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Understanding Loan To Value Ratio When you are  purchasing a home  or  refinancing  your current mortgage, you will come across a term called  loan to value ratio (LTV) . It is one of the crucial parameters when it comes to financing.  The lenders would look at this parameter as one of the significant qualifying components. Let’s break it down and understand this phenomenon from a lenders perspective. What is a loan to value ratio? LTV is a ratio to know how much money you are borrowing against the collateral. When you are purchasing a home or refinancing it, you will come across the term  LTV ratio  through your  loan officer . Other than your  credit score  and income, your loan officer will also consider Loan to value ratio to qualify your mortgage. For example:  if you are purchasing a home and you are willing to put a 20%  down payment , your LTV is 80%. For a typical  conventional lo...

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...

List of  Challenges  and  Tips If you are  new home buyers  and you are on that fence, it makes a lot of sense. Sometimes you get a lot of anxiety and concerns. Yes, it could be less confusing and easy if you know how to go about it. Today we will discuss the most common challenges faced by new home buyers and also understand how to get over these challenges. 1- Commitment Issues for New Home buyers When you are thinking of buying a home, especially the new home buyers, there is a lot of anxiety and fear, which could be called the fear of the unknown. The best way to replace fear is with knowledge. Because with knowledge comes power, and with power comes the comfort and confidence to make a well-informed decision. The reason why this is one of the biggest things across the country for the new home buyers as commitment issues is that a lot of home buyers feel nervous of making sense about 15 years or 30 years fixed-rate mortgage or ARM. ...