. The Fed has kept its key short-term rate near zero since the financial crisis struck seven years ago.
Many observers had hoped for a clear signal from the government's report on U.S. employment in August, issued Friday, the final snapshot of the job market before the Fed's policy-making body meets. The report showed that unemployment fell to a seven-year low of 5.1 percent, but hiring slowed — a mixed bag of news.
The Labor Department report gave a view of an economy growing at a modest but steady pace.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was unchanged from last week at 0.6 point. The fee for a 15-year loan rose to 0.7 point from 0.6 point.
The average rate on five-year adjustable-rate mortgages fell to 2.91 percent from 2.93 percent; the fee rose to 0.5 point from 0.4 percent. The average rate on one-year ARMs rose to 2.63 percent from 2.62 percent; the fee held steady at 0.3 point.
read more: http://www.chicagotribune.com/business/ct-mortgage-rates-inch-higher-20150910-story.html
Wednesday, September 2, 2015
What NJ county is the best for mortgage approval?
A new report from SmartAsset.com determined the counties in the Garden State where homebuyers are most likely to be approved for a mortgage.
Many NJ mortgages are still in trouble
The rankings are part of a bigger study on the best mortgage markets across the country.
The counties were ranked according to loan funding rate, which is the ratio of mortgage applications to mortgages approved.
Morris County topped the list at 64.9 percent, followed by Somerset (63.8 percent), Hunterdon (63.7 percent), Cape May (63.3 percent), Mercer (61.9 percent), Monmouth (61.6 percent), Bergen (61.3 percent), Burlington (60.7 percent), Gloucester (60.7 percent), and Ocean (60.1 percent).
Hudson County finished among NJ’s counties at 54.8 percent.
Complete New Jersey rankings
“The top 10 for New Jersey all had loan funding rates above 60 percent, which is really a very high number,” said AJ Smith, SmartAsset Managing Editor/VP Content Strategy. “The state average is 59.66 percent, and nationally 58.69 percent of mortgage applications are turning into actual mortgages.”
Smith said several criteria play into the higher loan funding rate.
“Things like higher income, better credit scores,” she explained. “Those types of things can make you more attractive to the mortgage lenders.”
The loan funding rates are one piece of the puzzle that SmartAsset used to find the best mortgage markets in the US.
“We looked at loan funding rate, borrowing cost, property tax, and mortgage payments,” Smith said.
Read More: http://nj1015.com/what-nj-county-is-the-best-for-mortgage-approval/
Many NJ mortgages are still in trouble
The rankings are part of a bigger study on the best mortgage markets across the country.
The counties were ranked according to loan funding rate, which is the ratio of mortgage applications to mortgages approved.
Morris County topped the list at 64.9 percent, followed by Somerset (63.8 percent), Hunterdon (63.7 percent), Cape May (63.3 percent), Mercer (61.9 percent), Monmouth (61.6 percent), Bergen (61.3 percent), Burlington (60.7 percent), Gloucester (60.7 percent), and Ocean (60.1 percent).
Hudson County finished among NJ’s counties at 54.8 percent.
Complete New Jersey rankings
“The top 10 for New Jersey all had loan funding rates above 60 percent, which is really a very high number,” said AJ Smith, SmartAsset Managing Editor/VP Content Strategy. “The state average is 59.66 percent, and nationally 58.69 percent of mortgage applications are turning into actual mortgages.”
Smith said several criteria play into the higher loan funding rate.
“Things like higher income, better credit scores,” she explained. “Those types of things can make you more attractive to the mortgage lenders.”
The loan funding rates are one piece of the puzzle that SmartAsset used to find the best mortgage markets in the US.
“We looked at loan funding rate, borrowing cost, property tax, and mortgage payments,” Smith said.
Read More: http://nj1015.com/what-nj-county-is-the-best-for-mortgage-approval/
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