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Reverse Mortgage and the Benefits

You have paid money towards your home for years; now let your home pay money to you. Reverse mortgages have helped hundreds of thousands of homeowners improve their quality of life in retirement.  Instead of making payments to the lender, the lender makes payments to the borrower.  Payments can be made as follows:

• A lump sum
• Monthly, for as long as the borrower occupies the home
• Periodic advances through a line of credit
• Combination of any of the above

Anybody over the age of 62 who owns a home can qualify for a reverse mortgage, if there is adequate equity in the home.
The amount of loan available depends on the type of loan program selected, how much equity remains after paying off existing mortgages and the borrower's age.  An example is a person who is 65 years old and has free and clear home worth $500,000, monthly payment to the client available for this loan is $949. At age 75, however, that monthly payment jumps to $1,401.
If you have questions for yourself or for your loved ones contact our Team of  Reverse Mortgage Professionals and we will explain the process and benefits.

How Does the Market Affect Mortgage Rates?

When buying a new house, everyone would like to avail the best mortgage rates, which vary with market conditions. So you have to be aware of the market conditions to get the best deal.  Mortgage rates, tied to Wall Street activities and the national economy, vary from day to day. If the Federal Reserve decides to increase the key interest rate, which depends on the health of the national economy, lenders respond by raising their yields to investors. This leads to increased mortgage rates.

Similarly, mortgage rates fall if the condition of the economy is not good, in which case the Federal Reserve takes suitable action to revitalize the economy. This manipulation of the mortgage rates takes place all the time, and it is important to keep track of mortgage rates indexes, alerts and online financial news feeds, which are excellent indicators. Lenders have to follow the market trends and consider the secondary market and the sales of existing mortgages by agencies such as Fannie Mae and Freddie Mac. They cannot set their own rates, which are basically determined by financial investors.

Therefore, to avail the best mortgage rates, keep monitoring the financial indicators and news and examine all economic parameters relating to mortgage rates. As such it is important to keep track of the financial news in local and national newspapers.

The mortgage lending institutions have to compete with the other markets for the investor's money. If bank deposits are not enough to meet mortgage fund requirements, they have to borrow from the money market, which will not be to their advantage.

How can you, then, get the best mortgage rate? One by staying in touch with fluctuating financial information and doing enough research and preparation. You must keep track of the ever-changing mortgage rates before deciding on the right time to go in for a mortgage. Interest rates, today, are at their lowest ebb and, as such, mortgage rates, which hovered around 10%-12% a decade ago, are now around 4.5%-5% on a 30-year fixed rate.

That means that the best way to secure the lowest mortgage rate possible is to keep an eye on the news, to monitor financial indicators and news closely and to examine all economic cues relating to mortgage rates. Remember, glancing over the financial pages of your local or national newspaper can go a long way in the long run. Therefore, mortgage lending institutions are competing with other markets for the investor's money. If a bank doesn't attract enough depositors to fund all the mortgages, they have to go where their depositors go--the money market--to make up the difference. There, they pay the going mortgage rate!

Combining research and preparation, as well as staying plugged into all the latest up-to-date financial information can go a long way in ensuring that you get the mortgage of your dreams. All this information is well and good you say: but what's the mortgage rate today. You've asked the time and you're told how to make a watch. Unfortunately mortgage rates are not a constant. They are ever changing, depending on hundreds of factors in the continuing evolution of our economy. The market conditions detailed today will be old news tomorrow. The only certainty is that interest rates are nearing historic lows and compare to the 10%-12% mortgage rates of a decade ago, 4.5%-5% 30 year fixed rate is a bargain.

No one is asking you to be an economist, but there are certain market conditions you should look out for when it comes to shifting mortgage rates. Being aware of the varying conditions can go a long way in ensuring that you get the best mortgage rate and best deal on your new home.

Mortgage Protection

Chances are, your new mortgage is your largest financial obligation, and though it probably hasn’t crossed your mind, it is possible to help your family stay in your home even if something unexpected were to happen to you.
It can be less expensive than you might think to ensure your family has the funds necessary to stay in your home – close to friends and schools in the event of an unexpected death. It’s coverage you hope you’ll never need, but it can provide peace of mind for your family.
Term life is one of the least expensive ways to buy life insurance. When you purchase 10-year, 15-year, 20-year or 30-year term life policy through a reputable and financially stable insurance company such as a mutual life insurance company, your premiums are guaranteed not to increase for the full term of the policy. Remember, all guarantees and protections are subject to the claims-paying ability of the issuing insurance company.
You would be amazed to discover how affordable it can be to protect your family from the unexpected. Don’t put it off. Contact a trusted life insurance agent today.

DAV Golf Tournament

MBA Mortgage Corporation would like to announce their involvement in another Disabled American Veterans Golf Tournament.  An active contributor, MBA was able to raise another $1,000+ for the D.A.V and its members.  In particular, MBA would like to thank the contributions from the following golfers. 

MBA Clients:
Grady Gerade
Craig Daniels
John Zakrzewski
Chuck Julian

MBA Partners:
Dave kantelis from officeland
Ed reddington from Metro West insurance
Rod Oreste from Oreste Law

The D.A.V. Department of Massachusetts (DAV Dept. of MA) has 41,000 members. They are an organization of disabled veterans focused on building better lives for other disabled veterans and their families in Massachusetts.  The goal of the DAV Dept. of MA is to assist their members in obtaining benefits and services earned through their military service. The funds are derived through the generosity of their membership and donations.