Home Equity Line of Credit

A Home Equity Line of Credit (HELOC) can be dangerous and we descibe what to watch out for below. Home Equity Line of Credit is abbreviated as HELOC. This refers to a loan in which the lender agrees to lend a maximum amount within an agreed period. This differs from standard loans or a reverse mortgage because the borrower is not advanced the entire sum up front, but uses the line of credit to borrow sums totaling no more than the amoun...

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Reverse Mortgage Information

A Reverse Mortgage is known as a Home Equity Conversion Mortgage and abbreviated as HECM. This refers to a loan in which the lender agrees to lend a maximum amount within an agreed period. This differs from standard home loans (the heloc) because the borrower is giving up their home (they still reside there) in return for monthly payments, hence; reverse mortgage. At first, a reverse mortgage sounds like a great idea, but you or your parent(s) may actually be falling for a scam. The housing...

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Avoid Private Mortgage Insurance

PMI (Private Mortgage Insurance) (what I consider a rip off!) is an amount you have to pay it if you put down less than 20% on a new mortgage. I think of PMI as a penalty, because you never get the money back, you simply shell out cash to the lender. Mortgage companies claim that it’s a form of protection for them, in case you default on your home loan. Many companies abused this protection and would make it extremely difficult to cancel the PMI, in fact, they abused it to the point that...

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