Banking, Money and Finance : Live Well Financial: Getting a Reverse Mortgage Online: Dos and Don’ts

(Prudent Press Agency)--- Looking for a company that handles reverse mortgages online is easy, just type in “reverse mortgages” in your search engine and the results that will come back to you are quite staggering. However, looking for a good reverse mortgage company online, such as livewellfinancial.com is quite a challenge, and there are many pitfalls that you should avoid at all costs.

Here is a list of dos and don’ts that can help you both find a very good and reliable reverse mortgage company, and at the same time avoid those thieves and scammers just trolling around cyberspace, looking to make a quick buck. True, these are sound, basic advice, but you’d be surprised just how many people can forget these things in the face of a really good deal.

DO: Scout around and canvass

Like when buying a car or looking for a good school for your kids, you won’t just get the first one that comes by. These are big decisions in life, and getting a reverse mortgage is also a big financial decision. You should look around the Internet, ask your local Better Business Bureau, or simply ask friends and family whether they can refer someone to you. Online, if a website has a lot of referrals and testimonials, like Live Well Financial, this can be a very good sign, however, it won’t hurt to still be a little careful with whom you do business with.

DO: Get all the needed information first

You never charge into a war without a loaded gun, and so you should never get into a reverse mortgage contract before making sure that you know what you need and what you’re getting into. Thieves and crooks will often use your ignorance to slip one over you, whether it is an unnecessary charge or consultation, so it’s best to come prepared.

Livewellfinancial.com will not only give you the basic information that you need free on their website, but should you have any other questions, you can either contact their customer support team online, or get a free financial counseling session from them.

DON’T: Give away sensitive information on the Internet

There are two pitfalls that you have to avoid when giving out sensitive information on the Internet, such as complete name, addresses, SSS numbers, credit card numbers and the like. Reputable company would never ask those kinds of information online, as there are a lot of hackers and cyber thieves out there who are great at extracting this kind of information, even if the data is encrypted and secure. Also, companies that ask for this kinds of information can be quite dicey, because there are times when they are really just hackers looking to make a quick buck off your credit card number.

Livewellfinancial.com is a site that requires you to become on-premises when you get a reverse mortgage to give your sensitive information. This is to ensure a quick and secure transaction between you and the company.

DON’T: Sign anything that you don’t understand completely

A lot of reverse mortgage companies employ a really old trick in the book. Use a lot of complicated jargon and terms to confuse the client, and then slip in a clause or two about very high fees, interest rates and other such things. Don’t ever put your signature on a contract that has even one part that you don’t understand, and always, always, always read the fine print.

Livewellfinancial.com offers you a service that is direct-to-the-point and very easy to understand, so that you know what you’re getting into, and what you’re going to get.

Source

SOME FINANCIAL ADVICE ON THE QUESTION OF REVERSE MORTGAGES

Peter and Lana have seen the TV commercials about reverse mortgages. They were wondering if it would be a good way to go to help ease their current financial situation.

A reverse mortgage is simply an advance on the value of your home that accumulates interest. The accumulated debt does not need to be paid off until you die, sell the home or move out of the house. If you qualify, and are over the age of 62, you can get up to 30% of the value of your home and you can do whatever you want with the money. According to information, a reverse mortgage delivers the cash tax-free. Of course, if the money is used to invest and produce an income, some or all of that income will be taxable.

It is very important to understand the cost of a reverse mortgage before getting into one. Information obtained states that there could be an administrative fee of about $1,300 to set up your plan or more. On top of that, you will be able to choose a term of six months, one year or three years to determine the interest rate on your loan. Rates, of course will be subject to change at the end of the term. Interest is compounded semi-annually.

For example, if Peter and Lana get a reverse mortgage for 30% of the value of their $250,000 house and choose a three-year term (7.50% on Sept. 13, 2005), they would get $75,000 today to do as they please. Don't forget the $1,300 set up fee. Lana, at age 62, has a life expectancy of about 24 years. At that time, assuming no change in interest rates, the amount owing will have grown to over $439,026.

In spite of escalating home values over the last several years, they haven't appreciated in value much more than the rate of inflation over long periods of time. If we assume an inflation rate of 3% their home may be worth about $508,199 in 24 years. That leaves only $69,173 after paying off the loan. A contract clause found, states that "as property values decrease, the amount to be repaid is never more than the fair market value of the property at the time it is sold".

There are other ways to get money out of your home. You can sell it and buy something smaller. A home equity line of credit at much lower interest rates may also be a possibility. Talking with a Certified Financial Planner and exploring other ways to create income might be your best investment. It appears a reverse mortgage is great, if you have no one to leave your equity to.

Source