Home Equity Loans – Research Your Lender CarefullyWritten by Charles Essmeier
Continued from page 1
interest rate.
Previously unmentioned fees turn up on application at closing. Again, by presenting these previously undisclosed fees at closing time, borrower is pressured to sign.
Blanks on application form. It’s hard to believe that a lender would present a blank form and assure borrower that blanks will be filled in later, but this actually happens, and borrowers actually sign such deals. Remember, your signature on form constitutes your agreement to terms, even if terms are filled in later.
These problems can be avoided by taking a few simple precautionary steps. Ask about total fees and interest rates ahead of time. Inform your lender that you fully expect to see those same figures on documents at closing, and make it clear that you will not sign documents that state otherwise. Make certain that you have provided honest information to lender. Refuse to sign any blank documents. These things may seem obvious, but when closing approaches, borrowers tend to get in a hurry, as they are eager to get closing out of way. Borrowing against your home is not something to take lightly; you can lose your home if you unknowingly sign a predatory document. Take your time.
©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.
| | Reverse Mortgage – Be Sure You Need It Before Applying For OneWritten by Charles Essmeier
Continued from page 1
people who take out a reverse mortgage opt to take their funds in form of a line of credit, rather than a lump sum or monthly payments. There are advantages to a line of credit, which allows borrower to use funds by simply writing checks against loan. The primary advantage is that borrower only uses funds when he or she needs them. Because of this, interest only accrues on money if borrower actually writes checks. Borrowers should be aware, however, that costs of loan, which can be substantial, apply even if borrower doesn’t write any checks against loan. If homeowner takes out a line of credit and decides to sell home shortly thereafter without ever having written a check against loan, borrower will not owe lender any interest or principal, but borrower will lose money paid for cost of loan, which is not refundable. If borrower rolled costs into loan itself, they could owe payments even if they never wrote a check.
In short, borrowers considering taking out a reverse mortgage should make sure that they plan to stay in their home for quite some time and that they actually need money from such a loan. A reverse mortgage is a great idea for those who have a specific purpose or use in mind, but as an emergency source of “rainy day” funds, it can be an expensive choice.
©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.
|
