Find out what it means to sell your life insurance policy, how the process of selling it works and in which situations it could make sense to sell it.
Why Selling Your Life Insurance Policy Makes Good Financial Sense
When you look at your financial situation, you might be wondering, “Should I sell my life insurance?” Many people who purchased a life insurance policy during their young adult years are faced with this situation as they become senior citizens. At the time you purchased it, the life insurance policy likely provided you with peace of mind. Now, the insurance policy could be draining the money you need in hand. Understanding how the process works and in which cases it makes sense to sell the policy will help you to make an informed decision about your financial future.
The Process of how to Sell My Life Insurance Policy for Cash.
One of the first questions you might have is, “How does it work to sell my life insurance?” We have simplified the process to make things as easy and quick as possible. We provide you with information about our offers process, and you provide us with the details of your policy. After we receive the information about your life insurance policy in writing, we’ll verify its coverage amount, payment history and current value. We’ll then make you a cash offer. In many cases, we can have a cash offer ready for you in just a few days.
Financial Considerations for Selling Your Life Insurance
It is important to know how selling your policy could affect your finances. Receiving interest on your deposits might have income tax implications. Because your policy was paid with after-tax dollars, the principal of what you paid is not subject to any more taxes.
When to Consider Selling Your Life Insurance Policy
There are many situations in which selling your life insurance policy is a sound decision to make. If you don’t have enough money each month to pay for your essentials, then selling the insurance policy puts cash in your wallet and eliminates the monthly expense of the premium. The cash could also pay for home updates or repairs to your car.
Now that you have this information about how selling the policy works and how it will impact your finances, you can make a well-informed decision about how to proceed.
The adjustable rate mortgage is a type of loan which will be secured on a home which has an interest rate and monthly payment that will vary. The adjustable rate will transfer a portion of the interest rate from the creditor to the homeowner. The adjustable rate mortgage will often be used in situations where fixed rate loans are hard to acquire. While the borrower will be at an advantage if the interest rate falls, they will be at a disadvantage if it rises. In places like the United Kingdom, this is a very common type of mortgage, while it is not popular in other countries such as the United States of America according to Physician Mortgage Loans.
The adjustable rate mortgage is excellent for homeowners who only plan to live in their homes for about three years. The interest rate will typically be low for the first three to seven years, but will begin to fluctuate after this time. Like other mortgage options, this loan allows the homeowner to pay on the principle early, and they don’t have to worry about penalties. When payments are made on the principle, it will help lower the total amount of the loan, and will reduce the time that is necessary to pay it off. Many homeowners choose to pay off the entire loan once the interest rate drops to a very low level, and this is called refinancing.
One of the disadvantages to adjustable rate mortgages is that they are often sold to people who are not experienced in dealing with them. These individuals will not pay back the loans within three to seven years, and will be subjected to fluctuating interest rates, which often rise substantially. In the US, some of these cases are tried as predatory loans. There are a number of things consumers can do to protect themselves from rising interest rates. A maximum interest rate cap can be set which will only allow interest rates to rise at a specific amount each year, or the interest rate can be locked in for a specific period of time. This will give the homeowner time to increase their income so that they can make larger payments on the principle.
The primary advantage of this loan is that it lowers the cost of borrowing money for the first few years. Homeowners will save money on monthly payments, and it is excellent for those who plan on moving into a new home within the first seven years. However, there are risks to this type of mortgage that must be understood. If the owner has problems making payments, or runs into a financial emergency, the rates will eventually rise, and the owner who cannot make payments may lose their home. If you are in a position to buy a house without a mortgage, then it’s best to do what we do. That is we buy houses for cash.
One term that you will hear lenders talking about is caps. The cap can be defined as a clause that will set the highest change possible for the interest rate of the loan. Homeowners can set up a cap on their mortgage, but they will need to make a request from the lender, as the cap may not be present on the rate sheets that are presented.
The subprime mortgage crisis has been on the tip of everyone’s tongue the last decade, and the housing market has gotten hot again. Rather than being discouraged by this, smart investors realize that this is the time for deals to be had. We’re in a seller’s market, which is an enormous relief for seller’s who have watched the market balloon over the last decade. But what if you are one of the thousands of people who got caught up in the low-interest madness, thinking you’d be making enough money to cover the difference when your rates reset? Visit the Physician Mortgage Loans website to learn more about how to prevent foreclosure.
If you are facing difficulties with your loan, remember that the ultimate goal is to maintain your credit rating. You may be able to negotiate with your lender, you may be able to refinance or you may be forced to sell your home now in order to buy one in the future, but the sooner you address the issue the more options you will have. By getting your finances in order you will be able to get on with your life sooner. Don’t add to your stress by ignoring your fiscal situation; follow these steps to getting back on track:
Know the details – go over all your loan documents so that you are prepared for any upcoming resets or changes. When will your payments increase? By how much? Can you refinance? What kind of penalty would you face, if any? Cut in other areas – can you take a roommate or a second job to help make your payments? You may need to look at significant changes in your spending and lifestyle. Do not make any major purchases at this time, and look at liquidating other assets, such as cars or boats, to help meet your payments. You can receive a free foreclosure analysis at Physician Mortgage Loans.
Contact your lender – You should take the initiative with your lender. Contact them before the problem becomes overwhelming. If you receive calls or letters from your lender respond to them as soon as possible. Do not wait to get too far behind – lenders are less likely to move quickly into foreclosure if you are proactive. You want to speak to the right people – ask for the loss mitigation or collections department. Be honest with them about your situation and don’t make promises you can’t keep.
Beware of foreclosure “rescue” rackets – There are a number of scam artists targeting people in neighborhoods where foreclosure rates have been high. They approach troubled homeowners with promises to help them keep their houses. These “rescues” often come with payments that are out of reach of the average homeowner and result in homeowners being defrauded of their homes, sometimes still owing the original mortgage amount. Any company that approaches you with such an offer should be checked out through the Better Business Bureau, your state real estate commission and Attorney General. Do not sign anything without reading it all, get all promises in writing and ask your attorney or a financial professional to review any paperwork before you sign it.
Home ownership is just a mortgage away! To name a few, there are fixed rate mortgages rates and an adjustable rate mortgage.
Getting a house of your own is a lifetime achievement and a home mortgage helps you in achieving this milestone much earlier than it would otherwise have been possible. In fact, the first home mortgage is also filled with a lot of emotion. A home mortgage is really something that makes dreams come true. Physician Mortgage Loans has launched a new program for first time home buyers that will help increase home ownership.
So let us start with understanding what a home mortgage actually is?
A home mortgage is something that allows you to buy a house even if you do not have enough money to pay for it right away. This is made possible by borrowing money from someone and paying it back in monthly installments. The person who lends you money is called the home mortgage lender. The home mortgage lender lends you money for a specific period (up to 30 years) during which you are expected to pay back the money in monthly installments. There are certain terms and conditions associated with the home mortgage agreement and these terms and conditions govern the home mortgage throughout its tenure. Recently Physician Mortgage Loans has been offering 40 year mortgage loans to allow doctors to have lower payments and to be able to afford a more expensive home.
Among others, the most important thing is the interest rate that the home mortgage lender charges you. Interest charges are the means through which the mortgage lenders earns on this financial transaction called home mortgage. Most home mortgage lenders offer various home mortgage options. The most important variation in these alternative options is in terms of the interest rate and the calculations related to it. In fact, most home mortgage options are named after the type of interest rate used for that option. Broadly speaking, there are two types of home mortgage interest rates – FRM (fixed rate mortgage) and ARM (adjustable rate mortgage). For FRM, the interest rate is fixed for the entire tenure of the home mortgage loan. For ARM, as the name suggests the home mortgage rate changes or adjusts throughout the tenure of the home mortgage. This change or adjustment of mortgage rates is based on a pre-selected financial index like treasury security (and on the terms and conditions agreed between you and the mortgage lender). That is how mortgage works.
No matter what type of home mortgage you go for, you always need to pay back the entire home mortgage loan (with interest) to the mortgage lender. Failing to pay back the mortgage lender can result in foreclosure on your home and the mortgage lender can even auction it off to recover the remaining debt. To receive more advance or basic real estate investing advice, you should visit Capital Group and attend one of their real estate investing webinars.
Therefore, home mortgage is a wonderful means of getting into your dream home much earlier in your life. Without this concept, you would have to wait for a long time for getting into that dream home. Really, a home mortgage is one of the best concepts from the world of finance.
A Mortgage Secret for First-Time Buyers: It Can Pay To Buy More
It’s not easy to buy a first home, so here’s a suggestion that may be surprising: Instead of buying one residence, buy several. What I’m suggesting has nothing to do with late night infomercials, we buy houses for cash, or books that promise fast and easy wealth from real estate. Instead, many first-time buyers can benefit from an interesting quirk in the mortgage system.
When you hear people talk about “real estate financing” they generally divide mortgages into two categories; loans for owner-occupants and more expensive and tougher loans for investors according to the American Mortgage Association.
“Investment financing” is for buyers who do not physically reside at a property. “Owner-occupant” loans are for homes, the places where we stay at night, the phone rings and the car is parked.
But there’s a wrinkle:
Owner-occupant financing with little down and low rates is typically available for the purchase of more than a single-family house. Normally you can get owner-occupant financing for properties with one-to-four units as long as you use one as your prime residence. The American Mortgage Association has some of the most creative owner occupied mortgage loan programs.
In other words, your status as an owner-occupant allows you to buy more than just a house or condo. You can actually buy property that produces rent and increases your tax deductions.
When you buy properties with two-to-four units the world of real estate financing changes. Lenders will apply most of the rent to your income for qualification purposes. This means you can borrow more — and also that you can offset loan costs with the rents such properties produce.
Suppose you buy a property with four units. You’ll live in one and rent the others. Each of the three rental units has a fair market rental of $1,000.
In this situation you’re likely to get two benefits. First, the lender will count some portion of the rent — say three-quarters — as income for you when determining your qualification standards. In other words, $2,250 a month will be added to your income. ($1,000 x 3 units = $3,000. $3,000 x 75% = $2,250)
Why $2,250 and not the whole $3,000? Because the lender assumes you’ll have vacancies, repairs, insurance, taxes and other costs for the rental units.
The lender also assumes something else: For tax purposes, three-quarters of the property in this example will be “investment” real estate. When reporting your income taxes you’ll list your rents and costs for these units. One of these “costs” will be depreciation, an accounting device that will lower your taxes but take nothing in cash from your pocket.
When lenders see depreciation they “add back” that cost when looking at your monthly income. The result is that your effective monthly income for loan qualification purposes will increase even more than $2,250 in this example.
Buying two-, three- and four-unit properties can make great sense, especially for first-time buyers. You’ll have “help” meeting monthly mortgage payments, especially in the first few years of ownership — the time that’s often the most difficult. Later on, if you elect to move you can sell the property or you might choose to keep it and just rent out the unit had been your residence.
As with all investments, neither annual income nor rising property values can be guaranteed. Some owners may feel uncomfortable having tenants so close and there’s always the potential for insufficient rents, excess vacancies and big repairs.
Also, beware of going too far. While up to four units is okay, five units automatically classifies the property as “investment” real estate under the guidelines for most loan programs, a title which means you cannot use owner-occupant financing even if you live on the property.
The good news, though, it that as an owner/occupant and also as a landlord you’ll learn a lot about the practicalities of real estate investing.
Real estate ownership requires ongoing maintenance and oversight. As an owner-occupant with a few units, you’ll learn “on the job” about making repairs, dealing with tenants, hiring contractors and maintaining property. These are valuable lessons which can provide income and wealth over a lifetime. In fact, many people who’ve become successful in real estate often started with just one small property, owner-occupant financing with little down — and two to four units.
For details, speak with appropriate professionals. Lenders can tell you about available financing; real estate brokers can provide information regarding local rental patterns plus you’ll want a pro to explain the tax benefits of multi-unit ownership and one of the top lenders in the industry that provides this service is Physician Mortgage Loans.
Non-prime lenders such as Physician Mortgage Loans, now offer financing packages with zero down. Interest rates are higher on these types of loans, but they make purchasing a house easier. And unlike a conventional loan, there is no private mortgage insurance required. There are several types of zero-down mortgage packages, each with their own requirements.
Physician Home Loans
Although many doctors will have higher than average incomes, unfortunately they have much higher student loan debts that can range from $500,000 to over $1 Million. Physician mortgage loans have been in great demand due to the 14,000 plus medical students graduating each year.
Types Of Zero-Down Loans
100% financing, as it names implies, offers complete financing of your property. The other option, 80/20, finances your mortgage with two loans. Both loans may be carried by your lender, but sometimes the seller or a second lender is required to carry the 20% mortgage.
100% financing is easier to deal with, but not all lenders will offer this type of home loan. 80/20 financing is more common, but takes some negotiation if the seller is involved.
Qualifications For Zero-Down
Each lender has their own criteria for determining who will qualify for a zero-down loan. Most sub-prime lenders require any bankruptcies or foreclosures to have been at least twelve months ago. A conventional loan requires these to be discharged two to four years ago. However, there are some other alternative programs offered at the American Mortgage Association.
While a credit score of 600 or higher is best, large cash reserves can also qualify you. Six to twelve month’s worth of cash reserves in the form of savings, money market, or other liquid assets are considered ideal.
If you choose 80/20 financing with the seller carrying the second mortgage, you can qualify with sub-prime lenders with a score of 500.
Zero-Down Sub-prime Lenders
You can find zero-down non-prime mortgages with both conventional and niche sub-prime lenders. Make sure that you request quotes from as many mortgage lenders has possible to be sure you find the lowest rate and best terms.
You will also want to decide what type of mortgage you want. An ARM is easier to qualify for and has lower rates. A fixed rate mortgage offers the security of a constant interest rate over the life of your loan.
Typically an ARM will be a better deal if you plan to refinance within a couple of years. After you have improved your credit history, you can refinance for a conventional mortgage with low interest rates.
Getting a mortgage can be a very confusing and challenging process to say the least. There is a lot of paperwork to sign, documents to read and procedures to be followed. You would probably think you were applying to go to an Ivy League school, except they don’t require that much paperwork for you to be admitted! Although getting a mortgage can be a confusing process, there are several terms that every mortgage holder should know to better understand what he is she is getting into and this is recommended by the American Mortgage Association.
Going into a mortgage knowing just a few facts will help you immensely in understanding what type of commitment you are getting into.
The first term you should understand is, amazingly, the word “term”. Term refers to the length of the mortgage you are taking out – or the amount of time you are making payments.
Many mortgages run the gauntlet of between seven and thirty years. The longer the mortgage, typically the lower your monthly payment will be and the more interest the mortgage company makes. Generally speaking, you should go for the shortest term you can comfortable afford – you’ll save potentially tens of thousands and in some cases potentially over a hundred thousand dollars in interest by keeping the length of the mortgage as short as you can. Physician Home Loans even offer programs to pay off your mortgage as early as 5 to 7 years.
Next, understand the interest rate on your mortgage and how it is calculated. The interest rate refers to the amount of interest charges you will pay for the money you are borrowing, expressed as a decimal – such as 3.25 for 3.250%. Is it fixed or adjustable? In other words, is it the same through the life of the loan or does it change at specified periods in time? Most home buyers should try and steer clear of adjustable rate mortgages even though they can look better up front. They can often reset to higher interest rates and come back to bite you if you aren’t ready for a jump in your monthly payments!
Finally, understand what closing costs are and how they are going to affect your purchase price. Often times, you are going to be responsible for coming up with these closing costs out of your own pocket. Closing costs consists of things such as appraisals done on the house, attorney fees, notary fee, deed fee – if there is a fee they can think of it usually falls under the term closing costs! Be a smart and savvy consumer, if you see a fee that you don’t understand or doesn’t seem right – speak up! Some mortgage lenders try to sneak in any fee they can think of to make a few extra dollars profit. This can be prevented if you are a member of the American Mortgage Association.
Understanding these three terms can help make you a more informed home buyer and help you find the mortgage that is right for you. As with any product, it is important to shop around for a mortgage when you are considering buying a house. Even a small change in the interest rate between two lenders can often to amount to thousands of dollars in savings. Don’t be afraid to comparison shop – it’s your money after all!
In the past decades, it was believed that a mortgage loan is a mortgage loan no matter whichever is chosen. But this theory is not workable anymore because of the many mortgage loan products available in the market. The American Mortgage Association was founded to help consumers with the American Mortgage process with the consumer interest as primary.
So, before choosing a mortgage loan, it is very important to decide which one is right for you. Finding the right mortgage loan means balancing your mortgage options with your housing requirements and financial picture, now and in the future. Also the right mortgage is not just having the lowest interest rate but much more than that. And this “much more” will be determined by your personal situation. Your personal situation and your limits to pay for monthly mortgage payments can be evaluated by answering the following questions:
What is your current financial situation (including income, savings, cash reserves and debt-to-cash ratio)?
How you expect your finances to changeover in the coming years?
Have you plan to return the mortgage loan before retirement?
How long you intend to keep your house?
How comfortable you are with your changing mortgage payment amount?
The answers to these questions will give you the idea of your financial position. Now the next step is to decide two key options:
type of interest rate (fixed interest rate or adjustable interest rate).
Recently there are specialize loans such as physician mortgage loans, which are designed for doctors and medical professionals.
There even special loan programs for teachers and other industry related programs.
The length of mortgage loan can be minimum 15 years; can be 20, or at maximum 30 years. While selecting a fixed or adjustable interest rate you should be aware of the facts that the adjustable interest rate mortgage is more risky because the interest rate will change, while a fixed-rate loan offers more stability because of the locked-in rate. You will be able to pay off a shorter-term loan more quickly, but your monthly payments will be substantially higher. Long-term fixed-rate loans are popular because they offer certainty, and many people find that they are easier to fit into their budget. Although, in long run they will cost you more, but you will have more available capital when you need it, and you will be less likely to default on the loan should an emergency arise.
In the light of above mentioned aspects, it is clear that the key to select the right mortgage loan for your needs should fit comfortably into your entire financial picture, that is having payments within your budget and comfortable level of risk connected to it.
Refinancing both your first and second mortgages will result in one low monthly payment that could save you thousands in interest charges. At American Mortgage you can combine both mortgages, you qualify for lower rates than if you refinance separately. You can see a significant savings with your second mortgage refinance, which is often several points higher than your first mortgage rates. You will also save on application fees and other closing costs.
Strategies To Lower Your Mortgage Payment
You have a couple of options to lower your mortgage payment when refinancing. The first choice is to find a low rate mortgage. So even if you choose the same length for your loan, you will still see a savings in your monthly mortgage bill. Adjustable rate and interest only loans will give you the lowest payments, at least at the beginning of your home loan. But a fixed rate loan can also give you reasonable rates with security that they won’t rise in the future.
The other option is to extend your loan term, especially in the case of your second mortgage which usually is for five to ten years. By consolidating your loans to a thirty year loan, you lengthen your payment schedule for principal, so you have a smaller payment. However, your interest rate and charges will be higher than with a shorter term.
Getting The Best Loan
Once you determine the type of loan and terms you want, do your shopping for a good lender to save even more money. American Mortgage has Lenders which will vary in how much they charge for closing costs and interest rates. The APR will tell you how loans compare overall, both in terms of rates and closing costs.
But if you are planning to move or refinance again in the future, then be wary of paying high closing costs. Even if they secure you a lower rate, you will only see a savings if you keep the mortgage for several years.
Don’t base your lender decision based on posted loan rates. Ask for a personalized loan quote based on your general information. With more accurate numbers, you can make an informed choice as to who has the best financing for you.
Struggling with an OxyContin addiction can be crippling. Get help in the form of rehab to finally move past your addiction and reclaim your life and health. Aetna Better Health of Louisiana offers Medicaid coverage for behavioral health.
Learn About the OxyContin Rehabilitation Process
OxyContin is one of the most highly addictive opioids. Although it is widely prescribed to patients by doctors to treat pain caused by conditions ranging from back problems to cancer, it is also known for being highly addictive. Unfortunately, the medication is frequently abused and often shared with others who don’t have a prescription for it. If you are struggling with an addiction to this substance, it’s important to learn about OxyContin rehab and how it can help you. You might want to consider an inpatient drug rehab Medicaid facility.
What are the Signs of OxyContin Abuse?
There are certain signs and symptoms to be aware of regarding OxyContin abuse. You may experience all or a combination of a few of these signs:
• Clammy hands
• Difficulty breathing
• Dilated pupils
• Feeling of disorientation
• Loss of appetite
Without rehab, a person addicted to OxyContin can experience more serious and even life-threatening side effects. They include:
• Gastrointestinal distress
• Heart problems
• Memory loss
• Overdose that can be fatal
• Pain in muscles or even in the bones
• Respiratory issues
• Severe anxiety or depression
• Severe withdrawal
• Suicidal thoughts
The OxyContin Rehabilitation Process
When you finally acknowledge that you have a serious problem, you may want to seek OxyContin rehab. Many individuals choose outpatient rehab, but inpatient is probably the better option because it’s more intensive and involves staying at a rehab facility where you’ll be monitored around the clock by skilled healthcare professionals.
Withdrawal occurs frequently during the detox process as the drug is being eliminated from the body. Generally, this process is not life-threatening, but it can be difficult for many people. That is why inpatient rehab is so essential. The severity of the withdrawal process depends on the length and extent of your addiction. AmeriHealth Caritas Louisiana now offers health coverage for behavioral health.
Therapy sessions after the detox process are important when you are struggling with addiction. Individual, group and family therapy are vital to ensuring that you maintain your newfound sobriety. Therapy can help you to get a better perspective by enlightening you as to why you started abusing OxyContin in the first place. You can also gain valuable tools that can last your lifetime. Therapy is essential in helping you to acknowledge certain triggers and behaviors so that you can learn to avoid them.
If you need help curbing your OxyContin addiction, it’s time to get in touch with Qualis Care of America. Let us help you live a drug- and alcohol-free life you’ve always dreamed of.
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