Reverse mortgage loans provide homeowners with not only home security, but financial security as well. With no monthly payments and the added incentive of much needed cash for future investments, this mortgage plan is becoming a popular tool for home owners. However, before considering this financial option, the homeowner should know all the positives ...as well as some disadvantages. Reverse Mortgage Advantages The most well noted benefit of a reverse mortgage loan is the lack of a monthly payment obligation. An individual does not have to pay back this mortgage loan as long as he or she remains living at the current residence. Reverse mortgages provide the homeowner with money which can be used for other investments. These mortgage loans allow the homeowner to turn his or her home into cash and receive endless funds to increase income. Another advantage gives the homeowner the liberty to decide on the type of mortgage reimbursement plan. An individual may choose to receive the money
A 30 Year Mortgage is by far the most popular term (length) of mortgage within the United States and most of the world, and for several reasons. Not only are they historically the "go-to" option for most lenders, but 30 years seems to offer the "sweet spot" that offers maximum benefit to home buyer and financier alike. How does a 30 Year Mortgage Work? Basically, a 30 year mortgage means that after 30 years, you won't have any more payments and your house will legally be yours, i.e.: The bank or lending institution hands you the note. You can of course, pay off your mortgage faster . That's the short version. Here's a longer one: When you take out any loan, regardless of what it is for, you'll be looking at three basic variable: Loan Amount: The total amount that the lender will pay the lendee up front. In the case of a mortgage, this is usually the price of the home minus any down payments. Loan Term: How long the lendee has to pay off the lender.