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Wednesday, January 21, 2009
In July George Bush signed the big housing bill with provisions to for two important reverse mortgage changes.
The one most people were concerned about was FHA increasing its its national loan limits up to four hundred seventeen thousand dollars. The other, less known change, was a reduction in lender fees.
Here is how it works; the origination fee is two percent of the value of the home up to $200,000. For values above 200k and up to 417k the fee increases by 1%.
Let's use a $300,000 valued house. The orgination fee for th first $200,000 will be as much as $4,000. For the additional $100,000 in value it can be as much as $1,000. The maximum origination is $5,000.
Before the law was changed the lender could charge 2% regardless of value, up to the FHA limit.
What does AARP really expect of the lender? Should the lender price itself to point where the owner should take a second job? It sounds like it.
Origination fees are how lenders make money. Don't forget you have to pay all your expenses prior to actually going home at the end of the month with any money in your wallet.
Furthermore, traditional mortgage origination fees are no less expensive if you examine them closely.
People see a forward mortgage and say, "Hey, you reverse guys sometimes charge twice that". The reason is forward mortgages build in the difference into the interest rate in what is known as a service release premium.
Although reverse mortgages have SRPs they are very small, which is why the higher origination fee must be charged.
Is it possible that AARP is just putting on a good face to keep up appearances for their senior contituency?
Afterall, they do have a growing senior population to sell insurance to. Do they ask their client insurance companies to take a hit like they mortgage companies?
Oh, don't think so. Insurance commission is the number one money maker for AARP. It's a money train.
AARP is a useful informative of company, but they are off the mark this time.
The one most people were concerned about was FHA increasing its its national loan limits up to four hundred seventeen thousand dollars. The other, less known change, was a reduction in lender fees.
Here is how it works; the origination fee is two percent of the value of the home up to $200,000. For values above 200k and up to 417k the fee increases by 1%.
Let's use a $300,000 valued house. The orgination fee for th first $200,000 will be as much as $4,000. For the additional $100,000 in value it can be as much as $1,000. The maximum origination is $5,000.
Before the law was changed the lender could charge 2% regardless of value, up to the FHA limit.
What does AARP really expect of the lender? Should the lender price itself to point where the owner should take a second job? It sounds like it.
Origination fees are how lenders make money. Don't forget you have to pay all your expenses prior to actually going home at the end of the month with any money in your wallet.
Furthermore, traditional mortgage origination fees are no less expensive if you examine them closely.
People see a forward mortgage and say, "Hey, you reverse guys sometimes charge twice that". The reason is forward mortgages build in the difference into the interest rate in what is known as a service release premium.
Although reverse mortgages have SRPs they are very small, which is why the higher origination fee must be charged.
Is it possible that AARP is just putting on a good face to keep up appearances for their senior contituency?
Afterall, they do have a growing senior population to sell insurance to. Do they ask their client insurance companies to take a hit like they mortgage companies?
Oh, don't think so. Insurance commission is the number one money maker for AARP. It's a money train.
AARP is a useful informative of company, but they are off the mark this time.
posted by Credit Counseling at
8:28 PM
0 Comments
With the incredible proliferation of ID theft, there have been several companies that have been formed with the distinct objective of making it easy for you to fight back. These identity theft protection services essentially lock down your credit report so that you are contacted whenever a new credit account is opened in your name. These companies also check multiple sources to see if thieves are using your personal information.
If you need identity theft protection, then you really need to take a look at the leading company, TrustedID. With personal plans costing just $10 per month, TrustedID gives you the most comprehensive protection from identity theft of any of its competitors.
TrustedID puts fraud alerts in your name with the major credit bureaus, which causes you to be notified before any new accounts can be opened in your name. This gives you the ultimate authority over new credit being opened using your personal identity.
TrustedID also gives you with yearly credit reports from all three major credit bureaus, so that you can check to see that your credit reports are showing the correct information. Making sure your credit reports reflect accurate information is an important step in keeping your good credit.
When you add in their constant monitoring of the underground trading market and other sources to make sure your person data is not being traded amongst thieves, TrustedID is a great identity theft prevention service. You will be notified the instant any unauthorized activity is detected, allowing for you to keep tight control over your identity.
With their customer service being available during all hours of every day, and with a household plan for less than $16 per month that provides identity theft protection for everyone in you house, TrustedID is a great identity theft solution. With a risk-free 30-day trial, there is enough time to see if TrustedID is the best choice for you.
TrustedID is not the only service that protects your identity, but they are one of the best. When looking at other solutions, pay attention to the number of features offered, as most competitors cannot match TrustedID's level of service.
You need to make sure your identity is protected by using an identity theft prevention solution. For a nominal monthly fee, you will have great piece of mind in knowing your identity is protected. Don't become identity theft's next victim - protect your identity today!
If you need identity theft protection, then you really need to take a look at the leading company, TrustedID. With personal plans costing just $10 per month, TrustedID gives you the most comprehensive protection from identity theft of any of its competitors.
TrustedID puts fraud alerts in your name with the major credit bureaus, which causes you to be notified before any new accounts can be opened in your name. This gives you the ultimate authority over new credit being opened using your personal identity.
TrustedID also gives you with yearly credit reports from all three major credit bureaus, so that you can check to see that your credit reports are showing the correct information. Making sure your credit reports reflect accurate information is an important step in keeping your good credit.
When you add in their constant monitoring of the underground trading market and other sources to make sure your person data is not being traded amongst thieves, TrustedID is a great identity theft prevention service. You will be notified the instant any unauthorized activity is detected, allowing for you to keep tight control over your identity.
With their customer service being available during all hours of every day, and with a household plan for less than $16 per month that provides identity theft protection for everyone in you house, TrustedID is a great identity theft solution. With a risk-free 30-day trial, there is enough time to see if TrustedID is the best choice for you.
TrustedID is not the only service that protects your identity, but they are one of the best. When looking at other solutions, pay attention to the number of features offered, as most competitors cannot match TrustedID's level of service.
You need to make sure your identity is protected by using an identity theft prevention solution. For a nominal monthly fee, you will have great piece of mind in knowing your identity is protected. Don't become identity theft's next victim - protect your identity today!
About the Author:
Author Harvey Warmuth thinks you should be protecting your good name and use a credit identity theft service. Learn how to get a free, 30-day trial of the TrustedID service by visiting his website: Trusted ID
posted by Credit Counseling at
12:26 PM
0 Comments
Becoming a victim of identity theft is something that you should be aware of these days. With the occurrence of identity theft on the rise, each day that passes increases the possibility that you might become a victim of this crime.
By using common sense and some basic precautions, you can do your part to make sure that you identity is never stolen. However, there is only so much you can do on your own, so you might want to look into making use of an identity theft protection solution.
When you use LifeLock, fraud alerts are placed on your credit bureau reports, with the main agencies. You are then contacted prior to any new accounts being opened in your name. By doing so, you have the final say over what accounts are opened using your personal information, thus greatly reducing fraudulent use of your information.
LifeLock also continually checks sources, such as the Internet, for suspicious activity regarding your personal data. Identity thieves often trade personal information to make money. Because they monitor the normal places were such activities take place, LifeLock is proactive when it comes to stolen identity protection.
And because they offer a $1 Million Total Service Guarantee, LifeLock is really standing behind the fact that they can protect you from identity theft. If your identity was to be stolen while you subscribe to LifeLocks service, they pay up to $1 Million to fight your identity theft. This is definitely a comfort to have such a company supporting you when it comes to identity theft protection.
LifeLock only offers coverage for individuals and children. They do not currently offer a whole family solution. If you absolutely need this kind of coverage, there are competitors that offer it.
LifeLock offers one of the most comprehensive identity protection solutions currently available. It will be hard to find a solution that offers better coverage for what LifeLock currently offers from just $9 per month.
Make today the day you start using LifeLock to protect your identity. Since identity theft crimes are on the rise, you need the best protection currently available. LifeLock is a great choice and they offer incredible protection for a very small price.
By using common sense and some basic precautions, you can do your part to make sure that you identity is never stolen. However, there is only so much you can do on your own, so you might want to look into making use of an identity theft protection solution.
When you use LifeLock, fraud alerts are placed on your credit bureau reports, with the main agencies. You are then contacted prior to any new accounts being opened in your name. By doing so, you have the final say over what accounts are opened using your personal information, thus greatly reducing fraudulent use of your information.
LifeLock also continually checks sources, such as the Internet, for suspicious activity regarding your personal data. Identity thieves often trade personal information to make money. Because they monitor the normal places were such activities take place, LifeLock is proactive when it comes to stolen identity protection.
And because they offer a $1 Million Total Service Guarantee, LifeLock is really standing behind the fact that they can protect you from identity theft. If your identity was to be stolen while you subscribe to LifeLocks service, they pay up to $1 Million to fight your identity theft. This is definitely a comfort to have such a company supporting you when it comes to identity theft protection.
LifeLock only offers coverage for individuals and children. They do not currently offer a whole family solution. If you absolutely need this kind of coverage, there are competitors that offer it.
LifeLock offers one of the most comprehensive identity protection solutions currently available. It will be hard to find a solution that offers better coverage for what LifeLock currently offers from just $9 per month.
Make today the day you start using LifeLock to protect your identity. Since identity theft crimes are on the rise, you need the best protection currently available. LifeLock is a great choice and they offer incredible protection for a very small price.
About the Author:
Harvey Warmuth is a believer that you should be doing all they can to protect against identity theft. Visit his website to find out more information: LifeLock reviews
posted by Credit Counseling at
9:29 AM
0 Comments
