Home Equity Loan Refinance Credit

Reverse mortgages harder to get. Is one right for you?

"We lost $175,000 in the stock market, and with income from our investments reduced, we said, 'OK, let's do something,' " Mr. Watson says. "Now with this amount of money, we're set for life."

Reverse mortgages let people age 62 and older convert home equity to cash without making monthly payments. They're attracting fresh attention as new options – and new warnings – emerge, and as the number of reverse mortgages falls for the first time in years. Debate now centers on whether the product is a versatile tool to help seniors of various means – or only an option of last resort.

With a reverse mortgage, a homeowner receives a lump sum, an equity line of credit, or a monthly payment in exchange for equity in the property. Unlike with a home equity loan, the reverse mortgage borrower makes no payments until the property changes hands. When the owner dies or sells, the lender collects proceeds from the sale. Between 550,000 and 600,000 households in the United States have reverse mortgages through private- sector companies, according to the National Reverse Mortgage Lenders Association (NRMLA) , an industry trade group.

The loan agreements can be complex, and options are expanding. Example: Homeowners may now choose a fixed rate rather than an adjustable rate, but the fixed rate applies only if they take their full loan amounts as a lump sum cash payment.

Another new option, termed a "saver" reverse mortgage, cuts upfront mortgage insurance premiums. By taking advantage of the saver, Watson paid $55 instead of $11,000 for mortgage insurance on his $550,000 home. Here again, though, there's a catch: The maximum amount one can borrow with a saver is 10 to 18 percent less than what's available through a standard reverse mortgage.

Many seniors welcome the prospect of breaking free from a monthly mortgage payment. A reverse mortgage can be a helpful tool for some of them, but they need to know the long-term consequences of using it, according to Barbara Stucki , vice president for home equity initiatives at the National Council on Aging , a nonprofit advocacy group based in Washington, D.C.

"People may have a false sense of security that somehow the mortgage is handled" with no payments due, Ms. Stucki says. "And it is – for today. But they're paying interest on that potentially large lump, and that [interest] is drawing down their equity. When it comes time for them to move, they may find there's nothing left.

Home Equity Loan Rates | Mortgage Rates: 30 ... - refinance loan info

The near future direction of mortgage rates will depend on Ben Bernanke’s comments on the economy and any action the Fed plans to take to take a slowing economy. The average contract rate on 15 year mortgage loans remained unchanged at 3.67%. Average mortgage points on 15 year loans also remained unchanged at 1.06 points.

Following is a more in-depth mortgage rates and refinance ratesreport released by MonitorBankRates.com on Monday: The current refinancing rate and mortgage rate on 1 year adjustable rates are averaging 2.95%, no changefrom last week’s average 1 year adjustable home mortgage refi rate and loan rate.

Today’s 3 year adjustable mortgage refinance rates and adjustable mortgage rates are averaging 3.09%,down from last week’s average 3 year adjustable mortgage rate of 3.29%.

Refinance rates and mortgage rates today on 5 year adjustable mortgages are averaging 3.40%,up from the prior week’s average rate of 3.03%.

Refinance mortgage rates and mortgage rates currentlyon 7 year adjustable home loans are averaging 3.37%,up from the previous week’s average 7 year loan rate of 3.31%.

10 year adjustable mortgage loan rates are averaging 3.90% this week,up from last week’s average 10 year adjustable rate of3.83%. Current mortgage refinance rates on 10 year home loans are also averaging 3.90%. 1 year jumbo adjustable loan rates are averaging4.05%,unchanged from the prior week’s average 1 year jumbo adjustable loan interest rate. Refinance rates on 1 year jumbo mortgageloans are also averaging 4.05%.

3 year adjustable jumbo rates are averaging higher at3.82%,down from last week’s average 3 year jumbo adjustable rate of3.89%. Today’s refinance interest rates on 3 year jumbo loans are also lower, averaging 3.82%.

5 year adjustable jumbo rates today are averaging 3.40%, an increase from last week’s average jumbo adjustable rate of 3.30%. Today’s refinancing mortgage interest rates are also averaging 3.40%.

Current 7 year jumbo adjustable loan rates are averaging3.37%, down from last week’s average 7 year adjustable home loan rate of 3.91%. 7 year jumbo refinance loan rates are alsolower at3.37%.

10 year jumbo loan rates are averaging3.90%,down from the prior week’s average 10 year jumbo home loan rate of4.36%. 10 year jumbo refinance interest rates are also lower, averaging3.90%.

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