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What is Reverse Mortgage A  reverse mortgage  could be an excellent way to supplement your retirement income. Let us first understand how the reverse mortgage works. First, think of how your home mortgage works as you make monthly payments, the amount of equity in your home increases. This equity is the money that is tied o the value of your home. A reverse mortgage allows you to borrow that money in payments made back to you. As you receive cash payments, the equity in your home decreases gradually. Also, the loan balance slowly increases over time. The reverse mortgage is repaid if the homeowners or the borrowers leave the house. A reverse mortgage allows you to access the cash in your home while you still live in it. How Does Reverse Mortgage Work (Rules) There are some  rules for reverse mortgages . The borrowers must be at least 62 years old. The property in question must be your primary residence. You must own your home and have substantia...

It’s a no brainer that whenever you are getting a mortgage or refinancing done, you would always make sure that you get the  best deal . However, most of the time, people do not have an idea of  how to shop for the best mortgage rate . Today we will understand how to shop for the best mortgage rates and how could it benefit you. Common Mistake while Shopping for  Best Mortgage Rates When people are in the process of  refinancing  or  buying a new home , a prevalent mistake they make is getting a quote from different lenders on different days. For example, if you are getting a quote from lender A on Monday and Lender B on a Wednesday, this would end up in inaccurate  comparison as the mortgage rates  fluctuate daily. It could be possible that lender A gave you a rate when the rates were high on Monday and lender B gave you the rate when the rates were low on Wednesday. Know Your Scenario It is critical to understand your scena...

Understanding  Debt To Income Ratio for Mortgage  (DTI) The  Debt to Income ratio for a mortgage  is one of the most important things when applying for a mortgage after credit score and loan to value ratio. Understanding debt to income ratio is significant as it would help you to know how lenders qualify a borrower based on  DTI . Today we will learn the phenomenon of DTI and understand the math behind it. The Term DTI Mostly, your DTI is going to compare what you owe and what you make every month. It is going to take the amount of money you pay towards your debts every single month and divide that by how much you make every month. You may have debts like credit cards, student loans, car loan, and any other personal loans. You may or may not have more than one source of income. If you are employed your paycheck is your primary source of income which you get may bi-weekly or monthly, depending on the terms of the organization you work with. T...