A Consumer’s Guide to Mortgage Refinancings

Have interest rates fallen? Or do you expect them to go up? Has your credit score improved enough so that you might be eligible for a lower-rate mortgage? Would you like to switch into a different type of mortgage?  The answers to these questions will influence your decision to refinance your mortgage. But before deciding, you need to understand all that refinancing involves. Your home may be your most valuable financial asset, so you want to be careful when choosing a lender or broker and specific mortgage terms.

What You Should Know About Refinancing

Refinancing is a process in which you pay off one or more existing debts with a new home loan. If you have perfect credit, refinancing is sometimes a good way to obtain a lower interest rate or to convert a variable rate loan to a fixed rate. However, if you are in the midst of financial difficulties, if you have too much debt, or if you have bad credit, refinancing is loaded with pitfalls. We recommend that you be very careful when
refinancing debts. Many refinancing loans hurt consumer. Here are twelve things to consider before refinancing...

Reverse Mortgages: Are They for You?

If you are 62 or older, or about to reach that milestone, you may find yourself considering a reverse mortgage to add to your retirement income or meet health care or other financial needs. This Consumer Advisory, issued by the Office of the Comptroller of the Currency, is designed to help you better  understand reverse mortgages. Reverse mortgages are complex loans and are secured by your home. It is important to understand the terms, risks, and costs before you sign a reverse mortgage contract. Make sure to consider alternatives to reverse mortgages...

Answers about Reverse Mortgages

Reverse mortgages provide income or a line of credit to homeowners who are 62 or older by allowing them to tap their home equity. The Federal Housing Administration insures 90 percent of the reverse mortgages known as Home Equity Conversion Mortgages, or HECMs. These mortgages do not require repayment until the homeowner dies, permanently moves, or fails to maintain the property or pay property tax. Remaining equity belongs to the borrower or the borrower's heirs...

Some Tips for Consumers Considering a Reverse Mortgage

Are you considering a reverse mortgage? Better look before you leap. While a reverse mortgage could put money in your hands, the transaction is likely to be quite confusing. A reverse mortgage deal could also put a lot of your money in someone else’s pocket. Still, if you are a senior and a home owner and short of cash to make ends meet, a reverse mortgage can be a lifesaver. That’s because a reverse mortgage taps your home equity – that’s the market value of your house minus the outstanding balance on any existing mortgages – for cash...

Reverse Mortgages

If you’re 62 or older and looking for money to finance a home improvement, pay off your current mortgage, supplement your retirement income, or pay for healthcare expenses, you may be considering a reverse mortgage. It’s a product that allows you to convert part of the equity in your home into cash without having to sell your home or take on additional monthly bills...

Interest Only Mortgage Payments and Payment-Option ARMs – Are They For You

Owning a home is part of the American dream. But high home prices may make the dream seem out of  reach. To make monthly mortgage payments more affordable, many lenders offer home loans that allow you to (1) pay only the interest on the loan during the fi rst few years of the loan term or (2) make only a specifi ed minimum payment that could be less than the monthly interest on the loan...

Incumplir el Pago de su Hipoteca Tiene Consecuencias Costosas

Si usted no paga su hipoteca en fecha o si paga un monto menor a su mensualidad, usted incurre en incumplimiento de pago de su préstamo. Las consecuencias del incumplimiento de pago pueden ser costosas. La Comisión Federal de Comercio (Federal Trade Commission, FTC), la agencia nacional de protección del consumidor, dice que es importante entender los costos que tiene el incumplimiento de pago.

Defaulting on Your Mortgage Has Costly Consequences

If you don’t pay your mortgage on time or if your payment is for less than the amount that’s due, you’re in default on your loan. The consequences of default can be costly. The Federal Trade Commission (FTC), the nation’s consumer protection agency, says it’s important to understand the costs of default. The agency also stresses that if you’re having trouble making your mortgage payments, contact your loan servicer to discuss your options as soon as you can. The longer you wait to call, the fewer options you have...

Información de la FTC para Consumidores

Cuando usted obtiene un préstamo hipotecario, es posible que piense que la entidad de préstamo conservará y administrará su préstamo hasta que termine de pagarlo o hasta que venda su casa. Frecuentemente no es así. En el mercado actual, los préstamos y los derechos de administrarlos se compran y se venden con bastante frecuencia. En muchos casos, la compañía a la cual usted le envía sus pagos no es la compañía dueña del préstamo.