Change in Texas Law May Make Reverse Mortgages More Popular
Texas was one of the last states to allow homeowners to take out home equity loans. Laws going back to the nineteenth century strictly prohibited home equity lending, as legislators feared that unscrupulous lenders would take advantage of homeowners for the purpose of seizing their homes through foreclosure. This made it impossible for citizens of the Lone Star State to use their equity for home improvements, debt consolidation or paying medical bills, as homeowners in other states may do.In 1997, the Texas constitution was amended to allow homeowners to borrow against their home equity. The amendment allowed for traditional term loans, lines of credit, and reverse mortgages, but did not allow a line of credit on a reverse mortgage. In a reverse mortgage, owners of homes who are at least 62 years of age may borrow against the equity in their home.
They need not pay the money back until they die, move or sell the home. Reverse mortgages have become quite popular in the last few years, especially in areas like California, where homeowners may be cash poor but may have a lot of equity in their homes. Nationally, nearly 90% of homeowners who take out a reverse mortgage do so with a line of credit. In Texas, however, the only options are a lump sum or monthly payments. There are several advantages in taking a reverse mortgage in the form of a line of credit, rather than a lump sum.
The most significant is the fact that interest is only due when money is actually drawn from the credit line. This saves the homeowner substantial amounts of interest over the life of the loan when compared to a lump-sum payout. Reverse mortgages have been quite popular in Texas since the law was changed to allow them, but lenders say that the demand should increase substantially if lines of credit are allowed. The Texas Legislature has recently approved a constitutional amendment that will allow lines of credit.for reverse mortgages, and this amendment is expected to be on the ballot in Texas this fall. This bill is expected to pass easily, and once it does, Texas may become the leading state in the country for issuing reverse mortgages..
?Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.Home Mortgage Loans - Fixed Rate, Adjustable or Balloon, Which One Is Right For You?
When you're shopping for a new home?especially for the first time?all the terms and expressions may be confusing and difficult to understand. Adjustable rate, fixed rate, balloon payment - how do you decide which is the right type of home mortgage for you if you're not even sure what each of them are?The name of the mortgage type usually has to do with how you'll pay for your loan - how the interest on the loan is being determined by the bank. The three major types of mortgages are fixed rate, adjustable rate and balloon payment. Each has advantages and disadvantages.Fixed Rate MortgageWith a fixed rate mortgage, you have a set interest rate for the entire life of the loan. The interest rate that you pay for your loan won't change - which means that you'll pay the same monthly payment for the entire length of the loan.
This protects you from unexpected rises in interest rates that would increase your monthly payment. At the same time, should the interest rates drop, you will have...
Home Mortgage Loans - Fixed Rate, Adjustable or Balloon, Which One Is Right For You?
Mortgages > Home Mortgage Loans - Fixed Rate, Adjustable or Balloon, Which One Is Right For You?
Quitting Now Could Save Smokers a Small Fortune, Advises Moneynet
(ContentDesk) February 18, 2006 -- Following yesterdays decision by the Government to impose a total ban on smoking in pubs and clubs, Moneynet (http://www.moneynet.co.uk) highlights the true extent of the financial cost of smoking. A smoker applying for life assurance will find themselves facing almost double the premium of a non-smoker, said Moneynet chief executive Richard Brown. Add that to the price of the cigarettes and the cost of smoking plainly threatens your wealth not just your health. With a packet of cigarettes currently costing around ?5, a husband and wife who both smoke 20 a day will already be spending a staggering ?3,640 a year on their habit.
Should this couple, aged around 40, want to take out life assurance including critical illness cover with Norwich Union for example, they would be looking at a monthly premium of ?213.30. For a non-smoking couple the cost would be just ?112.20.
Add...
Quitting Now Could Save Smokers a Small Fortune, Advises Moneynet
Mortgages > Quitting Now Could Save Smokers a Small Fortune, Advises Moneynet
Study Indicates Credit Report History the ?Nightmare Before Christmas? for Many Holiday Shoppers
(ContentDesk) November 19, 2004 -- Credit report scores drop dramatically due to delinquent payments from overspending during the holiday season which begins next week. SPENDonLIFE.com (http://www.spendonlife.com/entercampaign.aspx?id=795&ord=1), a consumer savings website that provides credit reports, advises holiday season shoppers to keep a close eye on their expenses this year in order to avoid a credit report nightmare. A study by Experian Consumer Direct reveals that consumers with one missed payment in the last year have an average credit score of about 160 points lower than the average of those with no delinquent payments. "A 160 point difference in your credit report history can mean paying hundreds or even thousands of dollars more on mortgages, car loans, or insurance," says SPENDonLIFE.com President Mark Henry.
"Late payments are not something to take lightly.
Consumers...
Study Indicates Credit Report History the ?Nightmare Before Christmas? for Many Holiday Shoppers
Mortgages > Study Indicates Credit Report History the ?Nightmare Before Christmas? for Many Holiday Shoppers
Home Mortgage Loans - Fixed Rate, Adjustable or Balloon, Which One Is Right For You?
When you're shopping for a new home?especially for the first time?all the terms and expressions may be confusing and difficult to understand. Adjustable rate, fixed rate, balloon payment - how do you decide which is the right type of home mortgage for you if you're not even sure what each of them are?The name of the mortgage type usually has to do with how you'll pay for your loan - how the interest on the loan is being determined by the bank. The three major types of mortgages are fixed rate, adjustable rate and balloon payment. Each has advantages and disadvantages.Fixed Rate MortgageWith a fixed rate mortgage, you have a set interest rate for the entire life of the loan. The interest rate that you pay for your loan won't change - which means that you'll pay the same monthly payment for the entire length of the loan.
This protects you from unexpected rises in interest rates that would increase your monthly payment. At the same time, should the interest rates drop, you will have...
Home Mortgage Loans - Fixed Rate, Adjustable or Balloon, Which One Is Right For You?
Mortgages > Home Mortgage Loans - Fixed Rate, Adjustable or Balloon, Which One Is Right For You?
New Online Resource for Real Estate Agents, Mortgage Brokers and Consumers Matches Buyers With Sellers Willing To Assist With Financing Offers Free Listings Until 10/31
Dearborn, Michigan (ContentDesk) August 31, 2005 -- Until September 30th, 2005, SellerHeldSecond.com is allowing real estate agents and home owners the opportunity to list their homes for sale
for free on SellerHeldSecond.com. SellerHeldSecond.com is the world's only online real estate tool matching buyers who may not qualify for the home of their dreams through traditional financing with sellers willing to assist the buyer in financing part of the transaction.Known in the real estate and mortgage industry as seller held seconds (shs) or seller financed mortgages, in a seller held second transaction the buyer obtains a traditional mortgage from a bank or lending institution.
The difference between what the buyer obtains from a traditional lender and the purchase price of the home is then carried as a "second mortgage" by the seller of the property on which the seller receives monthly payments and interest. It is estimated that nearly 10% of the real estate transactions...
Mortgages > New Online Resource for Real Estate Agents, Mortgage Brokers and Consumers Matches Buyers With Sellers Willing To Assist With Financing Offers Free Listings Until 10/31
Houston Mortgage Rates
A mortgage rates vary according to the type and the duration of the loan. There are three types of mortgage rates:1.Adjustable Mortgage Rate2.Fixed Interest Rate 3.Variable Interest Rate
A mortgage with an adjustable interest rate takes into consideration that an interest rate may change (usually in response to changes in the Treasury bill rate or prime rate. The purpose of the interest rate adjustment is primarily to bring the interest rate on the mortgage in line with market rates. The mortgage holder is protected by a maximum interest rate (called a ceiling) that might be reset annually. ARMs (Adjustable Mortgage Rates) usually start with better rates than fixed rate mortgages, in order to compensate the borrower for the additional risk that future interest rate fluctuations will create.
A fixed interest rate mortgage has an interest rate that will not change, and a variable interest rate moves up and down based on the changes of an underlying interest rate...
Mortgages > Houston Mortgage Rates