Reverse Mortgages – a Reversal of the Mortgage ProcessWritten by Aditya Thakur
Mortgages have assumed a number of characters from time of their inception. The traditional mortgages used to be of repayment type. Every month mortgagor used to pay a certain amount towards both principal and interest. Sensing hardships that people have to face in making these payments, mortgage providers came up with interest only mortgages. But present day customer is more pampered. He needs a mortgage where he enjoys cash, but is not required to pay a penny towards repayment. A reverse mortgage is a perfect solution to such requirements. It allows a homeowner to plough equity in his home to get cash. While borrower enjoys cash on mortgage, he is rid of any monthly payments. The amount of loan received on reverse mortgage will depend on age of borrower and value of home. The borrower has no obligation to repay loan as long as he continues to reside in house or as long as he survives. To understand reverse mortgage, it will be beneficial to compare it with forward mortgages. The forward mortgages are traditional mortgages. These require a monthly payment either towards both principal and interest, or only towards interest. This way forward mortgage is repaid at end of repayment period. However, reverse mortgage works opposite to forward mortgage (hence name). The lender advances money to customer, for which he receives no payment. This means that debt goes on increasing. Simultaneously equity in home decreases. This is a rising debt and falling equity scenario. The amount of debt can never increase value of home. Thus, mortgage provider, at time of repayment, can only lay claim on home. Reverse mortgage is only available to people who are 62 years or more of age. The home to be mortgaged must be owned by borrower, either individually or as a joint holder. He must have lived in home for majority of years and this must be primary residence of customers. Reverse mortgage is a good source of income for elderly people. The borrower must decide manner in which amount received through reverse mortgage is to be disbursed. The government does not tax amount received on mortgage, and borrower is free to use money in way he likes. Customers who want a regular income can draw a regular monthly payment. Some customers want a credit line opened in their name so that they can draw cash as and when they want. For others availability of a lump-sum amount is more important, since they can apply it for purposes that are more constructive. Even a combination of these options may be used to draw money on mortgage.
| | Education loans can augment the boundaries of what you can achieveWritten by Amanda Thompson
Education never ends – it is not said without reason. We are educated all our lives and getting an education not only is a great achievement but something that gives you tools to find your own way in world. Education is indispensable; little do we realize how much more it can bring to us in terms of worldly amplifications. Anyone can have propensity and natural endowment for education. But one might not have resources to finance their education. You certainly can’t let lack of resources impede you from advancing your prospects through education. Then you accidentally stumble upon word ‘education loans’. Loans for education – you have never thought about it as a feasible arrangement. Education loans can open newer panoramas in regard to your education aspirations.Education loans are open to all people in all its myriad forms. Education loans can realize your education plans or education plans of your children. You can strengthen you own future and future of your son or daughter with education loans. An extensive range of student and parent loans are presented under category of education loans. There are many types of education loans. Discerning about types of education loans will help you in making accurate decision. The single largest resource of education loans is federal loan. The two main federal education loan programmes are Federal Family Education Loan Programme and Federal Direct Loan Programme. In Federal Family Education Loan Programme bank, credit union or school is lender. While federal direct loans programme, department of education is lender. Private education loans are offered to people so that they can provide financial backup to their education plans. Private education loans are not endorsed by other government agencies but are provided by other financial institutions. Private education loans programme are optimum for both undergraduate and graduate studies. Formal education is requisite for future success. Though this is not a hard and fast rule, but education certainly helps you in gaining an upper hand. With universities getting expensive by each day an education loan will certainly give you an incentive to go ahead with your education plans. Each year while contemplating on your education plans thought of finances almost invariably comes in. While working towards you degree, you are constantly plagued about paying for education fees, books, and other living expenses. Education loans can provide funding for tuition fees, board and room, books computer, and even student travel. An education loan can help you with all these expenses. Education loans are sufficient enough to take care of all these expenses. If you have been forced to drop your education for any reason, you can still take up your education at any point of time. Irrespective of your age and also where you have left your education.
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