Whether you’re a first-time buyer, or an American looking to refinance their current loan, there are a range of different mortgages available. You will need to identify what you’re looking for, know your credit score, and budget yourself before getting started. [Read more…]
Amid pandemic, unemployment, high cost of medicines, and lockdown, we are all faced with economic backlash. If you are a renter, or are moving for a new rental, you might find yourself in a tumultuous financial situation. However, a prudent financial strategy can save you from falling into miserable circumstances with your finances. [Read more…]
Gold is among the most valuable commodities in the world. It has developed into a universally recognized symbol of riches and prestige. It’s also one of the earliest investment methods that remains relevant to this day.
On the surface, a reverse mortgage seems like a great idea. As you enter retirement, you can use the equity in your home and receive guaranteed tax-free income in exchange for a share of that equity. However, like anything else, there are always downsides, so make sure you have done your research and thoroughly understand the risks of a reverse mortgage.
What Is a Reverse Mortgage?
A reverse mortgage is precisely what the name implies, a mortgage done in reverse. Instead of you making payments on a mortgage, your reverse mortgage provider makes payments to you. You can get your funds in a lump sum, as a line of credit, or in installments, and nothing is owed so long as you live in the home. The reverse mortgage will only become due if you move out, sell the home, or pass away.
Hidden Costs and Fees
Just like a regular mortgage, there are closing costs associated with a reverse mortgage. However, they’re typically much higher than a standard mortgage. Every lender will have slightly different ways to provide a reverse mortgage, and the fees, interest, and other costs will be delineated in the contract terms. Make sure you completely understand all the costs both upfront and over the term of the loan. It can be helpful to have an independent financial counselor review the reverse mortgage paper to ensure you understand all outlined terms outlined prior to signing.
Probably the greatest risk of a reverse mortgage is the uncertainty the future inherently brings. Typically, there are several circumstances in which the reverse mortgage comes due in full immediately. For example, If you end up in an assisted living facility or nursing home, you would be forced to sell the home and pay back the loan.
You are also required to keep up on the taxes and keep current with homeowners insurance as well as sufficiently maintain the property. If you become disabled or the rest of your income stream evaporates and you are unable to fulfill these requirements, the lender can immediately call the loan due in full.
Getting Out of a Reverse Mortgage
Perhaps you already have a reverse mortgage and have now decided it would not be in your best interest. The good news is that you can learn how to get out of a reverse mortgage. If you are within three days of signing the paperwork, you can rescind the agreement with no financial consequence. Beyond that, you could also sell your home, take out a home equity loan or home equity line of credit, or use your savings to pay it off. If none of these sound like viable options, Point offers a Home Equity Investment that provides more flexibility than a reverse mortgage as well as having no payments during the 30-year term. Talk to your financial advisor to see what option works best for you.
Gaming has been popular since the release of the first-ever video game, Pong. The aim of Pong was to defeat an opponent, which could either be a person or a computer. This began the era of competitive gaming. Since then, there have been many iterations of competitiveness. Even the single-player games that were later developed encouraged competitiveness. People would play against themselves or previous players to beat the high score. [Read more…]
If you are looking to borrow some money, but do not want to face the long-term commitment of a loan or mortgage, then bridging finance may be a good option for you. Bridging finance, or a bridging loan, is a short-term financing option that is great if you need to borrow money quickly. Essentially it is a short-term loan that is designed to ‘bridge’ a period between two situations, typically the time between the purchase of a new property and the sale of another. Bridging loans are short term finance facilities, that can typically range anywhere between 1 month and 1 year depending on the situation and the lender. If you are looking to borrow a sum of money for your new property but are still waiting for your old property to sell, then here are the 7 benefits of bridging finance. [Read more…]
Starting a business today is very different from how it was 10 years ago. It’s a new era, and we have to be smart with our money and demands on it. No matter what kind of business you’re starting, there are a few things you absolutely must learn to do. [Read more…]
Annuities are a complex financial product. You may have heard of the downsides such as the fact that you can’t access the money beyond receiving the scheduled payments. The returns won’t be as great as if you had invested the money in the market. There can be tax implications of investing in an annuity that most people don’t take the time to understand before they sign the contract. But there are many benefits to using annuities. We are here to help you understand the benefits of annuities for your future. [Read more…]
A career in finance is one of the most lucrative careers available in the job market. If you’ve always been interested in management and investments, pursuing a financial career might be suitable for you. Finance involves matters such as banking, capital markets, credit, money, and investments. Moreover, it covers the creation, oversight, and study of money, liabilities, assets, credit, and investments that form financial systems. [Read more…]
Let’s face it, none of us have had a lot of spare time during the pandemic. We have all done our best to weather the various storms, both personal and professional, and we have tried our best to keep our heads above water. Now, it looks like things are starting to get back to normal. Many of us are beginning the process of getting our lives back on track. That means taking a good long look at how we fared during the pandemic, seeing what needs attending to, and planning ahead for the future. [Read more…]