How High Reverse Mortgage Closing Costs Solve the Problem

By Mudbrow Vanrock

If I were to name the biggest hurdle to get over, with prospective clients in the reverse mortgage business, it would have to be the closing costs.

There is no doubt, and I let my folks know this upfront, reverse mortgage closing costs, for FHA insured mortgages, are higher than typical forward mortgages.

Reverse mortgages, which are insured by HUD, have high closing costs for multiple reasons... It starts with the lender charging costs based on the home's value. Forward mortgages charge costs on the actual loan amount, which is going to be less than value.

The second is FHA charges 2% of the value of the home up to $417,000. And the last is reverse mortgage lenders charge an origination fee .5% to 1% higher than typical forward mortgages.

No need to do the math. You can extrapolate that there are some costs to pay. And no one is happy about it.

One could argue the origination fee is not really higher than a typical mortgage, because forward mortgages simply build the fee into the rate. That's another subject for another day.

When it comes down to it, the FHA mortgage insurance is the culprit when determining why reverse closing costs are as high as they are. The thing is without this pricey mortgage insurance premium most seniors would be stuck with a second rate reverse mortgage and many with none at all.

To put this into perspective, a seventy year old customer with a two hundred thousand dollar home would be entitled to borrow roughly $130,000 with an FHA insured mortgage.

There was once a number of outlets for non-FHA insured reverse mortgages. They exist only as ultra niche scenarios now. The reason is they simply couldn't compete with the FHA reverse. In our example a reverse mortgage customer, using a private product, would receive $100,000 at best.

Why ? Because the FHA insurance, everyone is so unhappy about, allows lenders to feel comfortable enough to lend such large amounts.

Companies are now going out of business because more is owed on mortgages than the home is actually worth. FHA mortgage insurance covers a reverse mortgage company in this circumstance.

The basic fact about the high cost to get a FHA reverse mortgage is you gotta pay to play. People have real financial issues that the cheaper, proprietary reverse mortgages simply couldn't solve.

About the Author:

A pair of tremendous resources to help prospective Texas reverse mortgage customers gage whether the Texas reverse mortgage is a viable option click on either of the A pair of links in this section.

3 Tips for Locating a Consumer Credit Counseling Service

By Steve Collins

Selecting a consumer credit counseling service seems like a fairly straightforward task. However, with the field growing by leaps and bounds, it is in your best interest to take some time and follow a few tips to make sure that the consumer credit counseling service you choose is reputable and offers the best services.

One recent and unfortunate trend in the industry has been a steady rise in the numbers of consumer complaints lodged with various reporting agencies and watchdog groups that keep an eye on the consumer credit counseling service industry. Sadly, whenever an industry sees meaningful growth year after year, the temptation of easy money invites disreputable players who, provide poor service and even actively work to cheat customers. It is particularly upsetting when the business caters to people who are already facing grave financial problems.

One of the best tips when searching for a credit counseling agency is to pass over any consumer credit counseling service that has not been in business at least 8-10 years. An extensive track record in the consumer credit counseling service industry usually indicates a business that is run professionally and that provides good services for the fees they charge.

A second tip is to verify the professional accreditation of each consumer credit counseling service you're considering. Look for agencies that have been formally accredited by either (or both) the Council on Accreditation (COA) or the International Standards Organization (ISO). Note: always make sure that the consumer credit counseling service you choose has a current accreditation with these organizations! Some will have been accredited in the past, but may be operating now on a old certificate.

Finally, due diligence requires verifying with the Better Business Bureau and your State's Attorney General's Office for complaints against the agency. You might be astonished by what you uncover with these simple checks. Many disreputable credit counseling agencies remain in business, even after many complaints have been lodged against them. Take the time to check each one out thoroughly before choosing one and paying them for their services.

About the Author:

Steve Collins is a writer and journalist. In these trying times, he knows the importance of obtaining effective debt solutions if necessary. Read his article about debt solutions here.

Credit Cards: Information For When You Travel

By Michael Benifez

In today's world, it is common for most people to have at least one credit card. It allows for ease and speed, when shopping in a store or online. Merchants will more than likely accept many types of credit cards, allowing you to get what you need.

It does not matter where you happen to be shopping, most stores accept some sort of credit card. It makes for ease of the transactions to be processed. You do not have to worry about not having enough cash, because a credit card will go through as long as you have not breeched your monthly limit. This is a great way for the store to retain customer business and to encourage consumer spending.

You will find that online shopping is made much easier by using a credit card. You can rest assured knowing that it is very easy to use your credit card securely when making an online purchase. You do not have to worry about writing a check or purchasing a money order, your merchandise will ship more quickly when using a credit card.

When traveling throughout the world, a majority of locations will accept credit cards. This can give you peace of mind as a traveler, when you do not have to carry large amounts of cash that can be lost or stolen. It is a good idea when traveling to alert your credit card company, so that they are kept apprised of the apr rates and purchases you will be making in another state or country.

You can travel with confidence knowing that the credit card you carry will be accepted all over the world. You are protected and can purchase freely with confidence when you have a credit card. You will be able to make the purchases you need with no problems.

About the Author:

Learn more of what Michael Benifez has to share over at http://www.everlife.com. The time has come to erase any doubts you may hold on the subject of credit card apr rates.

Practical Information On Cash Advance

By Don Pedro

When it comes to handling the payday checks online it always requires proper knowledge and professional advice since it can be a huge risk to deal with such things. So you need to have a very clear idea about what you are doing the best possible way to do that. So it can become devastating when not dealt in the proper way.

This is not a very uncommon case that you are in need of a handful of cash and there is no friend or relative who can help you with that. Well this is the case where payday online can come at your service. This service gives you the option through which you can get a load at the earliest possible time.

In the case of quick loan service, only the citizens of the particular country are eligible to get the loan from the organization within the country. Like in UK only a British citizen may receive the loan within 24 hours. This is to protect the investment of the financial institution since it is never easy to track a foreigner after providing the loan.

Never go for the cash advance company about which you are not feeling quite comfortable. Especially when there are many such organizations available for serving the same purpose why going for the one whose terms are not looking very promising? If you are not satisfied with one then there are always a number of alternatives from which you can pick one.

It is too difficult to get loans if you don't have a steady job. The financial institutions always check on the employment status of the loan seeker. A person may get 30 seconds loan if he or she has a job for at least 3 months.

If you want to get a loan then you have to have a steady job. There is no organization that will provide you a loan without checking it out whether you have a job or not.

When it comes to seeking loan from advance cash provider organizations always make sure hat the one you are going for is a reputed one. No matter how good and easy the terms are of an institution never go for them if they are not very much well known. By asking questions through online you can judge them.

In case of getting a bad credit payday loan facilities in US, you need to be a US citizen above 18 years of age. But even if you are not the citizen of US you can still get the loan from some financial institutions of you meet the main terms they offer.

About the Author:

Don Pedro provides insightful information about Arkansas Online Cash Advance Loans , or Amercian Cash Advance Loans on the resource site at http://www.cashadvancehints.com

The Numerous Types Of Poor Credit Mastercard

By Kurt Russel

Even in these hard times there are a huge number of credit cards inundating the market and even if you unfortunately have a bad credit score, the likelihood is you may still be eligible for some of them. All The Same, individuals who are finding themselves in a poor credit situation will find that Mastercard and Visa are the two companies that are most likely to say yes to to supplying a credit card. The main thing you need to consider is, what makes a poor credit Mastercard a more advisable choice to try for over Visa?

Places across the world readily accept both forms of credit card and although Visa appeared to have a greater number outlets, that is probably not the situation as these are closely matched. Now it seems, in numerous situations it is really Mastercard that is acknowledged more readily and accepted in outlets. There is every possibility the advantages of both will be very much in-line with many other cards, they will more than likely learn that the interest amount levied by the two parties will be somewhat higher than normal. However, if a user supplied with the Mastercard only ever uses it in a responsible manner, and makes the payments before they are due, they will soon see improvements in their credit score. Then of course added to this will be an improvement in the interest you are expected to pay on the card later on, once your state of affairs has resolved itself.

Generally with any financial agreement, it is always best to check out the terms and conditions you have to adhere to if you are making an application for a bad credit, credit card. Of course, the Internet is the quickest and easiest method to find out more about what avenues are open to somebody in your financial predicament. Those unfortunate people with a poor credit record can see exactly which companies will issue a Mastercard to an individual who is experiencing this situation.

Listed below are just a couple of the potential cards you may discover or be allowed to request, so it is a good idea to learn exactly what you will be able to anticipate from them in advance.

1. Continental Finance Gold MasterCard

When you choose this particular card you can be reassured that the way in which you use it will be reported to the big three credit accounting establishments which can help you rebuild your credit history progressively each month. Strangely a credit company will increase the limit available on the card when they can see the individual it has been issued to is acting well and making instalments on time each month.

2. Orchard Bank Platinum MasterCard

Normally, credit card companies will demand an initial payment before supplying the card which can be awkward for numerous people but that is not the situation with this card and in spite of this they still provide protection on all the goods it is used as payment for. This credit card, just like the Continental Finance Gold Mastercard, send details regularly to the three credit bureaus which can rapidly better your rating. Two other advantages to this particular card over similar versions includes the competitive annual percentage rate it makes and a much smaller annual payment which can be of tremendous help to those who are financially embarrassed.

About the Author:

For a greater understanding on the subject of Student Mastercard. Visit us for lots of free information at mastercard rewards.

How To Improve Your Credit Score

By John Cooper

Improving your credit score can seem like a daunting task. The credit bureaus claim to factor in hundreds of things and you have no direct control over your score.

Well they are wrong. No matter how bad your credit score is you can take a couple easy steps and improve it.

1. Dispute and remove negative items on your credit report. This can be done yourself or you can hire a service to do it on your behalf.

2. If an item is verified then work out a way to pay them in exchange have the item removed from your your credit report.

3. Pay your bills on time. It is estimated that missing a payment can damage a good score by up to 50 points.

4. Open a new line of credit. You will get the most benefit if this is a revolving line of credit. We recommend an unsecured credit card.

By paying your monthly bill you will develop a positive payment history. This is a heavily weighted factor when your score is being calculated. If your score is currently to low to get an unsecured credit card then open a secured card just make sure it reports to all three bureaus.

In addition by keeping your balance at approximately 10% of the credit limit it will build the most credit. This shows that you use your credit and use it responsibly.

5. Pay off large debt. Your score will get a bump if you have high available credit to debt. The bureaus want to make sure you are not overextended and by showing them you have available credit your score will get a bump.

These are the only factors you should focus on when improving your credit score. There is one last tip that is surrounded in controversy.

6. Piggyback credit, this is where you become an authorized user on a high credit limit credit card. The benefit is this account is now reported on your credit report and adding a tremendous boost.

This tactic has been widely abused and the scoring model has adjusted its formula to discount authorized users. However there is a debate over if this change has occurred yet or not.

In sum, focus on steps one through five and you are on your way to a 700 credit score. You don't have to live with bad credit you can increase your score and your quality of life.

About the Author:

To learn more about how to remove judgments, charge offs, late payments, collections or any negative mark or to learn about lexington law firm a professional credit repair service visit us.

Foreclosures: Real Estate Investing The Smart Way

By Tomasheus Privetsky

If you had been watching the real estate foreclosure investing market closely during the massive housing boom of 2000-2005, you could have seen the current foreclosure crisis coming; and with it, the many foreclosure investment opportunities which have proliferated nationwide.

There have been many foreclosures and most of the sub-prime lenders are now out of business. There are many opportunities here for the real estate investors who can keep ahead of their competition.

Will You Be Able To Capitalize On This Foreclosure Boom? On the surface it seems easy enough. Get a list of properties in default. Contact homeowners. And get the deal done at a juicy discount, before the bank takes the house. Then you can fix it up and flip it, or keep it as a rental with an instant built-in equity profit. Right? Well, not quite.

Getting into the foreclosure investing game could be an extremely lucrative move that alone could not only feed your family but pay for lavish lifestyle and vacations. Or it could turn into a big black hole consuming all of your time, energy and marketing dollars.

In fact, there are only a relatively small number of investors who have managed to make their foreclosure investing profitable on a consistent basis. Many investors make the mistake of not trying hard enough to set themselves apart from others in this very competitive market.

How Can You Stand Out in the Competitive Business of Foreclosure Investing? To call foreclosure investment a competitive field is understating things. A lot of news stories have come out about these investments, meaning that many investors have gotten in on the action. Investors send mountains of mail, deluge homeowners with phone calls and some even go so far as to show up at their doors.

In short, if a homeowner is behind on payments, you can be prepared for a major fight for his attention. Just imagine for a moment that person sitting at his kitchen table plowing through a pile of letters from lawyers, bill collectors and investors. Your mailing piece is just one of many that goes straight to the garbage can. You must find a way to differentiate yourself from the investment crowds. Here's an idea that will put you ahead of the competition.

The Only Ethical Way To Approach Foreclosure Investing. Truth be told, for most people who are behind on mortgage payments and in danger of losing their home - talking to a real estate investor about selling the home is the very last thing on their mind. They often perceive foreclosure investors as sharks taking advantage of their situation.

So, if you want your phone to ring with people in foreclosure, contact them with an offer to keep the home.

Move For Advantage In Foreclosure Investing - Giving Homeowners the Option to Stay in Their Homes Instead of Buying It. For starters, giving homeowners a chance to stay in their homes is the ethical thing to do, plain and simple.

Also by going about things this way, you can also make a profit. You should offer to help the homeowner negotiate a payment plan via their lenders loss mitigation department. Of course, you can charge a fee for this service as well. There are a lot of opportunities to offer this service currently, since so many homeowners are looking at foreclosure. You can get a list of contacts in the loss mitigation departments of mortgage lenders all over the country.

Lastly, this is the most profitable foreclosure investing approach. In many cases you will end up buying the home. Remember, the loss mitigation process will only work for those owners who got behind, but now recovered their ability to pay. Most won't qualify for a repayment plan because they can't prove their hardship is behind them. And they won't know it until you, the foreclosure investor, helped them to pencil their income and expenses on paper and submit it to their lender. Now they have undeniable proof they can't keep it and youre right back to your original foreclosure investing game plan. Once the reality settles in, they'll start talking sale. Who will they sell to? You, of course, the foreclosure investing pro. You have now earned their trust and it's the only next natural step to take.

About the Author:

Imagine having preforeclosure owners literally eat out of your hand. This foreclosure investing strategy will help you get there.

Platinum Credit Cards

By Gray Rollins

Platinum credit cards offer more benefits and purchasing power than the Gold or Standard credit cards. The status associated with Platinum credit cards is one of the reasons people prefer this card. In today's society where image is so important, possessing a platinum credit card says you are a successful person. This card is for those with a high income and excellent credit rating.

One type of platinum credit card offered is the American Express Platinum credit card. This card will allow you up to $100,000 in credit depending upon your credit history and income. This is a highly prized card because of the status of having one and the benefits that come along. Known for being very liberal with credit line increases, they are more so the longer you keep your credit card, American Express also offers a 1.5 rewards points every time you purchase an item using this credit card.

MasterCard Platinum credit card is another card that is accepted worldwide and offers reasonable interest rates for purchases. The MasterCard credit card company only requires prompt payments to maintain the reasonable percentage rate.

Those professionals who are earning higher income and are qualified to avail MasterCard Platinum but the interest rate for this kind of credit cards usually increases, especially when the payment made is only for the minimum outstanding balance for the period. To avoid 35% rate increase on interests, pay the balance due for the month on or before the due date.

The Discover More Platinum credit card is another credit card that is suitable for people who can afford the payment but prefer the 0% annual fees and low introductory APR. The APR will remain low if the payments are made on time and good credit score is maintained. This card also gives high spending limits to cardholders with rebates and bonuses for every purchase. Online account is also accessible anywhere.

When you are eligible for a platinum credit card you will have more benefits from this card than either the silver or gold credit cards. The platinum card has always been reserved for those with an income level that is above average and the financial savvy to keep their credit at excellent levels. Platinum credit cards have many services, such as concierge services that are part of the benefits of qualifying for this card.

Platinum credit card is also offered to business institutions for their company purchases. The features of the business credit card are the same with that of the personal credit card. Some credit card companies offer the platinum business card with no APR on the first twelve months and low APR thereafter, while some offer no annual fee. To avail the 3 to 25% discount on purchases, buy the materials your business needs from those stores affiliated with the credit card companies.

There are cards which are advertised that are called platinum shopping cards. These platinum cards are not to be confused with a regular credit card. Although they are credit cards, they can only be used to buy merchandise at the participating stores. They do, however, report to the credit bureau so they can help to build your credit score up by using it to purchase merchandise and keeping the balance paid.

About the Author:

Not all Platinum Cards are created equal. In fact, some are just downright lowsy. Get the finest Platinum Card available by applying for the American Express Platinum Card today and you'll receive 25,000 points to get started.

Credit Repair After Bankruptcy

By Matt Douglas

If you have filed bankruptcy you should expect your credit will be severely damaged. However there is hope, you can take action to remove your bad credit and by building some positive credit you can have a high score.

The truth is that this mark does not have to remain on your credit for 10 years. To remove it we suggest:

1. Dispute the mark with the bureaus.

You can do this yourself or hire a service to dispute the mark on your behalf. Did you know that the bureaus do not check public records when they investigate an item? Public records are where this mark is recorded and where the bureau would find verification.

Congress passed the Fair Credit Reporting Act and this says that the bureaus must remove any item on your report that can not be verified. People frequently ask if credit repair is legal. It is not only legal but this act explicitly says any mark you do not feel is accurate can be disputed. There will never be any legal ramifications for filing a dispute with the bureaus.

It is rumored that after 2 years it is easier to remove this mark, however it is not required. Additionally we suggest you make sure that any negative item on your report reads "included in bankruptcy." The reason for this is you will later dispute the validity of these items because your report does not show a bankruptcy.

2. When your bankruptcy mark is erased, you can start to dispute each negative account.

You can dispute it on the basis that it says "included in bankruptcy", but you do not have a bankruptcy on your report. Thus each negative mark should be erased once investigated. Doing this will give you a clean slate on your report.

3. We suggest you start building positive credit. This is most effective by opening a new revolving line of credit such as a credit card.

By making your on time monthly payments you will create a positive payment history. Additionally keep your monthly balance at 25% of your available limit because this will show the bureaus that you do use your card and use it responsibly. This will improve your ratio of available credit to debt, a very important factor when your score is calculated.

It may not be the most ethical move to dispute a mark you know is correct. However how ethical is it for a lender to charge you 30% interest rate, especially if you have kept you account in good standing for years. Unfortunately all it takes is one missed payment and you can face fees and interest rates, no matter how long you have been a model customer.

In sum you can remove a bankruptcy and all the negative marks on your credit report. If you build some positive credit and remove the negative credit you can achieve a very high score. This will improve your quality of life by; lower interest rates, more purchasing power, and extra money.

About the Author:

For a review of Lexington Law a suggested credit repair service www.lexingtonlaw.com visit us or for an article about how to remove a civil judgments.