A home loan that you do not have to pay back for as long as youre alive or for as long as you live there? That sounds too good to be true, but thats what reverse mortgages do.
A reverse mortgage is a loan that you make where you do not have to pay back anything for as long as you still possess that property you have purchased. Reverse mortgages provide you with cash which you can use for other investments. By turning the value of your home into cash, reverse mortgages gives you virtually unlimited funds without having to move and even without repaying the loan every month.
There are several ways to give you the cash from reverse mortgages. You can get cash from a reverse mortgage all at once or in a single lump sum. With a reverse mortgage, you can also opt to receive a regular monthly cash advance.
In addition, a reverse mortgage can offer you cash as a creditline account. This creditline account from a reverse mortgage will let you get the amount of money you want whenever the need arises. And if none of these methods suits you, reverse mortgage cash may be given to you using any combination of the abovementioned methods.
Whether or not you want your cash from a reverse mortgage be paid to you in lump or in installment, the main thing is that you do not have to pay anything back until you die, sell your home, or permanently move. Reverse mortgages usually cater to homeowners who are 62 years old and older.
Reverse Mortgage vs. Other Home Loans
In most other loans, a systematic check on your income and assets is done in order to pre-qualify for the mortgage. This is done as an assurance to the lender that you will be able to afford the monthly payments tied with a loan. Since reverse mortgages do not involve any monthly payments, you not have to go through these tedious prequalification procedures. Qualifying for a reverse mortgage is easy and hassle-free. There is no minimum income required and no monthly repayments. And whats more, with a reverse mortgage, you do not stand the chance of losing your home.
The downside to a reverse mortgage
In every story, there is always the other side of the coin. While reverse mortgages have their advantages, they also have a downside. As you know already, reverse mortgages do not require monthly paybacks. This means that with reverse mortgages, you are actually taking out equity from your home and turning it into cash. This does not bode well for your debt or your home equity for that matter.
Heres how it works. Other mortgages require a person to make a down payment when buying a home. As years go on, they use their income to pay back the money they borrowed in making the purchase. This decreases their debt and increases the value of their home.
With a reverse mortgage, everything works in the reverse. You have your home. You convert its value into cash. And then you take out that cash every now and then, thereby increasing your debt and reducing your home equity.
Of course, this is not always the case with reverse mortgages. If your home value grows rapidly or you only one loan on your home, theres every chance that your equity could increase over time.
Whether you are seeking health insurance through your employer or on your own you will be offered a variety of plans. In order to make the proper decision about which plan is right for you it is important to know the basic characteristics of the most popular types of health insurance. After this it is wise to get many quotes on health insurance and compare them. This is a free way to compare plans and prices.
Fee for service
For many years the fee for service plan was very popular and widely used type of health insurance. The insured pays a monthly fee. A deductible is applied to the cost of the services. Some services related to healthy living or emergency services may be exempted from the deductible. Once the deductible has been met the insured and the insurance company share the cost of services. For most companies the split may be 80/20 or 70/30. The company pays eighty or seventy percent, the insured pays twenty or thirty percent. There will be a cap on the total amount of money the insurance company will pay in a lifetime.
Health Maintenance Organization (HMO)
HMOs have become increasingly more common in the last decade. Again, the insured pays a premium which makes him/her a member of the HMO. As a member of the group the member is entitled to visit any of the doctors who are part of the group. These doctors may all work together in an HMO facility or may work in individual clinics as part of a group of doctors under contract to the HMO. Members may have to pay what is called co-pay when they visit the doctor. No paperwork is necessary to validate the claims of an HMO member; however, members may wait longer for non-emergency appointments than they would with a fee for service insurance program. An HMO generally requires its members to have a primary care physician who then refers the member to a specialist if needed.
Preferred Provide Organizations (PPO)
The PPO, a blend of the fee for service model and the HMO model, is a fast growing sector of health insurance. As with an HMO there is a network of doctors from which the insured chooses his/her physician. This physician is responsible for designating the need for specialized care. A co-payment will be required when an office or hospital visit is made. There will also be a deductible and medical expenses will be divided at an agreed upon scale between the insured and the insurance company operating the PPO. A person may choose to use a doctor who is outside of the network. Expenses incurred for medical care outside the network will make the patients share higher.
Please collect as many quotes as possible in order to compare services and rates. This is a free way to learn a lot about all of your options.
Whether you’re a homeowner or renter, insurance provides critical protection.
Homeowner’s insurance protects your home’s physical structure and your personal property. In contrast, renter’s insurance only protects your personal property. Everyone-homeowners and renters-needs liability coverage to provide financial protection in case others are injured on your property or by your actions.
You have the option to insure your home and belongings for either their replacement cost or their actual cash value. Actual cash value is the amount it would take to repair your home or replace damaged possessions after factoring in depreciation. Replacement cost is the amount it would take to repair your home with materials of similar kind and quality, or to purchase new possessions without deducting for depreciation.
It’s a good idea to make an inventory of all of your personal belongings and save receipts for major items, along with a photograph or video of each room. Store copies of the documentation in a safe-deposit box or another off-site secure location in case your home is destroyed.
Following are some helpful considerations provided by The National Association of Insurance Commissioners (NAIC), a voluntary organization of state insurance regulatory officials:
If you have expensive valuables -such as jewelry, antiques or art-you’ll probably want to purchase a “rider” to your policy, as these items are subject to coverage limitations in basic policies.
Damage to your home or belongings caused by flooding is NOT typically included in a homeowner’s policy. If you live in an area prone to flooding, inquire about flood insurance through the federal government’s National Flood Insurance Program (NFIP). Your insurance agent can help you obtain flood insurance.
Insurance Tips for Different Life Stages
At different stages, you’re likely to have different insurance needs. For instance:
• Young singles who are sharing an apartment with unrelated roommates each need their own individual renter’s policy to protect their own possessions.
• Young families that add a swing set or trampoline for their kids should consider additional liability insurance.
• Established families that may be remodeling or building an addition should update their homeowner’s policy to reflect these enhancements.
• Seniors should ask if they are eligible for discounts. And if you’ve just paid off your mortgage -and your homeowner’s insurance was previously paid through your mortgage company-be sure to assume direct responsibility for the premiums so that your policy doesn’t lapse.
Remember, before you sign an application for insurance, take a few minutes to stop, call your state insurance department and confirm that the company is legitimate and authorized to sell insurance in your state.
The information you need about the best term life insurance quote is only a click away when you search for term life insurance online. You dont even have to know anything about the insurance industry to get the best term life insurance quote from an online insurance company.
So many life insurance companies have an online presence that you can shop for anywhere from one year to 30 year life insurance terms. Term life insurance is cheaper than whole life insurance because your family only collects a settlement if you die during the term of the life insurance. If you are still alive at the end of the term, then you have to start looking all over again for the best term life insurance quote.
There are several ways to look at term life insurance. If you want to have life insurance as protection for your family, you can look for the best term life insurance quote online and then change over later to a whole life insurance that provide 30 year life insurance terms or one that lasts for your whole life. You might also want to look at universal life insurance that covers everything.
In getting a term life insurance policy you need to get the best term life insurance quote with monthly premiums that suit your budget. Usually term life insurance policies are for 5, 10, or 15 year terms, but it is possible to get 30 year life insurance plans as well. Since the longer term plans are more expensive, you are probably better off with a whole life insurance policy.
You should contact several life insurance companies in order to get the best term life insurance quote, you need to compare the quotes from different companies. This comparison not only involves the bottom line price, but the length of the term, the monthly premiums and the amount of the death benefit each policy offers. Only then can you make an informed decision about the life insurance protection you have for your family.
Some term life insurance companies will give you a policy with no medical exam. It really depends on your answers to various questions about your age, occupation, and health whether or not you get the best term life insurance quote for such as policy. The younger you are, the better quote you get. It pays to shop early for life insurance.
Looking for best term life insurance quote? Look online. But dont just get the quote, check out the company.
Everyone knows that credit cards are synonymous with debt. However, many people are taking advantage of 0 interest credit cards and making a profit. You just have to learn how to do it before you start. There is no reason whatsoever to make small profits if you are already paying out large sums of money on other debts that you already have. You must first pay off all your high interest credit card debts to benefit.
You must pay close attention to when the introductory offer expires with 0 interest credit cards. If you pay off all your debt prior to the expiration, you will, of course, be saving money.
When using 0 interest credit cards you must try to forget about them and only use them when it is absolutely necessary. You do not want to incur a large debt that you cannot pay back prior to the expiration.
Be sure you have a good credit rating prior to starting on your adventure with 0 interest credit cards.
Now, look for credit card companies that are offering a 0% interest rate. You can find some that offer 0% for six months, 9 months and even some up to a total of 12 months.
Heres how to profit from the use of 0 interest cards. First, transfer the credit limit available on your 0 interest credit card into your bank account as a direct transfer or as cash. Now, transfer the balance you have on your other credit card onto your 0 interest credit card as well, in order to pay off your balance on that card. The money you just received should go into a high interest savings account at your bank. Do not touch this money until your 0% percent is about to expire. You will still owe the money that you transferred on to it, but you will be earning interest on the money in the bank. You will now be able to pay off the balance with the money in the bank and have as well as a chunk of earned interest for yourself.
Remember, for this to work, you cannot run up your payments or charge more on your other card. As long as you have an excellent credit rating, this will work wonders for your bank account and your wallet, if you pay very close attention to the expiration of the 0 interest credit cards before they begin charging the higher APRs. If you do not remember to pay it off prior to the expiration of the 0% interest introductory rate, then you will find yourself owing money at a higher interest rate.
When it comes to using balance transfer credit cards, many consumers are filled with questions and concerns. While there are many benefits to using a balance transfer credit card, it is always best to have these questions answered and the concerns satisfied before moving forward with applying for one of these cards.
How Can Balance Transfer Credit Cards Save Me Money?
Balance transfer credit cards can save you money by reducing the amount of finance charges you pay every year. If you transfer even a small amount of money, such a $1,000, from a card with a higher APR to one with a lower APR, you will see a difference. For example, if you have a credit card with a 20% APR, you will pay $200 per year to maintain that $1,000 balance. On the other hand, you will pay only $80 on that same balance if you have a credit card with an 8% APR. That is a savings of $120! Imagine how much you will save on larger balances.
Even better, the best balance transfer credit cards offer 0.00% introductory APRs, which means you will pay no finance charges while that introductory period is active. With some balance transfer credit cards, this special rate remains in place until the entire amount you transferred is paid off.
What is an “Introductory Rate?”
An introductory rate is a special APR that lasts for a limited time. Often, the length of time this rate is in place is determined by your credit history. The introductory rate can be in place for as long as one year, though more common durations are six months, three months, and one month.
What is a “Fixed Rate?”
A fixed rate is a rate that does not change. Balance transfer credit cards with a low fixed rate may not offer a 0.00% introductory APR, but they might offer a 7.99% APR that remains this low no matter how long it takes you to pay off your balance, rather than skyrocketing up to 19.99% after the introductory period is over.
Why Does Everyone Say Balance Transfer Credit Cards are More Convenient?
Many people feel balance transfer credit cards are more convenient because it places all of your debt in one place. This makes it easier to track your expenses, to create a budget, and to get your bills paid on time.
Is it OK to Pay Only the Minimum Payment on My Balance Transfer Credit Card?
From a legal standpoint, all you are required to pay on your balance transfer credit card is the minimum payment. From a financial standpoint, however, this is a bad habit to get into. If you pay only the minimum payment, it can take you decades to pay off your debt – and that assumes you are not adding any more debt to your balance. So, if you want to get out of debt (and who doesn’t?), it is best to pay off more than your minimum payment. Set up a budget that allows for regular payments above your minimum payment to be sent to the credit card company – and stick to it.
Will a Balance Transfer Credit Card Get Me Out of Debt?
Yes and no. If used alone, a balance transfer credit card will not get you out of debt. If you transfer all of your credit card balances to your balance transfer credit card and pay only the minimum payment, it can still take you years to pay off the debt. Therefore, a balance transfer credit card should be viewed as one tool in you tool belt for helping you work your way out of debt. If used correctly and to its fullest advantage, it can help you get out – and stay out – of debt.