Family Debt Planning

Establishing Financial Confidence

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Mortgages

Mortgages are debt instruments used to finance large secured loans using amortization. For traditional mortgages amortization simply means that the loan has a fixed interest rate, and you pay it over a specific period, usually 30 years.

It is a French term that means “death pledge.” Early lenders used it to reinforce the idea that either you kill the debt by repaying the loan with interest, or the debt kills your right to the land if you fail to pay.

In order to get a loan for your house, you must go through underwriting. This process ensures that you can afford the house. It also ensures that the property’s value is in line with the sale price.

There are also reverse mortgages. With these loans, the bank pays you a specific amount that is borrowed against the value of your home. you can only get these loans if you have significant equity.

Foreclosure is the process where the bank takes possession of your property if you fail to make payments. If you fall behind on your mortgage it is important to seek help quickly. There are many places you can go for assistance if you are not too far behind on your payments.

Topics related to Mortgages

Foreclosure Underwriting

Real Estate Security When Applying for a Mortgage

Posted August 18, 2020 by Robert Linker
Real Estate as Collateral

When you buy a house the real estate is used for security when you get a mortgage. Because the bank can secure the loan you get a lower interest rate over a long term with fixed payments.

The drawback is that you can lose your home to foreclosure if you can’t keep up with the payments.

Read more about security for a mortgage

 

Do Reverse Mortgages Make Sense? (Dis)Advantages and Criteria

Posted April 19, 2020 by Robert Linker
Reverse mortgage advantages and disadvantages

Do reverse mortgages make sense? There are advantages and disadvantages with taking equity out of your home.

You and your home must meet criteria set by HUD in order to qualify for a HECM.

You should always be careful about taking on new debt. While you may get access to funds, you also put your house at risk of foreclosure.

Read more about reverse mortgages.

 

Real Estate Security for a Mortgage: Your House as Collateral

Posted February 4, 2020 by Robert Linker
Real Estate Security for a Mortgage

Real estate security for a primary residence is usually the property being mortgaged.

Real estate is a secured loan because the property is collateral for the loan.

You can use your property as security for other loans, but it can be dangerous because you may lose your home.

Learn about why your mortgage is a secured loan.

 
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