A married couple may decide to get a reverse mortgage but leave one spouse off the HECM. If the borrowing spouse dies or moves out permanently, a non-borrowing spouse can continue to live in the home as long as he or she is listed in the HECM documents as such. The surviving spouse must maintain the home and pay taxes and insurance as long as he or she continues to live in the home, and will not receive any of the reverse mortgage proceeds.

On the whole, the lowest interest rates are available to borrowers who have large deposits, or in the case of those remortgaging, significant equity in their property. Typically, you’ll need at a deposit of at least 40% to be eligible for one of the best rates. If you have only 10%, there are mortgages available but you’ll probably pay a higher rate.
There are a number of programs to assist homeowners who are at risk of foreclosure and otherwise struggling with their monthly mortgage payments. The majority of these programs are administered through the U.S. Treasury Department and HUD. This page provides a summary of these various programs. Please continue reading in order to determine which program can best assist you.
This makes the 30-year fixed-rate home loan very different from an adjustable-rate mortgage (ARM). An adjustable loan, as its name suggests, has an interest rate that can change over time. But the 30-year fixed-rate mortgage remains true to its name, keeping the same interest rate (and the same monthly payment amount) through the entire repayment term.
Mortgage term. A mortgage term is the length of time used to calculate your payments. If you take out a 30-year mortgage, your monthly payments are calculated by amortizing the loan over 30 years, aka 360 months. At the end of the mortgage term, your home will be paid off unless you have a balloon mortgage. For a balloon mortgage, payments are generally calculated over a 30-year term, but have a maturity date of three to 10 years. On the maturity date, the balloon payment (remaining principal balance on the loan) is due. In most cases, homeowners refinance or sell the home to make the balloon payment.

This makes the 30-year fixed-rate home loan very different from an adjustable-rate mortgage (ARM). An adjustable loan, as its name suggests, has an interest rate that can change over time. But the 30-year fixed-rate mortgage remains true to its name, keeping the same interest rate (and the same monthly payment amount) through the entire repayment term.
The last thing any homeowner wants is to face the stress of being behind on their mortgage payment, or worse yet, to think about, and possibly lose the family home to foreclosure or unpaid property taxes. No one ever plans to or expects to lose their home to foreclosure. But by understanding how you can obtain assistance with making your mortgage payments, who and how to ask for help, and what to do, you can reduce your chances of this occurring. Communication and being pro-active is one of they keys. You should also know the foreclosure process inside and out, and understand what may lead up to it. That will place you in a better position to address and also recognize any potential problems that may impact your ability to pay every bill and make every mortgage payment on time.

When you apply for a mortgage, you'll need to document your income, employment situation, identity, and more, so it can be a good idea to start gathering the necessary documentation before you walk into a lender's office. This isn't an exhaustive list, but you should locate your last couple of tax returns, bank and brokerage statements, pay stubs, W-2s, driver's license, Social Security card, marriage license (if applicable), and contact numbers for your employer's HR department. Here's a more comprehensive list that can help you determine what you'll need.
If you’re interested in refinancing to take advantage of lower mortgage rates, but are afraid you won’t qualify because your home value has decreased, you may want to ask if you qualify for the Home Affordable Refinance Program (HARP) or the HOPE for Homeowners (H4H) program. For more information, visit the U.S. Department of Housing and Urban Development.
You should know where your credit score stands before you start looking for a home or begin the mortgage process. Even if you think you have perfect credit, there may be issues or mistakes on your credit report that you are not aware of. A mistake on your credit report can seriously cost you in the long run. If your credit is less than perfect, you can work to build up your credit and hold off on buying a home until your credit has improved, or you can apply for an FHA loan. FHA-insured loans are less risky for lenders, allowing them to offer more lenient qualification standards. Because FHA loan programs offer easier qualifying guidelines than many other loan types, they can be a good option for borrowers who have poor credit.
Coming up with a down payment can be the one of the biggest obstacles for first-time homebuyers. It can be challenging to save for a down payment, even if you have a steady income and decent credit score. But with the right planning and budgeting, you can reach your savings goals faster than you think. If you aren’t able to make a sizable down payment, another option is to use gift funds from a relative. As long as the borrower has 5% of their own money, gift funds can be used for the rest of the down payment. It’s also a good idea to talk to your lender to see if you qualify for down-payment assistance. Knowing what your options are and how much you will need to save before you start the process will help prevent any surprises along the way.

For decades, the only type of mortgage available was a fixed-interest loan repaid over 30 years. It offers the stability of regular -- and relatively low -- monthly payments. In the 1980s came adjustable rate mortgages (ARMs), loans with an even lower initial interest rate that adjusts or “resets” every year for the life of the mortgage. At the peak of the recent housing boom, when lenders were trying to squeeze even unqualified borrowers into a mortgage, they began offering “creative” ARMs with shorter reset periods, tantalizingly low “teaser” rates and no limits on rate increases.
Note: If you pay half your house payment every two weeks instead of one monthly payment, you’ll end up saving money on your loan. You’ll wind up paying 26 payments per year, one more payment annually than if you just paid monthly. The re-amortized loan will eventually result in more of the payment paid on principal and less on interest. The extra payments go to pay down the principal on the loan.
Example – A $200,000 five-to-one-year adjustable-rate mortgage for 30 years (360 monthly payments) starts with an annual interest rate of 4% for five years, and then the rate is allowed to change by .25% every year. This ARM has an interest cap of 12%. Payment amount for months one through 60 is $955 each. Payment for 61 through 72 is $980. Payment for 73 through 84 is $1,005. (Taxes, insurance and escrow are additional and not included in these figures.) You can calculate your costs online for an ARM.

If you have a credit card with a $20,000 limit, that doesn't necessarily mean that you should spend $20,000 on purchases with the card. The same logic is true when it comes to mortgages -- just because you can qualify for a certain mortgage amount doesn't mean that you have to max out your budget. Be sure that your new mortgage payment not only fits your bank's standards but your budget as well.


Grants are awarded through a rather competitive application process. The applications themselves are quite complex and failing to answer any question could result in a denial. The good news is that there is literally millions of dollars in grant money made available each year. Many grants are offered only to minorities or to applicants meeting certain qualifications, such as earning a low income. These restrictions reduce the number of applications, meaning that there is less competition for the award. There is also no limit to the number of times an applicant can apply for a grant, which even further increases the odds of receiving the offered funds.
The internet is filled with “discount” mortgage financing options with great rates, but often they are not able to quickly close your mortgage or offer you the level of service you need. On the other end of the spectrum you have the large, national mortgage companies that purport to offer both great service and value but in reality are not able to give you a competitive rate, and the service is not on the level you might receive from a local company.
Once you’ve been keeping regular tabs on your credit report, you’ll be able to see how you’re doing. Dispute any inaccuracies with the 3 credit bureaus and get everything cleared up. If your debt-to-credit ratio is too high, monitoring your score over time will show you how your score might change. If you see accounts that you didn’t open or addresses that aren’t yours, take immediate steps to investigate what could be identity fraud.
Mortgage term. A mortgage term is the length of time used to calculate your payments. If you take out a 30-year mortgage, your monthly payments are calculated by amortizing the loan over 30 years, aka 360 months. At the end of the mortgage term, your home will be paid off unless you have a balloon mortgage. For a balloon mortgage, payments are generally calculated over a 30-year term, but have a maturity date of three to 10 years. On the maturity date, the balloon payment (remaining principal balance on the loan) is due. In most cases, homeowners refinance or sell the home to make the balloon payment.
To be clear, you don't need a pre-approval to start looking at houses. However, since a pre-approval is essentially the same as a full mortgage approval, just without a specific home in mind, it can be an extremely valuable shopping tool. Specifically, if you submit a pre-approval along with your offer, it tells the seller that you're a serious buyer who is not likely to run into trouble when obtaining financing. One caveat: A pre-approval and pre-qualification are two different things. A pre-qualification is based solely on information you provide and is not a commitment to lend money, therefore it doesn't carry nearly as much weight.

The good news for today’s FHA borrowers is that roughly 3,000 zip codes got a 7-percent hike in FHA loan limits this year. Now homebuyers can borrow up to $314,827, an increase from last year’s $294,515. In more costly areas, loan limits rose to $726,525 from $679,650. These higher limits offer buyers access to a bigger piece of the market, especially as home prices continue to climb upwards.
On the whole, the lowest interest rates are available to borrowers who have large deposits, or in the case of those remortgaging, significant equity in their property. Typically, you’ll need at a deposit of at least 40% to be eligible for one of the best rates. If you have only 10%, there are mortgages available but you’ll probably pay a higher rate.
Don't forget miscellaneous expenses. Be sure to budget for moving expenses and additional maintenance costs. Newer homes tend to need less maintenance than older ones, but all homes require upkeep. If you're considering a condo or a home with a homeowners association (HOA), remember to include HOA dues in your budget. Keep in mind that you should have an emergency fund on hand to prepare for any unexpected changes in your income (like reduction in your wages) or unexpected expenses (like medical bills).

Typically forbearance agreements have a deadline, after which the holder is expected to begin paying the monthly mortgage again, in full. In this regard, they are a sort of band-aid fix - great for emergencies, but no good if you expect that the emergency situation is going to become permanent. Once the forbearance period has expired, you have three courses of action:

A grant is an award of money that does not need to be repaid. Grants are typically provided by non-profit organizations, housing agencies, state governments, and the federal government. Awarded funds are only usable for the purpose for which they were offered and most agencies require recipients to submit periodic updates demonstrating how the funds were used to ensure that they were not misappropriated.
When working out the terms of your mortgage loan, it is important to understand all aspects of the loan, including your interest rates, amortization schedule, and payment terms (such as, for example, whether you can prepay extra principal payments on your mortgage if your budget allows). Pay attention to detail, as what may seem like slight adjustments can actually have a big impact on the amount you end up paying.

Why would anyone get a loan with a prepayment penalty? Some lenders offer very low (and therefore tempting) interest rates in exchange. Also, some borrowers agree to loans with penalties if they have bad credit and it’s the only way they can get the loan. Mostly, a prepayment penalty is a financial decision. There are situations where accepting a prepayment penalty on a loan can save you thousands of dollars in interest.
Why would anyone get a loan with a prepayment penalty? Some lenders offer very low (and therefore tempting) interest rates in exchange. Also, some borrowers agree to loans with penalties if they have bad credit and it’s the only way they can get the loan. Mostly, a prepayment penalty is a financial decision. There are situations where accepting a prepayment penalty on a loan can save you thousands of dollars in interest.
The United Way's 2-1-1 hotline connects people with local assistance programs. By dialing 2-1-1, you can receive referrals to organizations that help with food, housing, employment, health care, prescriptions and more. If you are a struggling homeowner, the United Way can help you find a foreclosure prevention counselor and refer you to available mortgage assistance programs. Trained specialists take calls day or night. The United Way may also provide emergency financial assistance to households in danger of losing their homes. Programs vary among locations.
“Now is the time to start the process. More than 75 percent of credit reports are said to have some incorrect data. Often a difference of two points in your credit score can make a drastic difference in your interest rate and/or loan fees. Making sure you are prepared from a credit standpoint is the most important part of the process. Secondly, make sure you are staying current on all your liabilities. And lastly, when you sit down with us, you will know you are with an industry leader in Movement Mortgage. We love and value people here at Movement.  It shows in how we take care of you while guiding you through the process.”–Bodie Shepherd, Market Leader, Chico, CA
Find out more about additional programs and options now being offered by JP Morgan Chase. The lender is continually creating new resources for those who need help. These programs are providing homeowners several additional options for mortgage delinquency counseling as well as foreclosure assistance. The bank is doing its best to help customers of all ages, backgrounds, and income levels, and they want to prevent as many foreclosure as possible. Find additional foreclosure and mortgage assistance from JP Morgan for housing issues.
×