Smarter Market Info

A little bit about Plymouth

Plymouth is situated in the South West Corner of England in the County of Devon, undoubtedly one of the most beautiful counties in England. Plymouth is steeped in history with the main focal point on the harbour where the Pilgrim Fathers set sail, Darwin and Cook. Plymouth has obviously moved on since those days but still keeps its heritage while moving into the 21st Century.

Plymouth is a large City with the Plymouth City Council area housing a population of 240,718. Of course like all large Cities there are all the expected facilities and good rail, road and air links to other parts of the UK. Below are some links that may give some more information on Demographics, facilities available and places to see in Plymouth and the surrounding areas.

Some useful links:-

Plymouth City Council

UpMyStreet for Plymouth

Looking for your Rental Property

When starting to think about a rental home, whether it is a long term rental or a short term rental it can seem quite a large task. The key to making your move as painless as possible is organisation. In this article are some tips on how to handle the process and make the move a little less of a headache.

Use the Four Stage Rule

When looking for your rental property there is an easy to remember 4 stage process, these stages are:-

Do your Property Research

Ensure that you are fully prepared before even considering starting your search. It is vital that you are aware of your restrictions within the market place. Make sure you are aware of what type of property you can afford to rent. Which areas of the City are suitable for you and match your requirements.

The best start is simply sit down and make a list of what is important to you. This needs to include two different sections. The first section is within the property for example you may only want to rent a flat, or maybe a house with a garage, you may require three bedrooms, a garden, large kitchen, central heating, electric shower, two bathrooms. Make a note in order of importance your top 10 requirements.

The second section needs to be area requirements, for example, maybe you need to be close to the train station, near the town centre, on a bus route, close to the motorway, near to the shopping development, a quiet area. Or maybe you have specific locations that you want to live within the City.

Secondly is setting your budget. It is vital that you know exactly how much you have per month or per week to be able to afford your rental property. Sit down and make a note of all of your outgoings including household amenities such as gas, water, electricity. Make a provision for council tax, petrol, loans, credit cards, car loan and all other outgoings. From this you can decide on how much per month you are able to afford on your rental property. It is highly important that you stick to this budget or below in order to ensure that there are no complications with your rent payment to the letting agent in the long term.

That is the worst bit out the way, now you can begin on stage two of the four step process.

Start your Property Search

There are a number of methods to achieve the desired result; this could include visiting all the letting agents in the town (very time consuming). Maybe complete a search of all the websites on the internet one by one (again very time consuming).

Alternatively you could try using one of online property portal sites, depending which you chose it is possible to send multiple emails to the letting agents expressing your requirements (let them do the hard work in contacting you with property) or maybe do a search on the site of listed property and contact them to arrange to have more details on specific ones advertised or arrange a viewing. Or simply gain quick and simple access to multiple letting agent websites from just one place.

A good site to start is Rentright this offers all of the above and much more, why not visit the Rentright Plymouth Page now and see what property is being advertised by the registered letting agents or contact all the agents with your details.

There are many other sites on the internet designed to make your search much easier, not all are dedicated to rental property and if you cannot find what you are looking for on one you may on another.

Arrange to View your Chosen Rental Home

Once you have made contact with the letting agent then arrange the viewing of the property. It is important that you remember your criteria that you set earlier. Take an impartial person with you on the visit as they may be able to give you some guidance and opinion on what they think of the property. Revisit the area on different times to view the rental property in order that you get a good feel of the location. Don’t make a hasty decision there and then, think about it for a while and ensure you are completely happy to go ahead. Once you have given the letting agent the retaining deposit if you change your mind then this will be lost.

Make your Move

Once you have chosen your rental property then on move in day remember that you will need normally but not in all instants, 1 months’ rent and 1 months retaining deposit for long term rents. Then you will sign the short hold tenancy agreement and be given the keys to your new rental property. If the house is furnished then there maybe an inventory make sure that this is correct, also if you see any damage that you had not spotted previously then be sure to make the letting agent aware of this as soon as possible.

The letting agent is there to help you so if there are any problems with the property then make sure to seek advice from them; if it is a fully managed letting service. If it is a tenant find only then be sure to make contact with the landlord (who of which you would have met previously) if there are any problems.

Some Letting Agents in Plymouth that may be of Interest

Just Lets, Trundlewood Property Management, Bullard & Scholes Residential Lettings

Chris Courtis is the co-founder of Rentright Property Letting Portal where you can find information and property for rent. Rentright is a resource available for Property Letting Agents to advertise their property and covers the whole of the UK

Statistical data in this article has been used and permitted by UpMyStreet and is accurate at the date this article was written.

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The mortgage industry has long been able to adapt to changing market conditions. When interest rates rose to double-digit levels in the late 1970’s, the industry made more adjustable-rate mortgages available. When the savings rate began to drop and Americans had less to put down on homes, the industry made more flexible loan products available that did not require as large a down payment. And now, as immigrants begin to comprise a larger and larger portion of our population, the lending industry is begun to introduce loans that are tailored to an immigrant population that may not have solid credit histories or Social Security numbers.

These loans, known as ITIN loans, are offered to illegal immigrants that do not have a Social Security number. They can qualify for the loans by obtaining an Individual Taxpayer Identification number (ITIN) from the Internal Revenue Service. The IRS issues these numbers to people who are required to pay taxes but are ineligible for a Social Security number. The government uses these numbers for tax purposes only. A few small banks, as well as national banks Citibank and Wells Fargo, have started to issue loans to customers who have an ITIN but not a Social Security number. Most of these loans have been issued in California, but they will probably be available in other places soon.

The process of obtaining an ITIN loan is somewhat more complicated than that of applying for a conventional mortgage. Applicants with an ITIN usually have a credit history that is less well documented. As a result, the usual background work required issuing such a loan is more complicated and more time consuming than for a conventional mortgage. In addition, fees and interest rates will tend to be higher than for other types of loans in order to compensate lenders for the additional trouble and additional risk.

While there is plenty of opposition to lending money to people who are here illegally, few would argue that a neighborhood that consists of homeowners, rather than renters, is a better neighborhood for everyone. Owners are much more likely to take care of their property and show concern for the neighborhood as a whole than are renters. Thus, any lending plan which encourages people to buy, rather than rent, is good for everyone.

©Copyright 2006 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to personal bankruptcy, debt consolidation, establishing credit and credit counseling and HomeEquityHelp.net, a site devoted to information regarding mortgages and home equity loans.

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Recently I closed on the sale of two homes. They were located about a mile apart and had comparable market values. However, beyond these two similarities, the two deals were very different from each other. Let me discuss in more detail the similarities and differences of the two deals.

My business partner and I purchased both properties from families who were in preforeclosure. The leads for each property came from letters that I had mailed to families who had recently received Notices of Default. The one family responded to me within 24 hours of receiving my first letter. I met with them within two hours of receiving their phone call and signed a contract with them on the spot to purchase their home. The other family responded to me after receiving the fourth letter from me. After a couple of broken appointments and two meetings we signed a contract to buy their home. With each home we did a “kitchen table” type closing within a couple of days of signing the contract. Both homes were purchased “subject to” the existing financing remaining in place. The earnest money given for each home was one dollar.

First Deal

We began marketing the first house by advertising it in the newspaper at market value and putting signs in the neighborhood and nearby intersections. We had a verbal agreement with the seller that they would clear all of their belonging out of the house within two weeks. The house was very messy and dirty. When the sellers failed to make any progress clearing the house we went ahead with the marketing and reduced the asking price. Within two weeks we had only received a few phone calls from mostly non-interested prospects.

At this point we reduced the asking price further and changed our signs to notify the public that owner financing was available. At that point we started to get a larger number of phone calls from truly interested prospects. Our owner financed terms and the lower than market value asking price separated us from the hundreds of realtor represented homes that needed bank financing.

With the second home, purchased a month later than the first, we immediately marketed it with owner financing. When we purchased the home we stipulated in the contract that the seller had to vacate the property in two weeks or be charged a fee for failure to do so. The seller was agreeable and cooperative and moved quickly to remove their belongings from the house. The seller of the first house was still dragging their feet and the house was still a mess.

Shortly after changing the marketing of the first house, we received an offer from a highly interested buyer. This house was truly ideal for this family and we wanted to help them get into it. They offered to buy it with bank financing and we agreed to sell it to them. There was still enough time before the foreclosure auction to close the sale with bank financing.

I cautioned the buyer that he should seek a loan other than an FHA loan since we had not held title to the property long enough for FHA to approve a new loan. In case you didn’t know, FHA recently changed a rule that now requires a property to be on title at least 90 days before they will approve a new loan. So guess what the buyer did?

Right. His mortgage broker and his real estate agent steered him toward an FHA loan program. Luckily, the buyer qualified for a good FNMA program as well. So I stipulated in the contract that the buyer had to gain approval for the FHA program within 5 days or else drop the FHA program and proceed with the FNMA program. Both the broker and the agent needed education on this point, which I provided in writing, and four days later the broker notified me that the buyer would not be approved by FHA and that they were proceeding with the FNMA program.

The next obstacle we faced was the home inspection. The inspection resulted in asking for several hundred dollars worth of repairs that we agreed to do. The repairs took two weeks to complete. While repairs were ongoing we ordered a property appraisal. The appraisers in our area are backlogged eight weeks but we knew an appraiser who would perform an appraisal within a week for 150% of his normal fee. Of course we didn’t have the luxury of being able to wait eight weeks so we bought the expensive appraisal.

The next obstacle was to order a preliminary title search, which showed a clear title luckily. The previous owner did not have an as-built survey so we had to order an expensive set of survey documents from the county.

Now that the obstacles to closing were nearly erased and we were close to a hard closing date, we still had a problem with the previous seller. They had only moved a few things out of the house and the house was still well cluttered. They were getting around to moving out eventually but not fast enough to be out of the house before closing the sale. Their lack of cooperation and their inability to follow through with their verbal promises made it clear why they had neglected their home and let it go into foreclosure.

Since the utilities were turned off and the seller was no longer living in the home I had the legal right to declare their belongings as abandoned property and I notified them that I would move the items out for them. My partner and I spent a day boxing and bagging up the seller’s personal items, and grudgingly they picked the boxes and bags up the day before closing. Whew!

Second Deal

Now, on the other hand, events with the second property proceeded much more smoothly. We bought the home, found a buyer for it within eight days, and closed on the sale eight days later.

We decided to sell the second home on a land contract or wrap mortgage with the existing financing remaining in place. We also decided to stipulate that the home had to be refinanced within two years or it would be foreclosed back to us. We did this to protect the previous seller’s interest in the underlying financing. They didn’t want it hanging out there for a long period of time.

Our “owner finance” signage attracted several buyers quickly. We required a large enough down payment to “cure” the loan, that is, to pay off the existing arrearage and attorney fees. We found an eager buyer who had sufficient cash on hand and a good income, but without enough time in the area to have a high credit rating. He understood the concept of the wrap mortgage and the underlying financing and we negotiated a contract with him at Starbucks. He negotiated a lower sale price by offering a larger down payment. Basically we were able to immediately receive all of the “back end” profit that would have been paid to us in two year’s time when he refinanced. We received this up front in exchange for a lower sales price. It was a fair exchange for both parties.

He agreed to buy the home “as is” and to do some repairs himself. No home inspection was needed; no appraisal was needed; no repairs had to be made; no real estate agent needed to be paid; and no survey had to be ordered. The buyer paid all of the closing costs which were far less than he would have paid if he had used a real estate agent and a mortgage broker.We used a closing agent who is very familiar with transactions of this type, which she calls “unacknowledged wrap sales.” Our closing agent has become a friend and has spoken at our local Real Estate Investment Club.

In summary, each of the two deals netted about the same profit, but it is obvious which deal one would prefer to do if given a choice. If I were Robert Kiyosaki I might call one deal my rich dad’s deal and the other my poor dad’s deal. We learned enough to make deals of the first type go more smoothly in the future but I’ll take deals of the second type every day of the week.

I hope all of your real estate investing deals proceed smoothly and quickly.

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Garry Gamber is a public school teacher and entrepreneur. He writes articles about real estate, health and nutrition, and internet dating services. He is the owner of Anchorage-Homes.com and TheDatingAdvisor.com.

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Is your pet worth $100,000? It may be if you don’t make accommodations for it when selling your home.

A Hundred Thousand Dollar Pet?

A house I’d seen with a potential buyer in an attractive neighborhood built around two lakes sold for $100,000 less than was typical for the neighborhood. Do you know what caused it to sell for that much less? A pet. Actually, two pets.

I can hear you thinking, “How can that be? Surely she doesn’t know what she’s talking about this time. How could two pets reduce the sales price of a home by $100,000? Is that even possible?” I understand your skepticism, but it’s true. Let me tell you how I know. When I made the appointment for the potential buyer to look at the house, I wasn’t told about the presence of pets. We arrived at the house, knocked on the door, and when no one answered our knock, I got out my electronic key to open the box containing a key for brokers to use. While I was doing this, we began to hear some loud barking from large dog or dogs inside the house. The buyer said she did not want to go into the house with “dogs on the loose.” I have to admit I wasn’t thrilled with the idea either, so we went on to the next house she was considering.

She asked me if we could see that house the next day sans pets. I called and made arrangements.

The next day we looked at a two story, 5 bedroom, house with a fully finished, walkout basement that supposedly didn’t have pets. It was a nice house, but the whole house smelled strongly of pet odors. The furniture in the basement was shredded – truly not too strong a word to use. I’ve never seen furniture in worse shape. The front of the house was nicely landscaped. The back of the house was a disaster. The door frames and exterior doors were scratched and gnawed. The lawn had beaten paths and patches. There wasn’t a flower or a shrub to be seen. The “buyer” couldn’t get away fast enough.

I later found out the owner of the house had a German Shepherd. The second “dog” was a wolf and shepherd mix. The house stayed on the market longer than typical, the price was reduced several times and the final sales price was $100,000 below what was typical for the neighborhood. Now you tell me, what cost that seller $100,000?

Don’t misunderstand, I know pets are wonderful. Over time my husband and I have enjoyed living with a German Shepherd, two Siamese cats, assorted adopted stray cats, fancy guppies, gold fish, koi, and various sorts of wounded critters our two sons brought home.

Pets enrich your life. They don’t enrich the sales price of your home. Take the right steps though, and they won’t rob you of any of your equity.

Raynor James is with www.fsboamerica.org – providing homes for sale by owner, “FSBO”, properties. Are you thinking, “Should I sell my home?” Visit www.fsboamerica.org/seller.cfm to sell your home sale for free for one month.

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Real estate is changing hands in ways that make headlines. Whether you’re a buyer or seller, here are some tips to help you make the best deal.

BUYING:

So you want to buy a house? In this market? Are you nuts? Actually, it depends on where you are. You could be very shrewd right now if you pick the right spot, the right pricing trend and bid aggressively. It requires homework, homework, homework.

Example: My wife scoured a market, screening 90+ houses. We eventually found a fixer-upper for $162K. We offered $160K the same morning it was listed. They took it on a handshake. One year laterwith no improvements!we sold it for $208K. For those of you without a calculator, that’s a 30% return on the investment.

And you can do it, too. Here’s how:

1. Pick a growing area. This is essential. Yes, it’s hard to predict economic cycles and which metropolitan areas are going to prosper over the next year or so. However, if you read the business pages regularly, you’ll have a much better idea of where to buy/invest.

2. Learn the market. This is also essential. You’ve got to know what’s out there, what houses are going for and how to spot a bargain from the overpriced. When you find your bargain, you probably won’t have much time before the competition gets wind of it. So you must be ready to make a solid offer right away.

3. Make your offer contingent upon a thorough inspection. There’s nothing worse than buying something with plenty of infrastructure problems. They’ll cost you time, money and aspirin. If you discover only a few problems, try to get the seller to lower the price to counterbalance the flaws in the property. They often will.

4. Finally, recognize that you will not likely land your first prospect. Therefore, be patient and be prepared to keep looking until you find the right house that makes good economic sense for you to purchase.

Follow the above four tips and you’ll do better with your property investment.

SELLING:

What to get the best price for your home? Just follow these six tips:

1. Everything (usually) looks better in brighter light. So let the sun shine in. Open curtains and blinds and turn on lights in all the rooms.

2. Fix up those little things. Oil or WD-40 those squeaky door and window hinges. Tighten any loose door handles. Replace broken shutters, fix leaky faucets, etc.

3. Deodorize! Nothing turns off a potential buyer than a “funny” or unpleasant smell. You’ve heard of the bake bread or cookies in the oven trick…it’s a lot easier to just use plug in deodorizers.

4. One of the easiest things to do is clean the place. Clean in the corners, clean the cabinets, re-grout the kitchen and bathroom sinks, tubs, etc. Wash the baseboards, make the place shine, especially in the entrance way.

5. Get rid of the clutter! Buyers need to envision the home as they would live in it. Anything interfering with that vision works against you in selling your home to them. So divide all your possessions into three groups:

a) things you really need to live in the house,
b) things you don’t really need but want to take with you to your next home, and
c) things you don’t want to take with you and should really toss.

Now, put those things your want to take with you to your next home in a rental storage facility. Hold a garage sale and/or donate everything else to charity. That’ll leave your home looking elegantly simple…the best way to present it to potential buyers.

6. Paint, paint, paint. Virtually every home has some areas that could use a fresh coat of paint. It is one of the most important (i.e., best and inexpensive) investment you can make is maximizing your sale price. Make sure you patch cracks and peeling paint first, though.

Follow the above six tips and you’ll sell your home faster and for a better price that if you didn’t.

For more information: http://www.denver-real-estate-homes-for-sale.net

Marshall Colt holds a real estate sales license in Colorado, with experience in Denver’s (www.denver-real-estate-homes-for-sale.net“>www.denver-real-estate-homes-for-sale.net) prestigious Hilltop area since 1994.

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Britain has become a nation of homeowners… Unfortunately, forty percent of all UK homeowners are blindly staying with their standard variable rate mortgages – unaware that they are potentially losing out on some big time savings.

If you are currently paying the standard variable rate with your lender, or are coming to the end of a special rate, you could find that a lower rate of interest on offer from alternative lenders. By renegotiating the interest rate, you could have lower monthly payments.

So, for example:

If you have an existing interest only mortgage of £220,000 with a standard variable rate of 6.5%, you would be paying £1,191 per month.

If you switched to a remortgage package that offers a two year fixed rate of 4.49%, the monthly interest payments would only be £823.

That is a monthly reduction of £368, and over the two-year term thats worth an amazing £8,800 in savings!

Apart from saving you money, remortgaging your home can also present you with other options that may be more beneficial to your financial needs – it could allow you to pay off your existing mortgage early, to raise extra money or even to consolidate your outstanding debts.

To repay your mortgage early:
If we were totally honest with ourselves, nobody really wants a mortgage, and the quicker you can be rid of it the better! If you repay it early then you will have more time to finance the things that you really want – like that big family holiday, a shinny new car, a nice conservatory etc.

With some clever remortgaging and switching to a lower rate of interest whilst still maintaining the same monthly payment amount that you have been used to, you could potentially reduce the life of your mortgage by years.

However, be aware that your existing mortgage might incur early repayment charges, especially in the early years and even if there are no early repayment charges your mortgage lender may require an administration charge.

To raise extra money:

If you want to raise money for home improvements or other purchases then remortaging can often be a cheaper and more flexible alternative to taking out a personal loan. In many cases home improvements and modernisation can be far cheaper than moving house altogether and you will also benefit from the increase in value to your property.

To consolidate your outstanding debts:

Remortgaging can allow you to release some of the equity that is tied up in your own home allowing you to pay off any debts that you have, such as credit cards or car loans. The rate on remortgage packages can often be considerably less than those of a personal loan.

However, before taking this option, you should carefully consider the risks of moving unsecured debt into secured debt and also any increases to the length of the repayment term.

Charles Ferrars writes about remortgage packages for LPR Mortgage Services based in Rugby (UK) – offering clients a large range of mortgage arrangements, visit their website for impartial, professional mortgage advice.

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When you use your property as security for the payment of your debts, this process is called mortgage. The term mortgage refers to the legal device used in securing the property, but it is also commonly used to refer to the debt secured by the mortgage.They are mostly used while purchasing real estates where the individual can buy the property without making full value upfront. The mortgagor i.e. the borrower puts the property as security against the debt for the rest of the value of the property. This way, legally the title of the land goes to the lender and equity of redemption goes to the borrower. The lender receives a note evidencing the borrower’s debt and obligation to repay, plus a lien on the subject property.
Types of Mortgage Loans:

There are many different types of mortgage loans. However, the two most popular and basic types are

• Fixed rate mortgage (FRM)

• Adjustable rate mortgage (ARM)

FRMs are the traditional loans which have a fixed rate over the life of the loan, typically 30, 20, 15, or10 years. Perhaps the only increase you may see would be because of increase in the property taxes or insurance rates. But payments for principal and interest will be consistent throughout the life of the loan using an FRM. .In the UK this fixed term can be as short as five years, after which the loan reverts to a variable rate thus making the loan an ARM.

ARM usually starts at a lower interest rate however the rates and payments depend solely on market interest rates and thus keep fluctuating. Usually on the same terms if a borrower qualifies for the loan then the lender may transfer the mortgage to him .It is up to the borrower , if he wishes he can change an ARM to Fixed Rate Loan, at an interest rate anywhere from 0.5% to 2% lower than average 30 year fixed term.

There is another loan called the balloon loan where monthly payment due is calculated over a certain term, but the outstanding principal balance is due at some point short of that term. This can either be a Fixed or Adjustable in terms of the Interest Rate.

Mortgage Broker:

A mortgage broker can be very helpful when you plan to buy or refinance your property or when you feel the need of mortgage to consolidate your debts. He can spare you of all the troubles of running around from one place to another and help you save money and your precious time. A mortgage broker is solely an intermediate between you and the lender. They originate loans by providing loan processing and arranging for the provision of funds by lenders.

He can counsel you on the loans available from different lenders and also give you advice on any issues involved in qualifying for a loan, including credit problems. He would take your application, and help process the loan. Generally these brokers do not charge much and the rate of interest you get would be much lower than what you would have got if you had dealt directly with the lender. The mortgage broker works on the basis of contingency. Once the loan is closed, the mortgage broker is compensated.
So, next time you want to buy a property you know what or how to get your loan.

Jeffrey Meier of Jam727 Enterprises offers detailed information about mortgages and other important topics in the Information Directory at http://www.Jam727.com

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Have you seen any of those banners on the Internet, “No Closing Cost” home mortgages? Do you question whether or not they too good to be true? Believe it or not, sometimes they are true. I did one of these a few years back. Usually the deal is that you need to be refinancing your existing home mortgage, so your home mortgage company can roll the costs of the loan into your new home mortgage.

Typically you can qualify for this type of arrangement without closing costs when you are refinancing for less than your house is worth. Bottomline, the lender wants to make sure that there’s some equity in the property, in order to minimize their risk. When the home mortgage company completes this type of loan, they actually get to increase the amount of the loan by a little, which are the closing costs that you aren’t paying. So technically you have closing costs with this type of loan, money just isn’t coming out of your pocket at closing.

Alternatively, your home mortgage company may mean that they are waiving their fees for the closing. Although this would save you money, you still have to pay the appraiser, the closer, etc. So, my recommendation is it’s best to ask if you will have to bring money to the closing for anything.

If you are purchasing a home, a “No Closing Cost” home mortgage may mean something different. It may mean that your home mortgage company waives their fees, but you still have to pay the appraiser, the lawyer, the home mortgage broker. This may mean that you have to bring a few thousand dollars or more to the closing.

These days, it really is not enough to rely on the good faith estimate for your home mortgage. Once you get it, call an attorney who handles home closings. Have the attorney figure their estimate for closing costs. Unless you’re practiced at reading the good faith estimate, you may find that the difference between this estimate and what you actually pay at closing may be $3,000 or more. I have experienced this at closing mostly because of the timing of the home closing. If the closing is at or near the beginning of the month, the prepaids (interest, insurance and taxes) may be much more than if closing were completed at the end of the month.

There are some “No Closing Cost” home mortgages that have everything rolled into them. With these mortgages, the only money you will need is for owner’s title insurance. All lenders require you to buy an insurance policy called Title Insurance for them. That means that if someone sues you claiming that the property is really theirs, the insurance company will have to pay. This policy really just protects the lender. To protect yourself, you need owner’s title insurance. It is very cheap, and now often comes with some identity theft protection. I recommend that you ask about it. Most of the time it cost less than the carpet in one room to protect your investment.

Technically for either definition, the closing isn’t really free. Even if you aren’t paying the home mortgage company, there will always be some other people to be paid. Question is, do you want to pay now or later. In my experience, the closing costs are so little in comparison to a home mortgage that it can make sense to roll them into a home mortgage. So ask if this is possible.

Thanks to advances in technology and changes to banking laws, the cost to get a home mortgage is dropping. Eventually, rates will rise and No Closing Cost home mortgages will go the way of 0% financing for car loans. Take advantage of the great deals while they are around.

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If you own a home, you know mortgage products have moved beyond the basic 30 year fixed option. Reverse mortgages are one such product and here is an overview.

An Overview of Reverse Mortgages

A typical mortgage is created when a lender provides you with a lump sum amount of cash to purchase real estate. In consideration of this, you agree to repay the mortgage on a monthly basis for a defined time period at a particular interest rate. The length of the repayment period and interest rate, whether fixed or adjustable, set the monthly payment amount.

A reverse mortgage works in a similar way, but backwards. It is a fact that the baby boomer generation is moving into their retirement years. A high percentage own homes with significant amounts of equity in them. The problem, of course, is equity is a fixed asset, to wit, you can’t see it in your bank account. Traditionally, the best way to turn this hard asset into cash was to sell the property and move down to something cheaper. You then pocketed the difference in the form of cash.

Many people, however, are attached to their homes. A good portion of your life, including raising a family, may have occurred in your home and it is emotionally difficult to sell it. On top of that, tax issues may take a bite out of the cash you receive. Throw in the pure misery of attempting to move all of your valuables that have been accumulating for 15 or 30 years and selling your home starts to look like a dubious option at best.

Lenders being the ultimate capitalist, they have come up with a solution for this problem. The reverse mortgage. A reverse mortgage allows you to convert much of your equity into tax-free cash without having to take on a monthly payment obligation. You don’t have to sell the home, go through the moving process or make any monthly payments to a lender.

A reversed mortgage gets its name from the payment process. Unlike a traditional home loan, a reverse mortgage requires a lender to make payments to YOU! You can choose to receive the money as a monthly payment for the rest of your life, a lump sum payment or even as a credit line. Lump sums are not recommended since home equity is typically your biggest asset, one you should be very careful with.

The amount of a reverse mortgage is dependent on a number of factors. Your age, interest rates, the appraised value of the home, the equity in it and so on all are involved in determining your options.

For many people, reverse mortgage options are of great interest. The tax free aspect of the payments is certainly a benefit.

Richard A. Chapo is with BusinessTaxRecovery.com – providing information on taxes.

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Allen Wolford of Colorado came to the conclusion that the only way to qualify for a home mortgage was to die.

The embalmer wanted to purchase a home with his wife, but with $50,000 in debt, he did not qualify. So he made a decision.

His faked death certificate said that he died from cardiac arrest. Wolford is now facing 3 years in prison on forgery, and he still didn’t get the mortgage.

The official arrest affidavit shows that Wolford told police that he faked his death in order to rid himself of nearly $50,000 in debts. In fact, almost $42,000 was from child support he had failed to pay.

He is being held without bail in the El Paso County jail on suspicion of forgery and a fugitive warrant from California for parole violation and larceny.

Wolford, who worked for the Evergreen Funeral Home in Colorado Springs, confessed to creating a false death certificate.

“I didn’t think I’d get caught. I guess it was pretty stupid,” Wolford told police officer Connie Guthrie. He said that he attempted the plan because the lingering debts had disqualified his family from a mortgage loan.

The West Virginia State Child Support Division received an e-mail copy of the phony death with a note saying his wife was not responsible for her deceased husband’s back child support.

Wolford told police that his wife didn’t know anything about the scheme.

Wolford also sent a copy of the death certificate to the Colorado attorney general’s office, since he owed $7,000 in student loans to the state of Colorado.

The agencies that received the death certificate tried to verify it wiht the El Paso County vital statistics office. The office had no record of the certificate on file. They contacted the funeral home listed, who then went to the police.

Wolford will probably not be approved for a mortgage for several years to come, if ever.

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today

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