How To Sell Your House In Just 7 Days
An MLS is a forum for sharing properties listed for sale among affiliated real estate brokers. Realtors and agents often form local and regional boards, which are normally responsible for maintaining an MLS that allows all affiliates to access information about current and recent listed properties. An MLS listing provides greater exposure for sellers and the broker's listing. For more information, see the Selling Your Real Estate article in the Real Estate In-Depth section.
You will have paid the bank over 2,100. You will, however, still owe 50,000. Again, this is because your monthly payment is an interest-only payment. This is where some people get into trouble with home equity lines of credit. If you use all the equity in your home, and then decide to sell your house within the first year of taking your HELOC, you won't make anything on the sale, because you'll owe all you make to the bank. So, if you intend to use all of the equity in your home, creating a 100 loan to value with your two mortgages, be sure to stay in your house for at least five more years, so the value will appreciate, reducing your LTV and putting you back in a good position to refinance or sell.
Because reverse mortgages are based on the equity you've acquired in your home, the more equity you have the higher the loan you can get. It's an abstract concept, but the money you're borrowing is actually already yours It's a portion of the money you would get if you were to sell your house.
If you have a 75,000 loan and you sell your house for 389,000, you end up with 314,000 left over Who gets it Why, you do of course. It's your house, your money, your cash bonanza. If the loan has become due upon your death, your family (or whoever you've named in your will) is entitled to the left over equity.
You need to understand the position of the lender. While some actions you can take on your own, such as selling your house, other actions have to be negotiated with the lender. You do better in any negotiation if you know where the other party is coming from. While foreclosure makes the lender whole, it is a disaster for you. Your equity is depleted, you incur the costs of moving, and your credit is ruined. Hence, you must avoid foreclosure, if necessary by selling your house.
I told them to go ahead, but I was nervous, knowing what I know about large banks, ones that are not wholesale lenders, who work with mortgage professionals. After many trips to the bank (remember, bank loan officers don't come to you) that included plenty of hassles over paperwork, they agreed on a loan for their new home. The next step was to sell their house, so they could use the proceeds for a down payment and moving expenses. My parents had over 60,000 in equity and wanted to put a good chunk down on their new house and use the rest for expenses.
1 The national home value average What does it have to do with you Fannie Mae uses an adjusted property value (your actual home value as compared to the national average home value) as a starting basis for your total loan amount. If your home's actual value is at or above the national average, you can expect to get more from your reverse mortgage than if your home value was significantly lower.
Fannie Mae calculates an adjusted property value to figure out how much of your home value it can actually let you borrow. Your adjusted property value doesn't necessarily (if ever) equal the actual value of your home, nor does it equal the amount you can ultimately borrow. Adjusted property value is just a basis to determine your loan amount. Fannie Mae compares your home value to the national averages and determines your principal amount (the actual dollars borrowed) partially based on that comparison (along with age and interest rates). Any home with a total worth above the maximum value will probably be assigned a 359,650 adjusted property value. As a home value creeps further away from this number (lower than the national average), the amount that home owner could borrow goes down as well. Fannie Mae bases its lending limit on the national average home price. Combine all the home values in America and divide it by the number of homes, and you've got the magic number 359,650. This...
1 Your home value More equity equals more money available to borrow. 1 Your area Higher home values in the area means higher loan values for you if you choose an HECM or Home Keeper (which both use county medians to determine your loan principal). Cash Account has no set limit. It bases its principal solely on your age, home value, and interest rates.
The NRMLA site has a great reverse mortgage calculator, too. On the NRMLA home page, click on the calculator and get an estimate of what you can borrow based on your age, home value, neighborhood, outstanding debts, and what (if any) credit line you want. Just click on Calculate to see a breakdown of what you could get with three different loan options (two HECM and Home Keeper). What's really neat is that the calculator remembers you on your computer, so the next time you visit the site, you won't have to reenter all of your information. But that's not all. When you click on Loan Summary you can see exactly how it figured out your estimated loan amount. This is an incredibly useful tool to help you decide which loan you may want to pursue, and something you may want to print out and take with you when you see your counselor.
You also have several options available to you that don't involve reverse mortgages at all. If you absolutely must have more money than either of those plans can offer, you may want to consider selling your home and moving to a lower-cost area. You can also refinance or take out a Home Equity Line of Credit. For more on additional options, skip ahead to Chapter 8. You may find an alternative that makes you happier than an armadillo in a patch of Texas Bluebonnets. It's not uncommon to see a Jumbo Cash Account on a multimillion dollar home, but if you're still not convinced that your palace will qualify, give Financial Freedom a call at 1-888-REVERSE (888-738-3773) and ask them to tell you what the home value was on their largest ever loan to date. As long as you have them on the phone, ask them about their products and request an informational packet. They can also put you in touch with an originator in your area, or send you a list of Financial Freedom specialists.
Another factor in determining your loan amount (aside from your age and home value) are current interest rates. As interest rates go up and down, the amount you can borrow will change, just as it would in a forward mortgage. When you sign off on your mortgage (Chapter 11) the interest rate at that moment will be figured into the equation that determines your loan amount. The lower the interest rate, the more you'll be able to borrow.
For a calculator that will give you a ballpark estimate of how much you can borrow, visit the National Reverse Mortgage Lenders Association's Web site at www. reversemortgage.org and click on Reverse Mortgage Calculator. Simply enter your age, home value, and any outstanding debts you have, and they'll tell you how much you can expect. At the bottom of the estimates page, click Loan Summary to find out how they came up with your loan amount. This is a great way to get familiar with typical loan amounts and the math that's involved. When your originator figures your total loan amount, he or she will be looking at a screen that's similar to the one you'll see here. You may want to print this page to take with you when you see your counselor, who can give you an idea of how close this computer-generated loan is to reality.
1 One spouse can give up his or her reverse mortgage by paying it off (if one of you is selling your home to move in with the other this makes perfect sense). The only hazard here is that the other's reverse mortgage becomes due when he or she dies, regardless of who's still occupying the house. 1 You can each pay off your loan (an especially good idea if you're buying a new home together and both selling your homes, making it possible to put a lot of money down on the new home) and enter into a new reverse mortgage together.
Although it might appear that the APR would apply accurately to fixed-rate mortgages, that is true only in the unlikely event you pay off the loan balance precisely according to its schedule over the full life of the loan. If you pay ahead of (or behind) schedule, your actual APR will increase. Similarly, if you sell your house or refinance your mortgage, your actual APR will exceed the APR figure the government requires lenders to
Lending limits, loan value, and home value can be misleading terms. When your home is appraised, the value is not necessarily equal to the amount of money you can borrow. In fact, you'd have to be very, very old to get a loan for 100 percent of your home's value we're talking born around the turn of the century. Lenders factor in your age, current interest rates (they change constantly, more on that shortly), and earned equity to come up with a percentage of the home value that they can lend. The younger you are (early 60's to early 70's), the less they are going to approve because they know that you will probably stay in the home longer than someone in their 80's or 90's. So, while your home may be worth 250,000, they may only lend you 125,000. Depending on home values in your area and the last time you had your home appraised, you may be pleasantly surprised to find out what your home is worth in today's market. Keep in mind that appraisals are largely subjective, and although they...
I 2,000- 6,674 for origination fees Home Keeper origination fees can't exceed 2,000 or 2 percent of the adjusted property value, whichever is greater. Generally speaking, if your adjusted property value is 100,000 or less, you will only pay up to 2,000, but if your home value is near the maximum, you will pay 7,193 (which is 2 percent of 359,650). But remember these are maximums. Originators have the option to charge a lesser fee if they wish, so it can pay to shop around for lower fees. Think about it If your home's adjusted value is at or near the maximum, you're going to be paying the maximum fees any fee reduction may be worth it.
How to Make Your Home Sell
In order to revive the nearly unprofitable real estate market it is important that more and more homes are staged. This is a simple concept that ensures that a particular house that is for sales find appeal with more and more buyers. Apart from getting a large number of buyers so that the seller can strike a good bargain, it is also equally important for the seller that his house gets sold of quickly. It is important to increase the demand so that the market can get more lucrative.