June 29, 2015

What happens to reverse mortgage after parent's death

By Marcie Geffner - Bankrate

As more seniors turn to reverse mortgages, their adult children might well be puzzled or concerned about what will happen to that debt when one or both of their parents eventually dies. At that time, questions about how to pay off the loan will need to be resolved -- and relatively quickly.

Nearly all reverse mortgages today are home equity conversion mortgages, or HECMs, which are insured by the Federal Housing Administration. HECMs are subject to certain rules that might not apply to non-HECMs.

The first thing adult children should know about HECMs is that these reverse mortgages technically become due and payable when the borrower dies.

Read on:
http://www.bankrate.com/finance/mortgages/pay-reverse-mortgage-after-parent-dies.aspx

June 18, 2015

6 Ways People Destroy Their Credit

By Marcie Geffner - LendingTree.com

Everyone wants good credit. Without it, you’ll pay higher interest rates and have a harder time getting credit cards, car loans, mortgages and other types of financing.

Despite the advantages of good credit, plenty of people do things—whether knowingly or not—that damage their credit rating.

Here are six ways to wreck your credit:

Read on: http://blog.lendingtree.com/2015/06/18/financial-disaster-the-top-6-things-people-do-to-destroy-their-credit/

June 16, 2015

Will Your Car Loan Outlast Your Car?

By Marcie Geffner - LendingTree

Some financial experts say long-term car loans are a bad deal. But the fact is that a longer term loan can help make a new car more affordable for you or enable you to purchase a nicer, more expensive car that you need.

How long is long?

In a CNBC video, financial guru Suze Orman says, “Any car loan greater than 36 months is a sign of financial irresponsibility.”

But many people have loans that are longer, in some cases a lot longer.

Read on:
http://blog.lendingtree.com/2015/06/16/will-your-car-loan-outlast-your-car/

June 15, 2015

How Your Tax Return Affects Your Mortgage

By Marcie Geffner - LendingTree

When you apply for a mortgage to buy a home or refinance an existing home loan, one of the most important documents you’ll have to give your lender is your federal income tax return.

Typically, you’ll have to provide a copy of your Form 1040, whether it’s the short Form 1040-EZ, medium Form 1040-A or long Form 1040, along with all the pages and schedules.

You’ll also have to sign a Form 4506-T, which allows the lender to get a copy of your tax return directly from the IRS. This allows the lender to make sure you didn’t dummy up a fake tax return and try to use it to commit mortgage fraud.

The lender will scrutinize your tax return, looking for information about your income and expenses and any irregularities that suggest you could be hiding material facts about your personal finances.

Read on:
http://blog.lendingtree.com/2015/06/15/5-ways-your-tax-return-affects-your-mortgage-application/

June 3, 2015

How To Get a Home Loan with Student Loans

By Marcie Geffner - Bankrate

It's no secret that student loans can make buying a home a challenge. But what exactly is the problem and how can buyers overcome it?

The problem is that student loans can be included in the buyer's debt-to-income ratio, or DTI.

This ratio is one factor lenders use to decide whether a buyer can afford a mortgage payment.

Generally, mortgage lenders prefer a debt-to-income ratio of 36 percent or less. In some situations, lenders will approve mortgages with higher debt-to-income ratios.

Read more:
http://www.bankrate.com/finance/mortgages/student-loan-debt-and-afford-mortgage.aspx