Reverse Mortgages: Not a Retirement Cure-All U.S. News & World Report (blog)
The best way to fund retirement is to start saving early and often. Unfortunately, there are millions of Americans that won't have enough savings to meet everyday expenses in retirement. One method some flock to for financial help is the reverse mortgage. Essentially, a reverse mortgage allows homeowners to turn the equity in their homes into an income stream.
Typically, this option comes with significant costs and is not something normally recommended as a first resort. However, if a reverse mortgage is your only option to make ends meet in retirement, you should be fully aware of the requirements and costs involved.
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You may not be eligible for a reverse mortgage. In order to qualify for a reverse mortgage, you must be at least 62 years old, own your home with some equity, and live in the home as a primary residence. In addition, you can't be delinquent on any taxes owed.
Why You Need Home Mortgage Payment Protection
I am not generally a Debbie Downer. My first thought is not thinking about the worst. I hate thinking of what would happen if my husband lost his job. Truth is, rarely anyone really thinks about job loss until it is staring you in the face. With company closings, cut backs, and job loss in America at a 15 year high, it forces us to think of the “what ifs” in order to better prepare for the future.
One of the biggest fears accompanied with job loss would be making the mortgage payment each month to bypass being foreclosed on.
Home mortgage payment protection will take some of the “what ifs” out of your life when it comes to job security. We also have home mortgage insurance in place in case something happens to my husband – our homes would be automatically paid off, giving me a huge peace of mind.
What is home mortgage payment protection?
Simply put, home mortgage payment protection is a safety net for your mortgage payment in the event of unprepared job loss or unforeseen sickness. If you ever were to lose your job, your mortgage payment would be covered, thus eliminating the fear of being foreclosed on.
Why do you need a home mortgage payment protection plan?With the ups and downs of employment, you want to make sure that in the event that the unthinkable does happen, your assets are covered. A home mortgage payment protection plan is not something you can put off for tomorrow. You can not wait until you have enough money. Many protection plans are tax deductible and offer incentives after so many years of service. With all of life’s uncertainties, this is not something you can afford to miss.
So, what is your game plan?In today’s climate of uncertain job security, do you have a game plan if the worst was to happen? If you lost your job today, do you know how you would pay for bills, sickness, your mortgage? I know with four kids and one on the way, things would be more than a little tight for my family.
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Mortgage payment calculations formula
Mortgage payment calculations formula
mortgage payment?
I have worked in the mortgage industry for many years. So correct me if I am wrong, but as long as you make your P&I on the mortgage every month, they cannot report you to the credit bureau. I am fighting my mortgage company on the amount of escrow being added to the payment, and don't want to over pay into my escrow account any longer.
Depending on the state you reside in-if you signed an escrow disclosure statement clearly indicating all the impounds during closing & your LTV is greater than 80%, the mortgage company can asses you late fees & report you to the credit bureau. Double check your current LTV/CLTV's & look into escrow waivers. Good Luck.
What is the problem with escrows. Show the lender your insurance bill and your tax bill. These are the amounts that you owe.
Can the bank apply a payment for mortgage to another loan?
We have (2) loans, our mortgage and a line of credit on our home equity. My husband lost his job and we were trying to keep up the payments on our mortgage. When he paid a payment he used a payment coupon for the mortgage loan. Instead of applying the whole payment to our mortgage, the bank put some of the payment towards (1) month of the mortgage loan and the rest towards the home equity loan. So now we are still (1) month behind on our mortgage payment and the home equity loan is paid for about (4) months ahead of time. We are trying our best to keep this house.
Yes my husband used a payment coupon with the loan number on it and he received a receipt for the amount and the loan number was on the receipt also.
So you will need to consider that when trying to work things out.
I live in UNITED STATES. I really have never seen goodness shown to me this much in my life, i am a struggling mum with three kids and i have been going through rough times in my life, and in all these hard times, a worse incident aoccured, i lost my job which was my only means of survival and things became really bad as i had bills to pay and my last son suffered from a knee injury when he fell from a tree and the doctor informed me that he needed a surgical operation for his knee in order for him to walk again. life was really useless to me as i had no one to run to, and each night i sat down crying until one day, i read an advert on yahoo answers of a man that stated that he could help people in my shoes with loans, base on my desperate situation, i had no choice but to try, and so shocking and suprising, it was like an impossibility becoming a real possibility, even with my bad credit i got a loan of US $50,000 within 48 hours, and my sons
surgery was done. I thank God it was successful and now i am okay and living in comfort with my kids, and i said to my self, i have never seen this kind of wonder in my life before. I've decided to tell it to the whole world and i need every one to thank God for Mr.Lee Cook, the man whom God used to rescue me and my family even when all hope had been lost. I need to tell every one that no matter how dark and sinful the world is today, there are still God fearing and reliable people on earth, and if you are in my former situation or require any kind of loan legitimately, i will advice you contact this Godly lender, Mr.Lee Cook, he is the CEO of PEAK FINANCIAL FIRM INCORPORATED, you can reach him via Email: peak_financialfirm@yahoo.com
I'm posting this message everyday on yahoo answer, in order to express my everlasting gratitude to Mr.Lee Cook.
Please i need you all to pray for this man for me.
Are there any mortgage payment assistance programs for people with low incomes due to job losses?
My husband left active duty military and went back to the reserves. We took a 3,000 dollar a month paycut and are having trouble making our mortgage payments. We've had the house for 2 years and it's a VA loan. Are there any mortgage payment assistant programs to people like us here in Colorado? We are trying to avoid foreclosure at all costs. If we could get help with the payments until it sells (houses aren't selling in our neighborhood right now) we could avoid a big headache for us in the future. Anywhere we can turn to?
By the way,
No he was forced to quit active duty because he tore his ACL in PT and Tricare waitlisted a surgery and then said they wouldnt fix it. HE DID have a full time job waiting for him once he was off active duty but because of his knee not being able to be fixed, the couldn't bring him on board as a police officer. He is currently working 2 jobs, and SO AM I despite the fact we have a 1 year old. We are overworked and getting sick and still cant make up the 3000 dollars nor afford to fix the knee. We are NOT hillbillies who dont pay our bills. We each work 60 hours a week between both of our jobs.
You wouldn't qualify.
Your husband didn't lose his job, he quit his job, there is a HUGE difference.
Sorry to sound harsh, but programs weren't designed for that purpose. The smart thing to have done is to have had a full time job BEFORE he left active duty military.
Is he even looking for a job? Are you? Is there a reason why one or both of you can't work two jobs?
The reserves is only one-weekend a month...where did he think the money was going to come from?
Yes, there are a few options for you. Checkout http://mortgage.creditmortgagepro.com for some useful info and tips on the matter. Good luck!
How do you calculate what your mortgage payment will be without using a mortgage calculator?
Can somone show me how to calculate a mortgage payment
like for example
what is the monthly payment on a $200,000 mortgage at 6% interest over 25 years?
Can somone show me how to calculate a mortgage payment
like for example
what is the monthly payment on a $200,000 mortgage at 6% interest over 25 years?
I need to know how to do the mathematical calculations, don't just give me the anwser.
monthly payment = interest portion + principal portion
m1=12 in us the interest is compounded monthly
(in canada m1=2, interest is compounded semi-annual)
m2=12 payment every month
YR=25
%int=6 percent annual interest
n= m2 * YR = 12 * 25 = 300
int=%int / 100 / m1 = 6 / 100 / 12 = 0.005
INT = (1 + int) ^ (m1 / m2) -1
INT = (1 +0.005) ^ (12 /12) -1 = 0.005
PV = loan = 200,000
F1 = interest portion of mortg
F1 = PV * INT = 200,000 * 0.005 = 1000
F2 = equal monthly payment factor
F2 = 1 - [1 + INT] ^ [ - n ]
F2 = 1 - [1 + 0.005] ^ [ - 300 ]
F2 = 0.77603432
PMT = monthly payment = F1 / F2 = 1000 / 0.77603432
PMT = 1288.60
M = P [ i(1 + i)n ] / [ (1 + i)n - 1]
Where M is the monthly payment. i = r/12. The same formula can be expressed many different way, but this one avoids using negative exponentials which confuse some calculators.
Microsoft Excel has an amortization table template that you can use. If you do not have in your computer, go to Microsoft's website. Type amortization table in the search bar. Download it from there.
How does making your mortgage payment bi-weekly save you money?
I got a letter in the mail from the bank that says paying our mortgage payment bi-weekly instead of monthly could save us $40,000 to $100,000 in interest and reduce our mortgage term by 7 to 9 years without refinancing. How does this work?
The "interest on 15 days instead of 30" isn't always true. Many mortgage companies who offer this program just hold the first half till the second half arrives. The mortgage company might make some interest, holding all those half payments for 15 days, but you don't.
The real benefit is that paying every 2 weeks make for 13 months. You make an extra payment which goes right to the principal.
You don't need to pay the mortgage company the $300 or $3000 (whatever the current fee) to set this up. You can pay extra on your principal anytime you want. Even paying as little as $10 every month will shorten your loan.
A. You end up paying more of your principal sooner and therefore pay less interest over the period of the loan because 1/2 of your payment only gathers 15 days of interest and not 30.
B. The other issues is that if you make payments biweekly you end up, normally, having a higher monthly payment. A year has 52 weeks so you would end making 26 payments which would equal 13 months worth of payments in a year.
if you can afford it, definately choose this option and choose a 15 year versus a 30 year mortgage.
best of luck.
What affect does a larger down payment have on mortgage payments?
I'm in the first steps of buying a condo, and I'm a bit confused as to what a larger/smaller down payment actually does to the mortgage payment. In all of the mortgage payment calculators I've gone to online, increasing or decreasing the down payment has no effect on the monthly payment and only decreases the term. I am confused because I set the term to 30 years, but its still changing the life of the loan.
if you can put enough down to shortin
up the term, 20-30%...the only time youll ever see what your saving, is on paper before you sign on the dotted line....do the math, see what you can live with, and remember the future.....
As far the effect on your payment, the rule of thumb is $7 per thousand. Put ten thousand down and the payment drops about $70 a month assuming an interest rate around 7%.
I hope this helps.
Also if you do not put down at least 20% you will have to pay PMI--private mortgage insurance--which is for the benefit of the lender NOT you.
I wonder if you arrowed back to enter a different term or something that made the calculator not work. Or did you have a fixed monthly amount that was set when you used the calculator? Something went awry.
How long after closing, before my first mortgage payment is due?
I am closing on a house in the next week in Illinois. I am planning on spliting up my mortgage payment into a bi-monthly payment. Any ideas as to how long after closing before I have to make my first payment?
first payment will be due in september.
How do I get a late mortgage payment off of my credit report?
How do I get a late mortgage payment off of my credit report? I mean I'm totally current on my mortgage now. I want this off of my report. Thanks
it will stay on your credit report for 7 years.
How can I get my mortgage payment and principle lower when I am paying on time?
Couple of my friends have their mortgage payment and principle lower by their lender because their can't afford it any more and they stop paying. How can I do it when I am paying mine on time all the time?
Even if your paying ontime you still may be able to talk your lender into renegotiating "if" you can prove the payment now or in the future is going to cause you to default on the loan "and" your not able to sell or shortsell the property.
What is the best type of mortgage loan for the lowest monthly payment?
30 year fixed? 2/1 ARM? I need a loan with no PMI and low points and the lowest possible mortgage payment a month. What Im working with:
Credit score 600
Annual assets (Salary) 34500
Monthly Debt: 70
House loan amount: 106000
Available to put towards closing costs (Including down payment) 12000
Any ideas?
obviously you haven't been watching or reading about the mortgage meltdown. 30 year fixed and certain lenders will ignore the rip off PMI crap. Shop around but insist on 30 year fixed.