Home Mortgage Refinance Loans

With home mortgages in the headlines these days, homeowners and new home buyers are wary of mortgage lenders. Loose lending practices made it too easy for financially irresponsible individuals to get mortgage loans, leading to a recent increase in foreclosures and defaults. Understandably, homeowners and home buyers want to do business with a mortgage lender they can trust. Countrywide Mortgage is one of those lenders.

Company History

Countrywide Mortgage is neither a fly-by-night operation nor the new kid on the block when it comes to the mortgage lending business. Countrywide was founded in 1969, and its primary business has always been real estate finance.

Commitment To Diversity

Countrywide Mortgage is the number one minority lender in the U.S. Not only is Countrywide Mortgage committed to establishing and maintaining non-discriminatory lending practices to the Hispanic, Asian, and African American markets, but the company is also committed to building an ethnically diverse team of managers and other employees.

Commitment To Education

One way Countrywide Mortgage encourages responsible borrowing is through its Home Ownership Mortgage Education (H.O.M.E.) program. This is a five-step program available to any individual who want to know more about buying a home.

In step one, the customer learns all about basic principles of finance ? the fundamentals of money management, how to work with banks, and how to save money.

In step two, the customer learns all about credit: credit ratings, credit scores, bankruptcies, identity thefts, and the effect all of those items can have on getting a home loan.

In step three of Countrywide Mortgage’s H.O.M.E. program, the course gets down to the business at hand: buying a home. In this session, students learn how much of a down payment is required for different kinds of loans and what kinds of home loans are available. Step three covers the four Cs of Countrywide’s education program: capital, capacity, credit, and collateral.

Step three also includes information about “predatory lending,” a topic that covers a variety of abusive lending practices.

In step four of Countrywide Mortgage’s program, things really get moving. Students learn how to get pre-qualified and pre-approved for a home loan, how to shop for a home, and what to expect at closing.

In step five, the final step of the H.O.M.E. program, students learn how to secure their property with adequate insurance, how to make their mortgage payments, how to plan ahead to pay taxes and take care of regular home maintenance, and in general how to fulfill every home buyer’s obligation as a homeowner.

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When famous celebrities appear in television ads touting the financial benefits of reverse mortgages, they generally hint that they are the greatest thing since pockets on a shirt. However, they rarely discuss the disadvantages of a reverse mortgage and some of the pitfalls associated with these loans. While the prospect of receiving what amounts to a home equity loan without having to pay it back sounds good on paper, there are a couple things of which interested parties need to be aware.

Although the concept of reverse mortgages is not new, it was not fully embraced by the financial world until recently, and even then information was sketchy at best. Forgetting about the disadvantages of a reverse mortgage, the plan is actually quite simple. Persons over the age of 62 who own their home outright or have a very low loan balance can receive a reverse mortgage based on a percentage of the equity of their home. They can remain living in the home until they pass away or move out. At this time, the home is sold by the mortgage holder and the loan is repaid.

If the home sells for more than the loan amount due, the profit becomes part of the previous-owners estate or is given to the owners if they are still living. If the selling amount is less than the amount of the loan due, insurance provided by the Federal Housing Authority reimburses the lender. Before considering this type of loan, look at the disadvantages of a reverse mortgage.

Surviving Heirs May Be Disappointed

With many older families, they own their home and plan to leave the house, or at least the proceeds from its sale to their children. One of the disadvantages of a reverse mortgage is they money they receive will be deducted from the sale price of the home, essentially allowing them to spend their children’s inheritance. They can also the money from the loan in a lump sum payment, a fixed line of credit or in annuity payments.

Families will need to track the amount of money used in lines of credit and annuity payments so they know when they are getting closed to limit. One of the most often complained about disadvantages of a reverse mortgage, are the costs and fees associated with the mortgage. Many who have been interested in a reverse mortgage have changed their mind when they learn how much of their equity will go to paying for processing the loan.

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