What the heck is negative amortization? Answer: Amortization means paying off a loan with regular installments, so the amount you owe goes down with each and every payment. Negative amortization means that even when you pay, the total amount you owe will still increase since you are not paying enough to pay the interest. Your loan provider may offer the option to make a minimum payment which does not cover the interest you owe. The outstanding interest gets added onto the amount you borrowed, and the balance that you owe will increase. Typically, after a period of time, you’ll have to begin to make payments to cover principal and interest.…

What exactly is a reverse mortgage? Answer: A reverse mortgage is a kind of loan which allows older home owners in West Linn Oregon to borrow from the equity in their homes. It’s labeled a “reverse” mortgage because instead of making payments to the lender, you get money from the lender. The funds you receive along with the interest charged on the loan add to the balance of your loan every month. Over time, the mortgage balance grows. Because home equity is the value of your home less any loans, you have less equity in your home as your loan balance increases, that may become a problem if you ever…

If my spouse dies or moves to a nursing home, what will happen with my reverse mortgage loan in West Linn Oregon? Answer: It depends on if you and your spouse are co-borrowers on the West Linn reverse mortgage loan, and when the loan was made. The majority reverse mortgages that home owners in West Linn apply for are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. Inside of the rules governing HECMs, if you are living with a spouse, it is a good option to make your spouse a co-borrower when you apply for…

So how is a reverse mortgage different from getting a a standard mortgage in West Linn Oregon? A conventional mortgage can be used to purchase or refinance a home in West Linn. The loan company lends you the money to purchase or refinance the home. In return, you promise to repay the mortgage company the funds you financed, plus interest, over many, many years. A reverse mortgage is generally used to get cash out of your West Linn house. As opposed to borrowing to buy a house, you’re borrowing against a house which you already own. This enables you to make use of the money now for expenses, and pay…

What are the differences between a mortgage company and a servicer in West Linn Oregon? Your mortgage broker will be the financial institution that loaned the money. Your mortgage servicer would be the company that supplies you with your loan statements. Your servicer also manages the day-to-day tasks for taking care of the loan. Your loan servicer generally processes the loan payments, responds to borrower requests, keeps track of principal and interest paid, manages your escrow account (if you’ve got one). The loan servicer could trigger foreclosure under specific situations. Your servicer may or may not be the very same company that initially provided you your loan. TIP: To see…

The Truth In Reverse Home loan Advertising in West Linn Oregon It’s possible you’ll notice tempting pictures of youthful retirees on the golf course or experiencing other fun activities in a reverse mortgage ad. A reverse mortgage is a unique kind of loan which enables West Linn Oregon property owners 62 and older to borrow against the accumulated equity in their houses. The reverse mortgage will need to be paid back once the borrower passes away, moves, or no longer resides in the home. Seniors said the ads made reverse mortgages look like a great way to travel around and enjoy retirement while they were still young and active. Yet…

What occurs should I need to move out of my West Linn house into a care house, or even to stay with family, and I have a reverse mortgage? Answer: For those who have a reverse mortgage and you no longer live in your West Linn Oregon house for the vast majority of the year, or maybe you will need to move out of your house for health related factors for greater than 12 sequential months, you may have to pay back the reverse mortgage loan, that may result in selling your property in West Linn Oregon Nearly all reverse mortgages funded in West Linn are House Equity Conversion Mortgages…

If I take out a reverse mortgage loan, will the loan company own my West Linn home? Answer: No. When you take out a reverse home mortgage, the title to your West Linn Oregon property stays with you. Once you move out, sell your property, or the last surviving borrower or eligible non-borrowing spouse passes away, you or your estate need to pay off the HECM home loan, but you will in no way have to pay over the appraisal value of the home. The reverse loan balance will include the sum you have received in cash, along with the interest and fees which have been added to the loan…

Are there any limits to the upfront charges a West Linn Oregon bank may charge for getting a reverse mortgage? Answer: The majority of reverse mortgages today are insured by the Federal Housing Administration (FHA), for its Home Equity Conversion Mortgage (HECM) program. The specific fees listed below are for HECM loans. In addition to HECM reverse mortgages, some West Linn Oregon mortgage companies could possibly have what are called proprietary reverse mortgages or ones that are not insured by the FHA, which often have different fees. This is a list of common costs that lenders in West Linn charge at the start of a home loan. The Upfront Mortgage…

Will I still have to pay my West Linn Oregon taxes and homeowner’s insurance with a reverse mortgage loan? What about the costs of repairs necessary to maintain my house? Answer: Yes. In the event you don’t pay your homeowner’s insurance premiums and taxes, or take care of needed repairs, it’s possible to lose your property to foreclosure. A large number of reverse mortgages are House Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. With a HECM, when you don’t pay your insurance and taxes, or you let the shape of your home to deteriorate while…