Reverse Mortgage Explained

Written by Ken Chukwell


Can't remember how many times I've been asked "What is a reverse mortgage"? Reverse mortgages are a great way to get a loan using your primary asset. As in all cases of financial lending,repparttar flexibility comes at a price. A reverse mortgage is a loan using your house and is referred to as a "rising debt, falling equity" kind of deal.

To compare reverse mortgage to a more traditional one,repparttar 125276 type of mortgage commonly used when buying a house can be classed as a "forward mortgage". To qualify for forward mortgage, you must have a steady source of income. Becauserepparttar 125277 mortgage is secured byrepparttar 125278 asset, if you default onrepparttar 125279 payments, your house can be taken from you. As you pay offrepparttar 125280 house, your equity isrepparttar 125281 difference betweenrepparttar 125282 mortgage amount and how much you've paid. Whenrepparttar 125283 last mortgage payment is made,repparttar 125284 house belongs to you.

Onrepparttar 125285 other hand a reverse mortgage process doesn't require thatrepparttar 125286 applicant have great credit, or even that they have a steady source of income. The major stipulation is thatrepparttar 125287 house is owned byrepparttar 125288 applicant. Generally, there is also a minimum age required as well,repparttar 125289 olderrepparttar 125290 applicant,repparttar 125291 higherrepparttar 125292 loan amount can be. As well, reverse mortgages must berepparttar 125293 only debt against your house.

Differing from a conventional "forward mortgage", your debt increases along with your equity. Instead of making any monthly payments,repparttar 125294 amount loaned has interest added to it - which eats away at your equity. Ifrepparttar 125295 loan is over a long period of time, whenrepparttar 125296 mortgage comes due, there may be a large amount owed. Furthermore, ifrepparttar 125297 price of your home decreased, there may not be any equity left over. Onrepparttar 125298 flip side, if it was to increase, this could allow for an equity gain, but this isn't typical ofrepparttar 125299 marketplace.

Secured Personal Loans - What You Need To Know About

Written by Tom O'donnell


Loans that are secured against property are called secured personal loans. They are suitable for when you are having difficulties getting an unsecured personal loan, are trying to raise a large amount, or you just have a bad/poor credit history. Usually, lenders are more flexible when it comes to secured personal loans, which makes them worth taking into consideration if you want to buy a new car, make home improvements, or takerepparttar luxury holiday of your life.

Here is a list of benefits of a secured personal loan:

You have lower monthly repayments than an unsecured personal loan

You can borrow more money

Repayments can be spread over a longer period of time

Because a secured personal loan is a type of loan available to people with securable assets (usually homes), they are often referred to as 'homeowner loans' or just 'home loans'.

To be eligible for secured personal loans you don't even have to own your own home outright. You can putrepparttar 125275 proportion ofrepparttar 125276 home that you own up as a security, if you have a mortgage.

Because secured personal loans are secured on property, many ofrepparttar 125277 lenders will approve your loan 'ignoring'repparttar 125278 fact that you have a history of adverse credit such as arrears or even county court judgements. This makes themrepparttar 125279 perfect choice for people who can't qualify for a loan from their local bank.

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