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Exactly What Are Reverse Annuity Mortgages?

Mortgages come in many varieties and can be quite confusing. Reverse annuity mortgages have a confusing name but can be very helpful for seniors. A reverse annuity mortgage is one form of reverse mortgages in general. Reverse mortgages were created for seniors and you must be at least 62 years of age at time of application.

A reverse mortgage is a variation of a home equity loan. Normal home equity loans require payments made monthly towards the balance of the loan taken out. If the payments are not made, then the home is subject to foreclosure. For this reason, it can be very dangerous for seniors to take out normal home equity loans. Fixed incomes might not keep up with increasing home equity interest rates.

With a reverse mortgage there are no payments due on the loan balance until one of three things happen. The first is if the house is sold. If sold, the reverse mortgage balance must be paid off first with the home sale proceeds. The second event would be if the borrower no longer occupied the home. An example would be going into a retirement home. The final instance is the death of the borrower.

There are two different ways that money can be received from a reverse mortgage. The first is a lump sum. This means the entire amount of the loan is given to the borrower at closing. The other type is a reverse mortgage with an annuity. This means that instead of a lump sum the borrower receives a stream of payments every month until one of the above 3 events happen.

The amount that can be borrowed is related to various criteria. More money can be taken out the older the borrower is. Also, the more the appraisal is for the property translates to more able to be borrowed using a reverse mortgage. There are other variables that relate to the locality in which you live. Resources are available which can help you figure out the amount you can secure with a reverse mortgage.

One excellent source of information is actually mandatory. It is required that all borrowers with reverse mortgages attend a free education class approved by HUD. This is ensure seniors to not get taken advantage of by bad lenders. These classes are an excellent source of information and are a good benefit to seniors. An educated borrower can often save money.

The decision on whether to take a lump sum or an annuity relates to several factors. Your age and your income needs are primary criteria. Oftentimes, the advice of a certified financial professional becomes very useful when making this decision. Each person’s situation is unique and there is no one size fits all answer. Your situation must be analyzed individually.

Reverse annuity mortgages can provide seniors with a monthly check without fear of losing their home. They often are a better choice than a typical home equity loan. As with any major financial endeavor, information is essential. Make sure you understand all the terms before signing on the bottom line.

If you would like more on reverse annuity mortgages, check out http://www.MortgageLoans-101.com where you’ll find this and much more, from FHA mortgage loans to interest only home loans.

Exactly What Are Reverse Annuity Mortgages? / Author: ahefner33

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How Does a Reverse Mortgage Work For Seniors?

Many seniors wonder how does a reverse mortgage work. As its name implies, a reverse mortgage is opposite of a typical one. In a regular mortgage, the borrower secures a loan and makes monthly payments toward it. In a reverse mortgage the lender gives either a lump sum or a stream of monthly payments to someone who already owns a home.

Reverse mortgages have several requirements and stipulations. The first and most important being that one must be at least 62 years of age to qualify. These loans are specifically meant for seniors. The goal of a reverse mortgage is to allow a senior to cash out equity in their home without subjecting them to a risk of future foreclosure or having a loan payment to make.

Most home equity loans require monthly payments. When you take out a second mortgage, that loan requires payment. However, a reverse mortgage requires no payment so long as the borrower continues to occupy the home. Payment of the reverse mortgage is only triggered by one of three occurrences. This first of these is if the borrower dies.

The second is if the home sells. The third trigger for repayment is if the borrower no longer occupies the home for other reasons. One common reason is transition to long term care. Other than these reasons there is no payment required towards the balance of the reverse mortgage. This means that there is no possibility of default hence foreclosure.

Reverse mortgages require that any existing first or second mortgages against the property be repaid. This often occurs at closing with the first portion of the reverse mortgage being used for this purpose. The remaining amount available is then disbursed to the borrower. This can be done in one of two ways. The borrower on a reverse mortgage can elect to take this amount in a lump sum.

Alternatively, the borrower can elect to take the proceeds in monthly payments. These payments arrive every month and are very much like an annuity. The amount available with a reverse mortgage is driven by several factors. The first factor is the age of the borrower. The older the borrower means the more that can be accessed via a reverse mortgage.

Another important factor in determining the amount available is the appraised value of the home. The higher the value then obviously the more that can be borrowed against it. If you elect monthly payments, then the total amount received is higher than that in a lump sum payment. Other local factors influence the amount which can be borrowed and vary by county.

There are many good free resources online to explain how does a reverse mortgage work. These loans can be excellent for seniors. However, it is important they avoid unscrupulous lenders. HUD requires a free educational session for seniors prior to signing for one of these loans. This education is important and should be heeded.

Most haven’t even heard of them and often lead to thinking “how does a reverse mortgage work“? To find out more, check out http://www.MortgageLoans-101.com where you’ll find this and other mortgage loan information you might never heard of.

How Does a Reverse Mortgage Work For Seniors? / Author: ahefner33

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Home Mortgage Interest Rates - How Low Can They Go?

Many reading this are old enough to remember home mortgage interest rates when they were above 15%. Compared to those days, today’s rates are at historic lows. It is possible that sometime in the future many will look back wishing they took advantage while they can.

One must be careful when scrutinizing the offered interest rate on any given mortgage. Some lenders can use tricks to make borrowers think that the rate is lower than it actually is. The devil is often in the details.

Some mortgages are what are called adjustable rate mortgages, or ARM’s for short. These loans come with an initial interest rate which then adjusts along with the prevailing market rates. The adjustment formula usually dictates the rate goes one way which is up.

These ARM’s can have low initial interest rates. Some borrowers assume that this rate will stay the same for the life of the loan. This is not the case. They are confusing ARM loans with what are called fixed rate loans.

A fixed interest rate loan never changes. You know exactly what your mortgage payment will be as long as you own the home. This allows for effective family budgeting pertaining to your housing expenses.

At the other end of the spectrum are ARM’s with extremely low introductory interest rates. These mortgages are called “teaser rate” loans. Teaser rate loans are especially dangerous and can result in a foreclosure.

When mortgage payments skyrocket it catches many families surprised an unable to afford their housing expense. It is essential that you read the fine print on any adjustable rate mortgage to make sure that interest rate is really as low as you think it is.

It is a great time to take advantage of low home mortgage interest rates. The lower the interest rate equates to a lower payment for you. Just ensure you do your research and don’t get tricked into getting a mortgage with a high interest rate disguised as a low one.

Compared to many years ago, home mortgage interest rates are at all time lows. To get more, check out http://www.MortgageLoans-101.com where you’ll find this and everything else you need for making the right decision with your mortgage.

Home Mortgage Interest Rates - How Low Can They Go? / Author: ahefner33

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The Costa del Sol, Spain

Stretching from Almeria to Tarifa , The Costa del Sol is a densely populated coast of Andalucia. It stretches for just over 150 kilometers and is one of Spain’s most popular tourist destinations. All year round, people flock to its fine sandy beaches and calm Mediterranean waters.

The area’s mild climate is a major factor in enjoying the beaches and a wide variety of outdoor and water activities all year round.

Costa del Sol’s most popular destinations include Benalmadena, Fuengirola, Mijas, Torremolinos, and Marbella with their miles of beautiful fine sand beaches and splendid weather, have kept tourists coming back year after year, by the thousands.

The Costa del Sol caters for both young and old, locals and tourists alike, offering an exciting selection of entertainment and relaxation options.

The Costa del Sol is the most developed part of the coast. Many towns have been developed and recently modernized their boardwalks, or ‘ paseo maritimos. This picturesque town is in no shortage of tourist amenities, resorts and high-rise hotels. The nightlife is lively and colorful, with a string of bars and restaurants to delight in. Other attractions include zoos and water parks, casinos, bullfights and amusement parks (like the renowned Parque de Atracciones Tivoli).

The coast is often nicknamed “The Costa del Golf,” for it boasts one of the highest representation of first class golf courses. To entertain families and children, there are theme parks, including water parks, safari parks, go karting, and many beautifully landscaped public gardens. The younger generation are typically crowding in the areas of attraction like the Puerto Marina and the popular ‘24 hour square’ of Benalmadena, as well as in Marbella’s Puerto Banus. These places are very trendy and hip, and of course, knowing the youth’s preference for late night fun, these bars and clubs don’t get up and alive until near midnight, and stay open until the wee hours of the morning.

The Costa del Sol’s history dates back to the Phoenicians. From that time, the coast has been inhabited by Greeks, Romans and Moors, all of whom have influenced the coast and left their mark, evident in Costa del Sol’s culture and architecture. Although often in the shadow of its neighbour Seville, the Costa del Sol and the Malaga province are home to some of the most excellent Flamenco and bull fight shows, and a number of the best tapas restaurants.

Remarkable historical monuments in themselves, the whitewashed towns of Costa del Sol and their people still live according to age-old traditions, inherited from their Roman, Iberian and Moorish forefathers. Many of the towns and villages near the coast have developed posh resorts but nevertheless preserved their archaic charm and magnetism. Communities hidden in the highlands remain rugged, with its serene charisma and olive trees, especially appealing for the more adventurous traveller.

Most towns began as fortifications and over the centuries, many have developed into thriving agricultural producers of olive oil, goat milk, fruit and vegetables.

Eastern Costa del Sol is the 54 kilometre stretch of coast east of Malaga city (the capital of Malaga province ). Though highly developed from a real estate viewpoint, it is not anything like the property development on the western Costa del Sol .

From Malaga eastwards are high cliffs of up to 200 meters. This is where the Sierra Almijara joins the sea. This area ends on a coastal plain called Mara , with urban landscapes and traditional agriculture surrounding it.

Nerja is the principal urban center on the Eastern coast. Growing rapidly, much of eastern Costa del Sol’s accommodation for tourists is found in the town of Nerja .

The beaches of eastern Costa del Sol are Calahonda and Calas Ocidentales in Nerja . Playa Calahonda is very popular among tourists owing to its picture postcard setting. Before you head down to the beach, the view from Balcon de Europa is something to witness. Stick to the well-maintained but winding footpath to explore the coves to the east.

In addition is El Maro, at the eastern end of the Costa del Sol ( Malaga Province ). Expansive, isolated coves are innumerable, and some accessible by car, others only by trail. It s a perfect getaway if you re in search of peace and relaxation. Costa del Sol’s infrastructure is well planned, especially with the new Autopista del Sol granting access from Malaga to Estepona and beyond to Gibraltar. For those who want to explore further inland, there are links between the towns of Seville, Granada and Cordoba, all easily accessible. There’s also the old N340 coast road; although it’s a little slower, this trusty road offers some exquisite sea views as it snakes its way along the coast. The International Airport has regular flights to most key cities and is located just 10 minutes from Malaga City centre, and within half an hour by car from most other popular resorts on the coast.

Western Costa del Sol is the 100 kilometre coastline that begins at Malaga city and stretches westward up to the border of C province . This part of the coast is highly urbanised both in property and infrastructure, attracting a large number of Spain’s international tourism. Communications center around Malaga International Airport (8 kilometres west of the city) and the N 340 central coast highway. In the middle of the Costa, the much improved district road from San Pedro de Alcantara to the historic town of Ronda is the most iimportant inland connection.

Ronda is on a towering plateau nestled in the mountains 48 kilometres inland from Marbella . Ronda is one of the prettiest and most historic towns of Costa del Sol and is a popular day-trip for tourists who look for history and culture in one of its many lovely cafes and restaurants. The town is also famous for El Tajo , the plunging river gorge that divides the medieval from the 18th-century parts of the town. The spectacular gorge has a stone bridge, Puente Nuevo that was once a prison and is today a dramatic viewpoint for visitors. The walkway El Parador along the river gorge offers a terrific view of the surrounding landscape. Ronda is also recognised for its bullring - the oldest and largest in Spain. In addition to a museum, the bullring is open to visitors (so long as there are no bull fights ongoing!)

For more information about the Costa del Sol visit - http://www.costadelsol-web.com/index.html

Myself and my family moved to the Costa del Sol in September 2000 after working in central London for over 30 years. Looking for a more relaxed way of life and a more secure environment for my three daughters the Costa del Sol fitted the bill. For detailed information about moving, living and property on the Costa del Sol visit - http://www.costadelsol-web.com/

The Costa del Sol, Spain / Author: Richard

Richard is a keen golfer that has lived on the Costa del Sol for a number of years and has a good insight to golf in this area. Many of his articles and drawings have been published to view a complete guide to golf on the Costa del Sol visit his Website - http://www.costadelsolgolf-web.com/index.html
http://www.costadelsolgolf-web.com/

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Barcelona Tourist Bus - a great way to visit the city.

You may think that you’re not the kind of person to take an open-top tourist bus when you visit a city, but the Barcelona tourist bus is a great way to get around. Read on to find out why.

As far as European cities go, Barcelona is a relatively easy city to navigate. Its natural mountains and seafront means that it has a gradual incline, and also is very compact. This does however mean that some of the city’s sights are missed, as it’s sometimes tiring walking uphill for half of the day, and downhill for the other half. The city’s metro system is a great way to get around quickly, but you miss out on actually seeing the city, and often are disoriented when you get back up to street level (everyone does the same in rotating the map around a few times to double-check where you are!).

So in steps the tourist bus which solves all the previous problems we’ve mentioned. There are 2 companies in Barcelona operating this service (both following the same routes) but the one I recommend is the Barcelona Bus Turistic, which is the one run by the local council. This basically translates as there are more buses driving around the city, so you don’t have to wait as long at the bus stops.

The Barcelona Tourist bus has 3 routes, but I would say only 2 are worthwhile - the red and the blue route (North and South routes). The 3rd green route only takes you to the forum building (conference centre which was a bit of a flop and cost the mayor his job in 2004). So if you concentrate on the red and blue routes, you can visit all of the city’s sights, and have the added bonus of being over-ground as you do it, so you actually see the whole of Barcelona, too. Obviously during the spring and summer months it’s great to be on the top with no roof and a nice breeze running through your hair while you take in the stunning architecture of Gaudi, the amazing Camp Nou football stadium, the magic dancing fountains at Placa Espa?a, and many, many more attractions.

Many people always head for Pla?a Catalunya - the city’s main square – to start their bus route, but this is the most common mistake. As this is where the blue and the red cross over, and it’s also where the Main tourist information office is, then there is the assumption that this is the starting place for the tourist bus – but the routes are just a loop, so it doesn’t matter where you start or stop. A tip is to go down to the Port, for example, where there are always fewer people waiting around. You can buy the ticket on the bus, and also have the advantage that human nature means that as the people who are already on the bus see the waterfront and the port, they think it’s a great place to get off (happens every time) and loads of people will pile off, leaving many free spaces.

David writes about Barcelona apartments and Cheap barcelona apartments.

Barcelona Tourist Bus - a great way to visit the city. / Author: David Brydon

David Brydon is an Englishman living in Barcelona, Spain. He is married and has 2 children. He has been working in the vacation apartment rentals business for 7 years.
http://www.bcn-rentals.com

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