What are home equity loans, home equity lines of credit, and home equity all about and what is the deal with home equity refinance? The following article will help you answer all of these questions.
For starters, equity is the difference between the money owed on your property and how much your property is worth. For instance, if $130,000 is the price you can sell your home for and you owe $40,000 against its mortgage, $90,000 is the total amount of equity the property has accrued.
A home equity loan is simply a loan taken out based on this $90,000 figure. This loan is a one time lump sum paid off over a couple of months, similar to a mortgage.
A home equity line of credit can be compared to how credit cards work. With this type of credit, you borrow a dollar amount, use it, and pay back your creditor just like that AMEX card in your wallet. For instance, let’s say your line of credit is $5000. $1000 goes towards a down payment on a car, and then monthly payments are made on that $1000. Although monthly payments are going directly towards that $1000, another $500 can be borrowed against your $5000 line of credit which would allow you to keep making payments on the final amount that you borrowed from the $5000.
When you file an application for this type of loan, your home is used as collateral. This means your house would be given up in case of defaulted payments. If your debt is not repaid, the lender can take away your asset legally which means your home, which is used to sell to recover the remainder of the debt.
A home equity refinance is also recommended in some cases. If your original home equity loan was doused with an outrageous interest rate, refinancing the loan allows you to save money every month. If monthly payments are becoming harder by the day, refinancing can change that. All it takes is an inquiry with your lender along with an explanation that will blaze the path towards a new home equity loan.

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Choosing a home loan consultant.
Repayment of a mortgage is an endurance sport. There are many strategies that can help you to win (that is, pay less interest). A good mortgage consultant (courtier hypothecaire) is an important asset who is able to help you get a good mortgage with the perfect mortgage strategy that will help you year after year so that you can pay off your mortgage more quickly without changing your lifestyle.
Finding a good counselor is easier than you may realize. It’s a little like hiring an employee to work for you. Like a long term employee, your mortgage expert will be there to help you, even if you plan to pay off your mortgage in 15 or 25 years - courtier hypothecaire.
Here are certain factors to consider that will help you to find a good mortgage consultant:
Three kinds of mortgage counselors
Working with each type of home loan counselor has advantages and disadvantages:
• Representative of the bank branch: Only has lending products, has many jobs in addition to home lending, is salaried with a possibility of an annual bonus.
Traditionally, it is the branch representative of the bank who acts like a mortgage consultant. They are the only ones with the right to submit a mortgage application for their clients. The world of mortgage lending has changed and almost all lenders offer mortgage products through mortgage brokers or, in certain cases, mortgage marketing agents.
• Mortgage marketing agents: Offer loan products only, and specialize in home loans. Is paid for the most part by commission (paid by the bank or lending institution - courtier hypothécaire.
To better serve their clients, financial institutions have started to hire local representatives. Mortgage marketing agents travel to their clients but work principally for a bank or lender. Like mortgage brokers, they receive a commission on the amount of the loan their client gets.
• Mortgage brokers: Offer the products of many lenders and specialize in home loans. They work only on commission (paid by the lender).
Mortgage brokers have existed for thirty years, but have only become a major factor in the mortgage market over the last few years. Mortgage brokers (courtier hypothécaire) work closely with many lenders (more than 30) in order to offer the best solution to their clients. Today, there are more than 12,000 mortgage brokers in Canada who represent 27% of the market.
Factors to consider when choosing a mortgage consultant
You have to choose a mortgage counselor that you will have confidence in. Two factors will help the client to gain confidence in him:
• Integrity: Will this mortgage counselor (courtier hypothécaire) have only my interests to consider, or will he have to get the best deal for the bank? When a home loan is negotiated, each side wants something different: the bank wants to earn more money and the borrower wants to spend less. A mortgage consultant who is trying to earn money for his employer may not want to get the lowest interest rate for his client.
• Expertise: Does your mortgage consultant (courtier hypothecaire) have the ability to offer the best solutions? Your mortgage broker should have the ability to compare all of the different mortgage products for you and find the best one for you.
These two factors, integrity and expertise, will be the most critical factors in choosing a mortgage consultant - courtier hypothecaire. Look at these examples:
• Someone may be a very good used car salesman and has the right expertise to sell you a used car. Does that mean you have confidence in him? Maybe, maybe not.
• You may have the best auto mechanic in the world but just because he works with motors and mechanics of a car, does that mean he can repair anything for you, like your T.V. or your plumbing? No, he does not have the expertise in those fields.
Choose well.
Confidence is sometimes just a feeling you have about a person. It lies in the fact that you think that this person show integrity and has a certain expertise. If you find the right person to be your mortgage counselor (courtier hypothecaire), you have probably locateda professional who will be able to help you for many years.

Gregory is an Accredited Mortgage Professional (AMP) in Canada. To have more information on Mortgage Broker - Courtier hypothecaire please visit: Hypotheque | Mortgage


Reverse Mortgage a good idea for seniors
I will submit this to one of the article places after you let me know what to change. I kind of just ended it so if you could think of something to put at the end that could be good. Every time I finish one of these things it sounds like a really bad infomercial lately.
So you have reached the age of 62 and your retirement funds went a lot quicker than you thought. There are some great options and some not so great options that you can take to remedy your situation. You could always go back and get a job, but at the age of 62 that probably doesn't seem too appealing. However, you may qualify for another option - a reverse mortgage.
A reverse mortgage is an excellent choice for a financially-strapped senior who has long since paid off their home or will be staying in their home for many years. There are three main types of reverse mortgages with each one having its positive and negative attributes.
The three types of reverse mortgages include the single-purpose reverse mortgage, the federally insured reverse mortgage, and the proprietary reverse mortgage.
The single-purpose mortgage has the benefit of possessing very low costs but are not available everywhere. These loans are also good for one purpose which can include a home repair, home improvement, or for property taxes. There are also strict qualifications and guidelines for a single-purpose mortgage which stipulate that you be in the low-to-moderate income bracket.
A federally insured reverse mortgage and proprietary reverse mortgage are more costly in terms of time spent and costs up front. These programs also become more expensive if you only stay in your home for a short time. You can use these mortgages on anything you want and there are also no medical or income qualifications to meet.
As for your time, in order to obtain a federally insured reverse mortgage (including a Home Equity Conversion Mortgages or proprietary reverse mortgage), you must first meet with a federally qualified and approved counselor to go over many points about the process. The counselor goes over loan costs, financial implications, the alternatives and other programs you may qualify for as well.
The amount of the loan that you will receive depends on your age, which type of loan you receive, the value of the home, current interest rates, and where you are located in the country. A general rule of thumb is the older you are the more valuable your home will be. Also, the less you owe on your home the more money you will be eligible to receive.
Ironically, there are also three ways you can receive payments from your reverse mortgage. You can receive the payment as a fixed monthly rate for a specific period of time or however long you live there. You may also get payment in the form of a credit line. You would draw proceeds from your home at any time and at any value. The third way is to receive payment in the form of a combination of the two previous options.
Home Equity Conversion Mortgages have a larger loan advance at a lower total cost when compared to a proprietary reverse mortgage. The higher valued homes will actual receive more money over all with a proprietary reverse mortgage as compared to a Home Equity Conversion Mortgages. If your home has a higher appraised value with a smaller mortgage then you would be able to qualify for larger funds with a proprietary reverse mortgage.
A reverse mortgage is a great option for financially strapped seniors or for any senior looking to free themselves of any financial burdens. Check out more information on reverse mortgages by visiting the Mortgage Loan Place.