Reverse mortgages are rapidly gaining in popularity, in part due to the large baby boomer population now entering retirement. A reverse mortgage is very different than any other type of loan so it’s important to weight the pros and cons before deciding it’s the right option for you. Pro: No monthly payments are required As long as you remain in your home, there will be no payments necessary on a reverse mortgage. Instead, you receive a stream of income from your equity. The loan will only become due once you are no longer living in the home. Pro: Multiple ways to receive proceeds A reverse mortgage creates a source of income with the ability to select the amount you receive either as regular payments, a lump sum, a line of credit, or a combination of these options. Pro: It won’t affect Medicare or Social Security The money you receive from your reverse mortgage will have […]

Refinancing your mortgage can help you lower your monthly mortgage payment and save interest in the long run. It can also give you greater stability if you want to refinance from an ARM into a fixed-rate loan or the cash for home renovations if you choose a cash-back refinance. Still, refinancing is a big decision and it’s best to be informed. Here are 4 crucial things to understand before you decide to refinance. #1. Know how much equity you have Before you can refinance, you need to know how much equity you have in your home. This is one of the primary qualifications for a refi loan, but the amount of equity depends on the lender and loan product. In general, you will need at least 15% equity to qualify, but you will likely need more equity if you are choosing a cash-out refinance. #2. Know what it will cost In general, refinancing costs anywhere […]