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Reverse Mortgage: Income Or Encumbrance?

On difficult times, friends (or financial advisers) may have advised you to apply for a reverse mortgage in Reno. Before considering this option, there are some questions you need to answer, and advantages and disadvantages of reverse mortgages and other related topics such as rate, costs, and requirements you need to know.

What is a reverse mortgage and how does it work?

A reverse mortgage is a loan where declare a property lien on the equity of your residential home. Older homeowners are the target customers of this loan. With this loan, you can take advantage of your home equity while staying in your current home. You do not pay monthly mortgage expenses but the loan becomes due when you move or die.

A reverse mortgage can be your last option to earn income based on the equity of your home. Every month, you receive a part of the accumulated home equity from the bank where you applied for the mortgage.

You can use the proceeds for whatever purpose. When you decide to move out (or you die), the bank sells your home property to pay for the loan you borrowed. If the selling value is greater than the repayment value, the difference will be awarded to you (or your heirs in case you died). This is where the income-generating feature of the reverse mortgage in Reno comes in.

What are requirements for a reverse mortgage?

You must be 62 years old and above to be eligible. The house as a collateral is your residential home for at least 12 months. Furthermore, you own the house. If you will use the proceeds to pay a mortgage, the balance must be significantly lesser than the equity of your home. The process and requirements are stringent and the amount of loan depends on these requirements.

Generally, the older you are and the higher the value of your property is, the higher your loanable amount is. But in some cases, the loan amount may be lower despite your older age. One instance is the value of the mortgaged property if you are using the loan money for pay mortgage balance of your house. In some way, this is a refinancing option on your part.

What are the pros and cons of a reverse mortgage?

No monthly payment requirements

Lenders are not strict with regards to the purpose of getting a loan.

You can use to refinance a mortgage or pay repairs for your home.

The monthly funds received from the bank can improve your cash flow.

Fees and closing costs are sometimes high.

You must maintain the house. You need to pay for repair and maintenance costs while the loan is ongoing.

You must pay property taxes and insurance. Despite the lien, you are still the owner of the house. Keeping your house free from someone elses claim other than the lender remains your responsibility.

A reverse mortgage in Reno can limit your options in keeping the house as an inheritance. Remember, your house is the lien to a loan. Even if you own it, you forfeited some rights of ownership. That ownership includes the right to sell the property to another person aside from the lender.

A reverse mortgage diminishes the value of your property.

How to find a reverse mortgage lender?

The first thing to consider is the lenders appraising system. Ensure that the lender has fair and systematic appraising methods because one factor in determining the loan money is the value of your house. A little knowledge on fair market values is an advantage on your part. If you have to ask for a second opinion, you can do so. The second factor is its license or permits to offer such services. The Federal Housing Association regulates the mortgage industry and all lenders engaged in mortgaging.

What are the interest rates for a reverse mortgage?

The interest rates vary from one lender to another. Some lenders may charge as high as 4% for a fixed rate and 3% for adjustable rates. You can receive the money depending on the type of mortgage you avail. You can receive the money either a lump sum, fixed payment every month or line of credit. The manner of collection may also be a combination of these methods.

Conclusion

A reverse mortgage in Reno is your last resort if other avenues of earning an income during your old age. There are many factors that you should consider. These factors include interest rates and closing cost. Weigh in the pros and cons listed above and consult an experienced loan officers from a reputable company like, Fairway. You can call or send an email for your questions.

Jill Reid, a Fairway Independent Mortgage represenative, provides Reno and Sparks homeowners with expertise with mortgage related issues such as refinancing and mortgage planning.

View the video below to hear what Jill's clients have to say:



Advantages Of Selling Your Home Through An Estate Agent



Looking for a buyer for your home might seem easy, but it is, in fact, a complex process. If you do not have a lot of time to invest in the process, it might make sense for you to hire an estate agent to do it. You might be, at the beginning, put off by the thought of having to pay quite a bit for their services, here are still some advantages of getting an expert to help you out:

1. List of potential buyers

An estate agent will also have a line of buyers who are looking for their dream home. If you are looking to sell quickly, this is a huge benefit, because you will not lose time posting ads and waiting for someone to call for a viewing. Instead, if they know someone who is looking for a property exactly like yours, then you immediately have a potential buyer!

2. Local knowledge

One of the most difficult things about selling a property is to figure out a selling price. If you just recently bought the property and renovated it, then its easier. But otherwise, you need someone who has knowledge of the market, the selling price for similar homes and can adjust it based on the current condition of your house. This is where the skills of a respectable estate agent come into play. It pays to get the advice and support of a quality estate agent with local knowledge.

3. Do the legwork

From measuring the rooms, taking photos to even putting up that sale sign outside your home, you can expect your estate agent to handle everything. This also means taking care of the time-consuming part, showing the property to potential buyers and even the tricky job of negotiating the final price. The last step is crucial especially if you are not well-versed in negotiation. After all, you want to sell your property for a good price!

How much should you expect to pay your estate agent?

The price you pay for their services can vary greatly, depending on the value of your property and how much you negotiate in the end. You can expect it, though, to be between 0.75% to 3% plus 20% VAT on the agreed selling price. However, the national average was found to be somewhere around 1.8% plus VAT.

If you have a high-value property, meaning over £500,000, you will find agents are willing to go even below 1% plus VAT. You should, however, try to start negotiating at 1% plus VAT.

Your estate agent should, according to law, list everything that in included in the fee, like advertising costs, costs of putting a For Sale sign and others. You should not have to pay for these extra. They can also help you get an Energy Performance Certificate (EPC), so you do not have to do it yourself.

The breadth of an estate agents services makes it worthwhile for you to hire them, as they can easily take on a lot of the work for you. Because they earn on commission, they will do their best to also get the best price for your property, making it a win-win situation for everyone.

Why Buy New? 5 Reasons You Should Get A New Home Instead

Sure, there is an abundance of cheap, foreclosed and preowned homes in the market that you can select from. This tends to be the first option for many, because, at first glance, this seems to be the most financially sound thing to do. Most of the time, new homes are more expensive than resale homes, but the reasons below might help you rethink. These are why you should consider purchasing a new home instead:

1) The freedom to customize. New home builders allow a huge leeway in coming up with the property design which will result in the home that you have envisioned, tailored to your wants and needs. This kind of liberty cannot be found when you opt for the resale option. You won't have any say in where the bathrooms should go, the number of rooms, the flooring material to use and even the paint colour. With a new home, you'll have the freedom to put your signature on your home.

2) A more efficient structure. It is no question that a new home will be more efficient than an old one. Building regulations have not remained the same and old homes are not up to date on the new standards. One significant example is the energy efficiency. New regulations have upped the required level of insulation. With this, the heating in your new home will be lower and so will your cooling bills be. New home builders Perth will also make sure that the following components are also up-to-date: the appliances, windows, heating system, rain collection structure and air conditioning.

3) Less Maintenance. Because it is brand new, the remodeling, refurbishing, and major repairs are not expected until several years after you move in. When you buy a resale home, there will be upgrade and renovation expenses to spend for.

4) Health Hazards. There are a few health risks involved if you settle into a new home. For example, old homes are most probably coated with paint containing lead. If you have children, this will be a scare. Old homes will probably contain mould, asbestos, moisture and radon.

5) Safety and security. New homes will also be built using the latest technology, assuring you of higher levels of security - from modern locks to alarm systems. You can even let your home builder provide home security that will meet police standards. Your home builders will be able to build it so that it will meet the latest safety standards – fire resistant materials, smoke alarms and a layout that will provide the best access in case of fires and earthquakes.

According to this Mandurah company, It's important to think about all the stress that will be out of your hands with a new home. Working side by side with your builder will let you be involved in the process of putting up your dream home from start to finish. Once it is ready, you can move in without all the hassle. This will give you more quality time to rightfully enjoy your new abode with your family and friends.

Why I Chose To Live In Northern Colorado

I have heard many friends and coworkers who say that living in the country is not for them for some reasons. Maybe theyre right. There are disadvantages when you live outside the city and away from things that you have been dependent on for so many years. But country living has its own charms and benefits that lured me into moving away from my condo and to Northern Colorado.

The Weather and the Outdoors

I love sunshine and I hate gloomy weather. Maybe Im getting old but too much rain can make me feel a bit depressed. Northern Colorado has the perfect weather for sun worshippers like me. The sun shines more than 300 days per year and the state gets below 15 inches of rain, too. I do like snow however, and while you would think Colorado gets a ton of snow it really doesnt. In fact, it usually doesnt last as long as snow on the east coast. Humidity level is also very low so hot seasons are dry unlike in most cities of California. Heat and humidity do not really help my asthma attacks.

I wouldnt have imagined doing lots of outdoor activities when I was living in the city. In the town where I now live, I can go hiking, camping, boating, cross-country skiing, and four-wheeling. The roads are bike-friendly and there are miles of bike lanes around town. There are also bike trails that will cater to novice and professional bikers alike.

Education and Work

One of the major reasons why most people tend to stay away from rural living is the unavailability of good schools and decent paying jobs. Northern Colorado is an exemption. The Colorado State University, for example, is a nationally recognized educational institution and offers engineering and business courses. Their veterinarian program is consistently in the top 10 all around the US.

If you have the skills to match, its easy to land a high-paying job in this state. Im a nurse by profession and Im currently employed with Poudre Valley Hospital, which, along with Hewlett Packard and the Colorado State University, is one of the top three employers in Northern Colorado. The state is also buzzing with small and family-owned businesses so finding work should not be a problem.

Food and Beer

There are hundreds of restaurants to choose from family-style to fine dining. Personally, I prefer the small, cozy ones and pub grubs. Northern Colorado also offers great beer selections from big breweries, local craft breweries and the New Belgium Brewery. Playing pool in Coopersmiths while having a sip of my Punjabi Ale is my idea of a great Friday night.

Stress-Free

Nature has always been a great stress reliever and Northern Colorado has a lot to offer. The cool, fresh breeze has helped me to become more focused. Mountain ranges are a sight to behold. Heavy traffic is almost non-existent and I can go 75 miles per hour on the highway. Would I recommend living in Norther Colorado to anyone? Absolutely! It was a wise choice for me and Im never looking back. Click here to learn more about Northern Colorado.

Why I Chose To Live In Northern Colorado

I have heard many friends and coworkers who say that living in the country is not for them for some reasons. Maybe theyre right. There are disadvantages when you live outside the city and away from things that you have been dependent on for so many years. But country living has its own charms and benefits that lured me into moving away from my condo and to Northern Colorado.

The Weather and the Outdoors

I love sunshine and I hate gloomy weather. Maybe Im getting old but too much rain can make me feel a bit depressed. Northern Colorado has the perfect weather for sun worshippers like me. The sun shines more than 300 days per year and the state gets below 15 inches of rain, too. I do like snow however, and while you would think Colorado gets a ton of snow it really doesnt. In fact, it usually doesnt last as long as snow on the east coast. Humidity level is also very low so hot seasons are dry unlike in most cities of California. Heat and humidity do not really help my asthma attacks.

I wouldnt have imagined doing lots of outdoor activities when I was living in the city. In the town where I now live, I can go hiking, camping, boating, cross-country skiing, and four-wheeling. The roads are bike-friendly and there are miles of bike lanes around town. There are also bike trails that will cater to novice and professional bikers alike.

Education and Work

One of the major reasons why most people tend to stay away from rural living is the unavailability of good schools and decent paying jobs. Northern Colorado is an exemption. The Colorado State University, for example, is a nationally recognized educational institution and offers engineering and business courses. Their veterinarian program is consistently in the top 10 all around the US.

If you have the skills to match, its easy to land a high-paying job in this state. Im a nurse by profession and Im currently employed with Poudre Valley Hospital, which, along with Hewlett Packard and the Colorado State University, is one of the top three employers in Northern Colorado. The state is also buzzing with small and family-owned businesses so finding work should not be a problem.

Food and Beer

There are hundreds of restaurants to choose from family-style to fine dining. Personally, I prefer the small, cozy ones and pub grubs. Northern Colorado also offers great beer selections from big breweries, local craft breweries and the New Belgium Brewery. Playing pool in Coopersmiths while having a sip of my Punjabi Ale is my idea of a great Friday night.

Stress-Free

Nature has always been a great stress reliever and Northern Colorado has a lot to offer. The cool, fresh breeze has helped me to become more focused. Mountain ranges are a sight to behold. Heavy traffic is almost non-existent and I can go 75 miles per hour on the highway. Would I recommend living in Norther Colorado to anyone? Absolutely! It was a wise choice for me and Im never looking back. Click here to learn more about Northern Colorado.

How To Prevent Risk Of A Break-in

Break-ins often happen to people who are not expecting to get their home broken into, and some things you are doing or are not doing may be increasing your risk of becoming the next victim. Here are some tips for reducing the risk of getting your property broken into.

If someone asks to use your bathroom while they are there to service or repair something at your house, check any windows after they leave to make sure they are still locked. Someone coming to do house work may ask to use your bathroom, then while they are in there they may unlock the window so that they can enter the house later.

Even if you are out of town, have a neighbor regularly do things such as grab your newspaper and leave tracks in the snow if it is snowing. Nothing tells someone the house has been vacant awhile quite like newspapers piling up on the porch or new snow without a single track in it.

Locate the control pad for the security system where it is out of sight to people that may be lurking outside. That way, nobody knows if you forgot to set the alarm.

Be sure to alarm all of the windows, including those that you may not think anyone can reach from the outside. You would be surprised the lengths people would go to in order to get inside a house.

In case there is a break-in, do not leave valuable things inside dresser drawers, the bedside table or the medicine cabinet. Although you may think these are clever hiding places, a burglar will probably check those places first. Come up with something more inventive to hide your possessions.

Do not invest in something such as a safe to keep your valuables in, unless it is bolted down or otherwise unable to move. If a thief cant break into it but can carry it, they will just take it with them to crack later.

When you are away, leave on a TV or radio to deter people lurking outside of your house. Also consider getting a dog to stay at the house. The louder and more likely to bark, the better.

Avoid announcing when you plan to leave the house for vacation on social media websites, because they are not as private as you think and it is easy for people to look up where you live if they try hard enough. Also avoid mentioning if you are home alone for the same reason.

Another tip that many people do not think to try is leaving their keys nearby them at night. The panic button on the key fob should set off your car alarm even when you are in the house. If you hear someone trying to break into your house and press the button, the intruder will often get scared away.

Following these tips will not guarantee total safety but you are on your way. These lockmsith tips will make it seem more difficult for them to get in and may prevent anything valuable from getting stolen.