Pros and Cons of a Reverse Mortgage

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 […]

4 Things to Know Before You Refinance Your Mortgage

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 […]

student loans and mortgage refinancing

How to Pay Off Student Loans via Mortgage Refinancing

The problem of making student loan payments is looming over a disturbingly increasing number of Americans, but now there is a new mortgage loan refinancing program that enables borrowers to change their student loans for mortgage loans at a lower interest rate. This cash-out refinancing program is offered by the personal finance company SoFi, and backed by Fannie Mae (which is controlled by the government, as some of us may remember from the infamous financial crisis of 2008-09). While the program does offer a number of potential benefits, there are also risks to be considered. Benefits of Paying Off a Student Loan via Mortgage Refinancing Thanks to the student loan repayment program, a homeowner with student loans, or homeowner parents that had jointly signed student loans for their children, can obtain a cash-out refinance. SoFi pays the student debt with the extra cash, and the borrower gets a higher new mortgage loan, but at a lower […]