Home Prices In Utah May Spur Higher Reverse Mortgage Activity

Home Prices In Utah May Spur Higher Reverse Mortgage Activity

Mortgage loan agreement application with house shaped keyringReverse mortgage programs in Utah seem like a better option now due to the increasing home rental prices, which are exceeding the salary of low-income households.

Those who earn the national minimum wage of $7.25 per hour would have to work 98 hours every week to afford a two-bedroom unit in the state, according toa National Low Income Housing Coalition report.

Beneficial Market

While higher home prices are a bane for buyers and tenants, it presents an excellent opportunity for retirees to unlock the value of their investment. A reverse mortgage allows Americans who are at least 62 years old to access the equity in their homes without having to sell it. This type of mortgage, however, carries a lot of responsibility for homeowners in terms of real estate taxes and insurance.

Even if there is no monthly payment, those who apply for a reverse mortgage would still need to insure their home and pay property taxes. The risk of default remains a probability as well, since unexpected expenses such as healthcare costs may cause you to miss on payments. You also need to live in the property for the duration of the loan. Otherwise, it would immediately become due.

Risk Management

Retirees can protect themselves by doing a lot of research and consulting with different mortgage companies. You can shop around for at least three mortgage lenders to compare the best rates and find the best deals.

Take note that your reverse mortgage would depend on your age and value of your property among other factors. Older people who own houses with higher values tend to get more money.

Conclusion

If done right, homeowners can see a reverse mortgage as a valuable addition to their retirement fund. When choosing a mortgage firm, it’s better to consult with a company that offers multiple loan options.

Reverse mortgage programs in Utah seem like a better option now due to the increasing home rental prices, which are exceeding the salary of low-income households. Those who earn the national minimum wage of $7.25 per hour would have to work 98 hours every week to afford a two-bedroom unit in the state, according toa National Low Income Housing Coalition report. Beneficial Market While higher home prices are a bane for buyers and tenants, it presents an excellent opportunity for retirees to unlock the value of their investment. A reverse mortgage allows Americans who are at least 62 years old to access the ...

Keep The Interest Rates On Your Mortgage Low With 2 Smart Moves

Keep The Interest Rates On Your Mortgage Low With 2 Smart Moves

Couple consulting a professional about mortage ratesMany people fail to realize that the key to successfully owning a home lies in getting affordable interest rates on their mortgages. Luckily, you can take measures to increase your chances of getting affordable rates.

With the interest rates holding steady at below five percent, now is the time to buy a home, says American Loans, a mortgage company in Salt Lake City. Unknown to many first-time homeowners, low-interest rates on a home loan are the key to building equity in the house.

It means that you get affordable monthly payments that don’t strain your finance and lower the quality of life. However, getting these low rates is not an entitlement, it is a privilege. In that sense, you must earn the right to enjoy these affordable rates.

Eliminate red flags

As with any financial transaction, lenders are keen to minimize losses, and they do this by advancing money to the qualified borrowers. Before approving your application, they will dig into your financial history. If they like what they find, you become eligible for the loan. On the other hand, if they find lots of red flags, they are hesitant to accommodate your request.

Major red flags include carrying too much debt, delinquency on payments, low credit scores, and a low-income level. These factors mark you as a high-risk borrower with a high likelihood to default on your payments. If they don’t deny your loan, you will have to settle for higher than normal interest rates and private mortgage insurance.

Bolster confidence

Before making a home loan application, you should take a few precautions to increase your chances of success. First, you need to check your credit report which is a detailed account of your financial history. Despite the credit bureau’s attempt to depict an accurate account, errors abound.

In fact, 5 percent of the reports contain errors that deal a deadly blow to the victims’ credit scores. You are entitled to three free credit report each year. Scrutinize them and notify the credit bureau of any anomalies that you spot. Doing so can significantly improve your credit score as well as our credit standing.

Mortgage lenders gravitate towards borrowers with an excellent financial standing, rewarding them with friendly terms. With a little bit of effort, you can get into their good books and enjoy these rates as well.

Many people fail to realize that the key to successfully owning a home lies in getting affordable interest rates on their mortgages. Luckily, you can take measures to increase your chances of getting affordable rates. With the interest rates holding steady at below five percent, now is the time to buy a home, says American Loans, a mortgage company in Salt Lake City. Unknown to many first-time homeowners, low-interest rates on a home loan are the key to building equity in the house. It means that you get affordable monthly payments that don’t strain your finance and lower the quality of life. However, ...

4 Mistakes to Avoid During a Mortgage Application

4 Mistakes to Avoid During a Mortgage Application

Mortgage loan agreement application with house shaped key chainPurchasing a house is one of the biggest investments you will ever make. You may need to take a loan to cater for part of the cost of the house, as it allows you to pay over a long period. However, there are little mistakes that may cause your mortgage application to be declined, or fail to get enough cash for the type of home you need. Here are some of the mistakes you should avoid:

Accepting the first offer you get

Mortgage lenders differ in their interest rates and loan terms. Shop around and compare until you get the best mortgage rate in Utah. You can also hire a mortgage consultant to get you the best rates in the market.

Not getting pre-approved

It is important to know if you qualify for a mortgage before looking for a home. A pre-approval goes beyond a pre-qualification for the loan as the bank checks your ability to repay the loan. Unfortunately, most people overlook a pre-approval and eventually fail to get the loan.

Not reading the fine print

Most people are lured by advertisements about the best rates in town and fail to read the terms and conditions found in the fine print. These conditions either throw you out or change the loan repayment conditions advertised. Take your time and read everything. Seek assistance when you do not understand something.

Lying

There is no coating the truth when it comes to financial matters. The lender will go through your financial history and uncover anything that is not correct. When applying for the loan, avoid signing to a blank or incomplete application and do not falsify information. Falsified information will lead to a disqualification

Take your time when choosing a mortgage lender and making applications. Given the amounts involved, you should be careful with terms and interest rates. Moreover, provide all information such that it is easy for the lender to determine if you are creditworthy.

Purchasing a house is one of the biggest investments you will ever make. You may need to take a loan to cater for part of the cost of the house, as it allows you to pay over a long period. However, there are little mistakes that may cause your mortgage application to be declined, or fail to get enough cash for the type of home you need. Here are some of the mistakes you should avoid: Accepting the first offer you get Mortgage lenders differ in their interest rates and loan terms. Shop around and compare until you get the best mortgage rate in Utah. You can also hire a mortgage consultant to get you the b ...