All About HELOC’s (How exciting!)

One of the good things about having a mortgage is the ability it gives you to build up equity in your home.  What's equity you ask?  Well, you can click here or I can tell you really quick.  Quite simply, equity is the amount of money you have already paid against the value of your home, and it is an easy value to determine with a little bit of math. HOW TO DETERMINE YOUR EQUITY The easiest way to find out how much equity you have in your home is to subtract the amount of your mortgage balance (look on your mortgage statement for UPB, Unpaid Principle Balance, or just Principle Balance) from the current value of your home.  For example, if your home is worth $100,000 and you owe $40,000, then your equity is $60,000.  In other words, as you pay down the principle on your mortgage, your equity increases inversely. HOW DOES EQUITY WORK FOR YOU? What makes equity special?  Well, equity can actually work for you if you know how to do it.  Many people borrow against it and use the money they take out to ...

All About Reverse Mortgages

If you are over the age of 62 and you own a house, you have more than likely heard about a Reverse Mortgage.  This is an interesting issue due to the fact that Reverse Mortgages are becoming extremely popular in America these days. Unfortunately, though, many people are afraid of this type of mortgage, which can be attributed to a lack of knowledge on the issue, or just because they may have been misinformed. The truth is, a reverse mortgage can offer extremely beneficial assistance (monetarily) to a senior who may be out of options or who is just strapped for cash. But what exactly is a Reverse Mortgage?  How do they work?  What are the requirements for obtaining one?  All of these questions will be answered in the following guide. In the most basic sense, a reverse mortgage is a special type of loan that lets you convert a portion of the equity in your home into cash. What this means is, the money you have built up over the years by making home mortgage payments can essentially ...