Reverse Mortgages, Most Common Features:

A reverse mortgage is a special type of loan that seniors can sometimes get to convert the equity in their homes to cash.

Many reverse mortgages offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits.

Originally designed for retirees interested in keeping their homes but whose incomes aren’t sufficient to support them, reverse mortgages have typically been used to help people on low fixed incomes make ends meet, make needed home repairs or pay for large medical bills that otherwise would be unaffordable.

Depending on the plan, reverse mortgages generally allow homeowners to retain title to their homes until they permanently move, sell their home, die, or reach the end of a pre-selected loan term.

Generally, a move is considered permanent when the homeowner has not lived in the home for 12 consecutive months. So, for example, a person could live in a nursing home or other medical facility for up to 12 months before the reverse mortgage would be due.

However, be aware that:

Reverse mortgages tend to be more costly than traditional loans because they are rising-debt loans.

The interest is added to the principal loan balance each month. So, the total amount of interest owed increases significantly with time as the interest compounds.

Reverse mortgages use up all or some of the equity in a home. That leaves fewer assets for the homeowner and his or her heirs.

Lenders generally charge origination fees and closing costs; some charge servicing fees. How much is up to the lender.

Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.

Because homeowners retain title to their home, they remain responsible for taxes, insurance, fuel, maintenance, and other housing expenses.

Getting a Good Deal.

If you decide to consider a reverse mortgage, shop around and compare terms.

Look at the:

Annual percentage rate (APR), which is the yearly cost of credit. type of interest rate. Some plans provide for fixed rate interest; others involve adjustable rates that change over the loan term based on market conditions, number of points (fees paid to the lender for the loan) and other closing costs.

Some lenders may charge steep costs, which your lender may offer to finance. However, if you agree to this, you’ll take out fewer proceeds from the loan or you’ll borrow an extra amount, which will be added to your loan balance and you’ll owe more interest at the end of the loan. Total Amount Loan Cost (TALC) rates.

The TALC rate is the projected annual average cost of a reverse mortgage, including all itemized costs.

It shows what the single all-inclusive interest rate would be if the lender could charge only interest and no fees or other costs. payment terms, including acceleration clauses.

They state when the lender can declare the entire loan due immediately. Under the federal Truth in Lending Act, lenders must disclose these terms and other information before you sign the loan.

On plans with adjustable rates, they must provide specific information about the variable rate feature.

On plans with credit lines, they must inform the applicant about appraisal or credit report charges, attorney’s fees, or other costs associated with opening and using the account.

Be sure you understand these terms and costs.

Author-Bio: Debt elimination programs reviewed is run by Vincent Dail. Get the debt elimination tips you need, today! To receive your free special report visit: Debt Elimination Programs

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Raising Capital for Your Business

Rebecca

The National Association for the Self-Employed (NASE)

About NASE

At-A-Glance: The Nation’s Leading Resource for Micro-Businesses

The National Association for the Self-Employed (NASE) is the nation’s leading resource for the self-employed and micro-businesses (up to ten employees), providing a broad range of benefits and support to help the smallest businesses succeed.

The NASE was founded in 1981 by a group of small- business owners in search of a structure of day-to-day support, benefits and consolidated buying power that traditionally had been available only to large corporations. Today, the NASE represents hundreds of thousands of entrepreneurs and micro-businesses, and is the largest non-profit, non-partisan association of its kind in the United States.

Since its start-up, the NASE has been an important partner in the explosion of micro-businesses in the United States, supporting the interests of the self-employed with benefits and advocacy initiatives aimed at leveling the playing field between these businesses and larger corporations.

Specifically, the aim of the association is to help the self-employed successfully meet the challenges of managing and growing their businesses by:

* Securing focused tools and resources that help the self-employed manage and compete more effectively;
* Representing the interests of the self-employed among legislators in Washington D.C. on key issues that affect their business and that give these businesses more equal footing with larger corporations; and
* Providing access to benefits that promote the health and financial security of micro-business owners.

Supporting Micro-Businesses as Key Engine of Economy

The NASE has pioneered support for the self-employed and micro-businesses, which have been among the largest creators of jobs in recent years. According to the Small Business Administration, micro-businesses generated 37.6 percent of new jobs between 1998 and 1999.

Inside the site you can find:
How NASE Works
FAQ’s
History of NASE
Governance
Press Room
Latest News
Micro-Business Advice

You can visit this business resource here:
http://www.nase.org/

It is one thing to make a sales presentation, but it is another thing to make a sales presentation without first evaluating your customer. For all you know, you could be selling your customer something that they already have, or something they don t want, don t need, or can t afford.

This is why it is so very important to take your customer in, sit them down, make them feel comfortable, and get to know them and what their needs are. Once you have done this, you can then sell them a product based on what their needs are and not what you think they are.

On a personal note . . .

I learned the importance of evaluating your customer the hard way. A few years ago, I was a branch manager working in a bank branch. One particular customer of the bank approached me in my office about opening a savings account for her daughter.

Once I explained to her the process of opening a savings account, I proceeded to tell her all about a current promotion we were having on our home equity loans. She sat there and listened very politely and patiently as I very proudly went down the list of all the benefits, features, and tax breaks that come with a home equity loan.

Once I had finished my rehearsed presentation, she said to me;

That all sounds very nice, and it is something that I will consider in the near to distant future. She than went on to tell me that she and her husband rented the house they lived in.

So there you have it, I tried to sell a home equity loan to someone without a house.

Needless to say, my face turned a deeper shade of scarlet, and I felt like an idiot.

But hey, I learned from my mistake. Had I asked some simple probing questions before I went straight for the sale, I would have saved myself a lot of embarrassment.

You will be amazed at what you can find out from people just by asking them a few simple questions about themselves. Remember, people love to talk about themselves. Their jobs, their pets, their kids, just about everything.

I once had a friend who owned a shoe store, and his inventory was made up mostly of sneakers. One day a man walked into his store to buy a pair of sneakers. As my friend assisted him with his decision, he struck up a friendly conversation with him. As it turned out, this customer ran a basketball camp during the summer and he loved to talk about it. A few minutes into the conversation, my friend and his customer had come to an agreement. All of the boys and girls that attended the customers basketball camp would receive a 10% discount on their sneakers if they purchased them at my friend s store.

So, as you can see, my friend increased his sales that summer simply by striking up a conversation with his random customer and asking a few questions.
Imagine going to your doctors office with an ailment and having him prescribe you a medication without asking what your symptoms were. Would you take the medication?

The same principal applies.

It really isn t rocket science, it s just friendly conversation, get to know your customer and watch one sale turn into many.

Why service only one of your customers needs when you can service them all.

Author-Bio: Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry, both as a loan officer and a sales manager. He is the owner of http://www.jconners.com, a mortgage resource site.

Rebecca