Is a reverse mortgage a good thing??

By Doc Schmyz

If you have already heard the term reverse mortgage, it still sounds like a strange thing. If this is the first time you are hearing the term, it will probably sound like some kind of shady deal. Reverse mortgages are becoming more and more popular these days, but are they scams or are they legitimate?Is it really possible to sell your house back to the bank and still retain the deed to it? Will the bank really pay YOU the mortgage payments? Let's review what a reverse mortgage is so these questions can be answered.

The name is somewhat misleading. A reverse mortgage is a loan that is structured like a mortgage, with YOU as the lender and the BANK as the buyer. In the U.S., homeowners wanting to initiate a reverse mortgage must be at least 62 years old, and own all or most of their home. The qualifications may differ in other countries. These backwards mortgages are usually performed through a bank or broker. The senior citizen homeowner essentially sells his or her house to the bank, in return for receiving periodic mortgage payments. Sometimes the payments can be structured as a lump sum, line of credit, or a combination of the three methods.

So what are the benefits to a reverse mortgage? It provides a constant and dependable stream of retirement income. Most retirement plans such as 401(K) or Individual Retirement Accounts (IRA) generally increase in value, but are still tied to stock market. The amount of money they provide during retirement can vary. A reverse mortgage can supplement a senior citizen's income. The amount depends on the homeowner's age, equity of the house, interest rate on the loan, closing fees, and a few other factors.

One very common misconception about the reverse mortgage is that the bank eventually takes ownership of your house. This is not true! The deed remains in your name throughout the entire term of the process. Note that there is interest on the loan payments, but it is deferred until the loan is repaid.

The homeowner can remain living in the house during the entire term of the reverse mortgage. The loan becomes due only when the homeowner moves out, such as moving into a nursing home, or becomes deceased. At those times, the survivors can repay the loan themselves if they want to keep the house. They can also sell the home and repay the loan plus the interest in full. The money paid to the homeowner as mortgage payments must be repaid to the lender when the loan becomes due.

These odd mortgages can provide much needed financial support during retirement. It is a time when medical costs are likely to increase, so an additional source of income can really help. Use a reverse mortgage to help yourself or your aging relatives to gain the financial security in retirement that they worked so hard to achieve. - 23222

About the Author:

Doc Schmyz has done real estate deals all over the US and Mexico. His free website shares Real estate investing information for all over the US. Find Real estate investing information by state

What You Should Know About Being a Personal Real Estate Investor

By Gary Z. Bryant

So you've decided to make use of your pooling cash and get some passive income? If yes, then real estate is the investment for you. Be warned that making money from real estate may not be so passive depending on how you want to make money from your property. But with the right kind of skills (and the information provided here) you can kick back while the profits roll in.

The first step as a personal real estate investor (aside from assembling the funds) is to find the right people to deal with. Real estate is a perilous industry fraught with people who aim to maximize their own profit from any deal. And they will do this even if it means ripping you off.

To make sure that a possible transaction is a fair one, make sure you have a good property inspector check out the property. It will also help you out if you are well informed on the market, especially in the area where you are considering the purchase of some property.

So now that you have purchased the property then what? The more passive approach is property improvement so you can sell the property at a higher price than you originally bought it. This requires that you can make the improvements yourself or have access to people who can. If you do not want to let go of your investment then you can take the more active approach namely leasing it out. Leasing also involves property improvement.

This is important if you want to attract tenants. The other difference with leasing is that you have to constantly maintain your property to an acceptable level. And how acceptable depends on how much rent you plan to charge. There is also the issue of tenant relations. Your tenants should sign a contract that legally protects your property from damage that may be too costly to be considered part of maintenance.

You will need patience, time, and good skills to be a personal real estate investor, things that aren't required when getting involved in institutional real estate investing. With new real estate investment trusts today, that gap between personal and institutional real estate investing is quickly closing up. However, there are still many tricks that only a personal investor can get by with. One of these is the total control over the acquisition of property.

With full control, the ways to acquire property are plentiful. Acquisition can come from direct buying, buying foreclosed property from the bank, or taking ownership of property used as collateral for a loan. Another is the ability to use the property for ventures outside the scope of real estate.

For many years real estate has been a very popular method of investing. Today the economy has made the cost of property drop drastically, which is resulting in many investors scurrying to get their piece of the pie. If you have good managements kills, skills with people, and some business knowledge, you can definitely make a profit with personal real estate investment. - 23222

About the Author:

Scared to invest in real estate? This is wrong. Ask Gary Z. Bryant. Find more about Real Estate Investing and Real Estate Foreclosure Investing In Las Vegas

A Few Tips About Correct Investment Research

By John Maccain

When it comes to investing money, there are thousands of schools of thought, opinions and viewpoints. Despite common perceptions, investing is a real science that is effective if conducted properly.

It isn't advisable to make investments according to just emotion or impulse. It's your cash; parting with it is not an option. The most important thing to do before investing is performing good research.

There are what are known as the "Five Pillars" of global marketing influences. These five elements are of utmost importance in making a correct analysis of where you should put your hard earned money.

Pillar 1, Technical. This is the step where you will want to use world market statistics to gain knowledge on patterns. You will learn how to predict market fluctuations when you start to see these patterns clearly. Now this one support might be the basis of a whole article, but this is just a tip to get you at least look in the right way before invest.

Pillar 2, Economic Trends. A specific economic is like a pillar 1 and it is one among the statistical analysis. At this tip you should reply question for physically like what is going on with the worldwide economy? In what direction are things moving? you can then predict what the markets will do over time. Acupuncture, intravenous nutrition therapy and a sauna detoxification. Uncovering this type of information will allow you to eliminate areas that exhibit poor trends.

Pillar 3, Politics. As well as other relevant information like changes in leadership, wars and other conflicts internally or between/among nations. Find this out, as well as other relevant information like changes in leadership, wars and other conflicts internally or between/among nations. The political scene of a country has a definite effect on the economy and trade of that country. So it's significant information to gather to give you an overall world view and a correct estimation for future or present savings.

Pillar 4, Geo Politics. In this division of your examination you will be look at global power, and analyzing world topography, history and social discipline and looking for patterns. What is the influence of the past and topography of the place on associations with different nations? This works very closely with Pillar 3, but from a geographic perspective.

Pillar 5, Solar Geography. This pillar is related to Pillar 4, but at this point you'd be investigating historical events from the perspective of meteorology, oceanography and seismology, and how these subjects affect the conditions of the planet and specific countries, and thus the economy of the countries.

In order to completely know the subject of investing in three dimensions you really need to know about a lot of technical, scientific and historical things that are needed for it. But that's what separates the great investors from everyone else. If you want to get good at this subject, you have two choices, Study, study, study and learn it yourself. Or do your investigate in finding a expert who by now know this subject. what's known as "diamond grinding" is used. In also case, it can be a thrilling and satisfying subject when done properly. - 23222

About the Author:

He has had success in with the Five pillars of worldwide marketing influences to be able to envisage investment opportunities with immense accurateness. To find out more, go to www.mystrategicforecast.com.

The Forex Exchange Market and Stock Market

By Calvin Wapasa

The FX market is also referred to as the international foreign exchange market. Dealing that happens between two nations even if they have unique monetary systems thanks to the foundation of the FX market as well as the background for the dealing in this marketplace established in the early 70's the Forex market is over thirty years of age where you are not investing or trading in business enterprises instead your are selling and trading systems of currency.

There is a difference between the forex market and the stock market is the incredible amount of trading that takes place an amazing two trillion dollars or more can be traded each day, a significantly higher amount than the money traded on the daily stock market of any country. The foreign exchange market is one of a few that involves governments, banks, financial institutions and those similar types of institutions from other countries.

The items that are bought and sold on the fx market are easily liquidated meaning it can be turned back to cash fast, or often times it is actually going to be cash. The currency of one country to another the availability of cash in the forex market is something that can happen fast for any investor from any country.

The difference between the foreign exchange market and the stock market the first is worldwide. Where as the stock market only happens in one country due to dealing with the businesses and products in that country the foreign exchange market goes beyond that and involves any and all countries.

The stock market has set business hours and generally, follows the working business day this means that it is closed on holidays and weekends The foreign exchange market is open 24 hour a day because of the vast number of countries that are involved in trading, buying and selling that are located in so many different times zones. Markets open in one country other countries are closing their markets which makes this an ongoing process of how the foreign market training happens

The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the Spanish peso and the Spanish stock market. Different then the foreign exchange market you are involved with many types of countries, and multiple currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the foreign exchange market. - 23222

About the Author:

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How to Invest - Selecting an Discount Online Broker Thats Right for You

By Sara Ferguson

As a general rule, online investors who use discount brokerages arent seeking the advice of a traditional broker theyve known for the last ten years. Most online investors want brokerages that are stable, provide excellent customer service, and offer different types of choices. The following list shows some of the criteria that investors use to judge discount online brokerages:

1. Ease of use: All online investors want their Web-based brokerages to be easy to use. Web sites need to be uncluttered and free of slow-to-download graphics and useless tools.

2. Prompt customer service: When online investors telephone customer service, being on hold for several minutes is unacceptable. Online investors with large portfolios want more sophisticated financial services and advice. Many are willing to meet with financial advisors for that human touch.

3. Reliable responsiveness: System-wide brokerage crashes arent acceptable. Quick and accurate trade executions are important for all investors.

4. Investing options, products, and tools: Online access to IPO information, options, and other financial products is a must. Many online investors expect research, real-time quotes, and other market information.

5. Low fees: Hidden costs are often associated with online brokerages. These hidden costs can quickly wipe out your profits. Consequently, you need to read the fine print before signing up for a new account. - 23222

About the Author:

Sara has been teaching investors how to invest for years with a multiple streams of income goal in mind. She sets everyone on a path to not only teaching them how to invest but showing them how to teach themselves!