Mortgages, Reverse Mortgages and Home Equity Loans
There are pros and cons to having a mortgage, using a reverse mortgage, or taking out a home equity loan. These financial tools can be used the right way or the wrong way. Read more to determine if you can use this type of debt to work for you, or if you should work toward paying it off.
Good Credit Score Not Good Enough Anymore
Good credit scores used to guarantee the lowest mortgage rate possible. That was then, this is now.
Should I Pay Off Mortgage Early
A study conducted by the Center for Retirement Research at Boston College concluded that “retired households are, in theory, better off repaying their mortgage.” Does that mean you should go cash in your investments to pay off your mortgage now? It depends, of course, on your individual situation. You need to factor in risk and taxes before making a decision to pay off your mortgage early.
Should I Invest Or Pay Off The Mortgage
To determine if you should invest or pay off your mortgage, you need to compare the after-tax return on your investments with the after-tax cost of your mortgage, as in the example below.
Paying Off Mortgage Early - A Guaranteed Return
If you have the financial assets to pay off your mortgage early, but choose not to do so, in effect you are choosing to invest with borrowed money. This would make sense if, after considering risk and taxes, the rate of return you can earn on invested assets exceeds the interest cost of your mortgage. This is not usually the case.
The Mortgage Crisis: Has it Affected Your Ability to Refinance A Home?
Learn how tighter lending standards will affect your ability to refinance a home.
Before You Consider a Reverse Mortgage
Reverse mortgage tips: two things to like, one thing to hate, and five things you need to know about reverse mortgages.
Should I Consider an Adjustable Rate Mortgage?
Learn the ins and outs of adjustable rate mortgages; then you can decide if it fits your financing needs.
Learn About Seller Carry Back Mortgages
If you are selling a home that you own free and clear, you may consider carrying the mortgage for the new buyer. Learn how carry back mortgages work and what your risks are.
Reverse Mortgage Guarantees Income For Life
Guaranteed income is just that; income guaranteed for life with no risk on your part. A reverse mortgage can provide that level of security. So why don’t more people use them? Two reasons.