Watch Out For Reverse Mortgage Scams

Reverse Mortgage Scams

How A Reverse Mortgage Works

A reverse mortgage is a loan product that allows homeowners 62 years of age and older to use their equity to generate tax-free income, without having to take or sell the home on a new mortgage payment. The reverse mortgage is exactly what the title states, the reverse of a standard mortgage. With a standard mortgage, the borrower (or homeowner) makes monthly payments to the lender (or bank or mortgage company), in order to pay back the loan that the lender originally lent to for the purchase or refinance of the house.

Ever wonder how a reverse mortgage works? For older Americans, there is another, less common option that is growing in popularity as home prices have increased and baby boomers have moved closer to retirement age: the reverse mortgage. Do you know what it is, and do you know how a reverse mortgage works?

The reverse mortgage is exactly what the title states, the reverse of a standard mortgage. For reverse mortgage borrowers with an existing mortgage, that mortgage will need to be paid off completely, so that the new reverse mortgage will be the only lien on the house. If the proceeds from the reverse mortgage are not ample to pay off the existing mortgage, the borrower will need to access savings or other sources to pay off the rest of existing mortgage amount. The more common scenario is one in which there is a small or no mortgage on the home and then the borrower is able to access nearly the full amount of the reverse mortgage to use at their discretion. One very important facet of the reverse mortgage process is the consumer counseling that is required for borrowers contemplating a reverse mortgage.

There are a few factors that determine how much money a borrower will receive from a reverse mortgage, such as the value of the home, borrower’s (and co-borrower’s) age, current interest rates and any lending limits that may be standard for your geographic area. The line of credit is the most popular option, with nearly 60% of reverse mortgage borrowers choosing to the option to draw income or a lump sum off the line at the time of their choosing. And the proceeds from the reverse mortgage can be used for anything, completely at the discretion of the borrower, though most borrowers use the funds for home repairs or modifications, health care expenses, to settle other debts, or for their long-planned vacation!

Overall, for older Americans contemplating a stress-free retirement, the reverse mortgage may be just the option! Just make sure that you know your goals and options … and how a reverse mortgage works.

One very important facet of the reverse mortgage process is the consumer counseling that is required for borrowers contemplating a reverse mortgage. Counselors are obligated by law to review with you all of the implications of the new mortgage, and what your potential options are.

For reverse mortgage borrowers with an existing mortgage, that mortgage will need to be paid off completely, so that the new reverse mortgage will be the only lien on the house. If the proceeds from the reverse mortgage are not ample to pay off the existing mortgage, the borrower will need to access savings or other sources to pay off the rest of existing mortgage amount. The more common scenario is one in which there is a small or no mortgage on the home and then the borrower is able to access nearly the full amount of the reverse mortgage to use at their discretion.

Secured Loans

The Different Types of Secured Loans

Secured loans are loans where the borrower presents collateral in form of assets such as vehicles, land or even a home. Due to the property acting as security in any form of risk in the future during the loan repayment procedure, the secured loan further takes up another name, secured debt.

The fact is that secured loans are debts that have been secured against the aforementioned collateral on the account that the borrower may not be in a capacity to completely clear the debt as per the contract. The work of the asset or property used as collateral is therefore, to act as security in case the borrower defaults and thus giving the lender the right to repossess that particular property and later selling it to recover the entire amount as per the contract agreement.

Secured LoansThe difference between secured loans and unsecured loans

When the lender concentrates on collateral in terms of property and other assets, which can be sold to recover the amount that has been lent to the borrower, this type of loan is known as a secured loan, however, when none of the mentioned needs to take place and can still afford to lend an agreed amount to the borrower, the loan is termed as unsecured. Secured loans always attract substantial interest rates that the borrower may be able to account for with ease as compared to unsecured loans. Factors such as the ability to repay the loan and the nature of the credit history can be used to dictate the probability of accessing unsecured loan contrary to secured loans where the mentioned may not apply.

Why secured loans would be a better choice

Evidently, creditors find secured loans a better choice as they can be able to repossess the property thus covering the borrowed amount. Creditors in this case are normally relieved most of the risks associated with borrowing funds such as untimely death of the borrower, or even bankruptcy. On the side of the debtor, it would be easier for them to access secured loans on favourable terms in accordance with interest rates and other factors affecting borrowing of money from lenders. Not only, that, factors such as credit history and past debts are considered unnecessary as compared to unsecured loans where in most case’s credit checks are a must.

Types of secured loans

There are different types of secured loans and these may include mortgage loans, nonrecourse loans, foreclosure loans, as well as repossession loans. When the collateral becomes your home or other related property, this type of loan is known as a mortgage loan, whereas a nonrecourse loan is the type of loan where the only thing, the lender has as security is the collateral submitted by the borrower. Foreclosure entails court order to resell a property in order to recover debt by the lender whereas the repossession is whereby the creditor has the right to repossess any property of the borrower, in case he or she fails to clear payments are agreed. This sometimes can require a court order, but there are times when it may not as per the jurisdiction.


Travel TypesModes Of Travel

There are different ways in which people can move from one place to another. Modes of travel apply in areas where an individual must choose the safest and best mode that applies in the kind of journey he or she wishes to take or the products to transport. There are three major types of travel and these include land, air and sea.

Factors that determine the mode of travel to choose

Although each of the categories is further subdivided according to the vessel to use to reach your destination, determining what kind of travel to choose isn’t hard when you already have an idea on what you intend to transport. For instance, if you intend to travel with your family from London in England to Edinburg in Scotland, you could choose to use a train, travel trailer, aeroplane or even a large boat among other modes of travel. The transportation industry has evolved from the time steam engines were used to combustible fuel like petrol and diesel. Note that each of the mentioned modes of travel encompasses different uses of technology to aid in the movement from one place to another like in the case of choosing different types of vehicles suited for a particular event or road.

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Air travel

The use of an airplane to move from one place to another has been recorded as the second fastest mode of travel the first being the use of a spacecraft. Air travel aids in the transportation of people from one place to another in addition to different kinds of belongings in the cargo area of the air craft. However, unlike other means of travel as we are going to see later in the content, air travel incurs a lot of expenses due to fuel costs.

Land travel

Land travel is perhaps the widest used mode of travel up to date. It encompasses modes such as walking, vehicle, as well as off-road transport. There are those vehicles designed to ply on all kinds of roads both smooth and rough. Rail transport is also part of land travel as it is built on land, although there is rail transportation that passes through water bodies. Rail transportation, which uses trains to make the travel substantial, can use different forms of routines such as carrying heavy cargo from one city or country to another. Road transport encompasses the use of personal and passenger vehicles to move from one place to another.

Sea travel

This mode of travel is also known as water transport and uses ships, steamboats, hovercrafts and other kinds of propelled sea boards in the transportation. Any vessel that can pass through water body through navigation can be categorised as an impeccable means of travel over sea, ocean, and lakes among other water bodies. When you compare air transport with water transport, you will realize that travel by water bodies doesn’t cost that much although not as cheap as road or land transport.

There are other forms of travel platforms that may include pipeline transport for gas and other liquids such as oil, cable transport like in aerial tramway as well as elevators and escalators among others.


All You Need To Know About Mortgages

Mortgages are legal contracts between lenders and borrowers. The term is derived from the use of the real property in purchase as collateral as the funding ensues. First-time home buyers always find it a bit complex to understand the meaning of mortgage buying and what is needed before the home you leave in can be called your own.

UK 1st Time Home BuyerWhat to do the first time you start using mortgages

For first-time buyers, they never know what to do in order to secure their positions as mortgage buyers and for this reason, various accounts must be taken into consideration. For instance, before any necessary signing of documents to pave way for the contract should be discussed at length and researched in depth if need be. This is necessary if the new buyer doesn’t understand on some of the terms listed in the contract. If having a lawyer or someone to interpret those terms to a language that the buyer better understands can solve the situation, then it should be done.

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How mortgages are approved

Mortgages need to be approved according to the qualification’s standards of the lender and the borrower. For instance, issues such as previous debt, necessary assets in possession by the borrower as well as the nature of the credit history can mostly contribute to fast or slow approval respectively. Another considerable fact would be the value of the home to be purchased. Note that pre-approval before one embarks on the different kinds of mortgages to search for should be done. A lender can quickly pre approve an aspiring home buyer that portray remarkable credit reports and other financial history. Either way, when an aspiring home buyer has already been pre approved by the lender, the seller finds it worthwhile to sell his or her home to the person. Either way, pre approval process also helps the borrower know what kind of mortgages him, or she can afford.

Down payment for mortgages

Depending on the binding agreement on the contract, the down payment on mortgages can differ from one home to another. However, in most circumstances, this can be about 20% of the total amount on that home. When federal housing administration insures loans to borrowers, the percentage could go as low as 3% or 5%. However, it has been noted that lower percentage in most times is made available to people with excellent credit reports.

Interest rates on mortgages

Mortgages can be repaid in a period of twenty, twenty-five or thirty years, although recently those intending to pay for ten or fifteen years can also take part but will be charged higher interest rates. The loan, which is the principal, should be paid on the monthly basis, which is an instalment according to the agreed payment procedures. There are fixed rate repayment’s schemes where the interest rates don’t change where as there adjustable rates where the interest rates could change by either are going, higher or lower. If the time you bought your mortgage, the rates were lower, then fixed rates are better.

Mobile phones

History And Evolution Of Mobile Phones

Mobile phones are communication devices that enable people to connect from long distances without the help of cable or other previous forms of telephony services. Mobile phones use radio links to receive and make telephone calls. In order to work, a mobile phone operator provides the subscriber with the capability through the purchase of cellular network from them.

UK Mobile PhonesHistory of mobile phones

Radiophones have been in use for a very long time where the invention of Reginald Fessendens made way to the mobile telephony market. In the past however, the gadgets were only available to the military and were in influential during the Second World War and throughout in 1950s. However, back in June 17th 1946, it has been recorded that the first mobile telephone call was made, and the kind of service used at the time was the Bell System’s Mobile Telephone Service. From that time, on, the evolution of mobile phones continued through 1950s, mobile phones that weighed up to 40kgs were in use, and those were composed of vacuum tubes as well as relays.

The first use of cellular network

As the evolution of mobile phones ensued, back in 1973, Martin Cooper would later be recorded as the first person to use a heavy but yet portable handset to make telephone calls. This was perhaps the first time cordless telephones were getting introduced into the telephony market. Unlike the first mobile phone that weighed up to 40kgs, the Martin Cooper invention weighed about 5kgs and sold in the market at about 4,000USD. Although the phone took about 10hrs to charge, it could only last about half an hour before the battery died off while talking. By 1983 demand was higher and consumers wanted a test of this new exciting technology. The entire cellular technology went on to launch in different parts of the world throughout 1970s and 80s.

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2G and 3G

The second generation of mobile phones also known as 2G took place in 1991 when this technology was launched back in Finland to work on the GSM standard networks and thus challenging the first generation also known as the 1G that had gained popularity throughout 1980s. The 2G network was not to stay on forever since 10 years after its debut; in 2001 the third generation of mobile phones also known as 3G took a course where the WCDMA standard network was employed.

Although, up until now, no major changes on the third generation of mobile phones, the fourth generation and fifth generation have already started making their way, however, there have been updates on the 3G and this move has seen different terms come in the picture with 3.5G, Turbo 3G as well as 3G+ gaining popularity. All those enhancements are done to ensure that the network increases in speed and the packet data and this terms high speed packet access also known as HSPA. The idea is to have an improvement on data transfer in terms of speed and stability as well as the capacity of data that can be handled per second.


UK LoansThe Various Applications Of Loans

Loans are forms of debts, and thus this means that the lender and the borrower would be involved in a kind of relationship whereby according to the agreed time of repayment of the loan, certain risks may befall them in accordance to with their assets and other securities provided.

How to loans work?

During the loaning process, the borrower approaches the lender to request assistance on a particular amount of money. This aforementioned amount is referred to as the principal and the borrower is hence required to pay that same principal back to the lender at the agreed date. Depending on the type of loan accessed, loans can be cleared in forms of monthly instalments or paying a substantial amount every six months. While requesting loans from family members may not be subject to interest, most loans acquired from private lenders and banks are subject to interests. The interest is the extra amount charged on the debt as an incentive that the lender may take part in the transaction. Legal loans and friend or family loans differ on that account whereby the contract enforces all the mentioned loan related covenants.

Types of loans

There are about four types of loans but two of the four types are mostly applied in the loaning procedures.

Secured loans for instance are used when the borrower intends to borrow a substantial large sum of money to be paid at a later date. This kind of loan is also a type of long term loan where collateral such as a car or property is required to act as security in case of anything. When the borrower may not be able to pay the entire amount within the agreed period of time, the lender will have the obligation to possess the asset provided as security to cover the remaining part of the loan.

Unsecured loans are the type of loans that don’t account for the borrower’s assets as collateral and are packaged according to credit card reports, the borrower’s monthly salary as well as possible positive history of the borrower engaging in similar transactions. Sometimes the interest rates that may apply on these loans may differ from one contract to another depending on the agreement of the lender and the borrower and is also sometimes under law regulations like in the UK where the consumer credit act of 1974 applies.

Demand and subsidised loans are all short-term loans that also differ to some length. For instance, unlike subsidised loans, demand loans could be unsecured or secured although their repayment dates are somewhat fixed.

Other types of loans

Commercial and personal loans can all fall under the main categories of loans but the repayment terms as well as other terms like the credit score may somewhat bring an entire new picture on the issuance of those loans and the interest to be charged on either. Loans are meant to provide the lender with security, not take advantage of the borrower to make more money in the process of lending the money.

Commercial Credit is typically broken up into specialties such as:

  • Cash Flow Financing which is designed to assist companies with short-term loans to augment the borrowers’ existing cash flow to cover the daily costs of running a business while waiting to collect their receivables.
  • Commercial Term Loans which are generally meant for purchasing items required for the business which can range from simple machinery to buildings to purchasing property.
  • Business Leasing is a type of funding which is generally used for financing items such as vehicles, computers, equipment, furniture and the like.

Car Insurance

UK Auto InsuranceCar insurance in the UK

Car insurance can take different names, including auto insurance and motor insurance. This kind of insurance is normally purchased for protection against all forms of physical damage to the vehicle as well as bodily injury to the driver and the passengers alike.

Car insurance and its application

The application of car insurance ranges from payment of all valid claims resulting from traffic collisions between other forms of accidents. Car insurance is the type of insurance that applies not only on cars, but also on trucks and motorcycles among other kinds of vehicles that travel by road. Car insurance also covers liability of the driver in case of injury to third person. However, the terms and conditions that dictate the application of this policy differ from one region to another. To some extent, it has been noted that vehicle insurance also presents financial protection to the policyholder dependence on various outcomes such as thievery, and damage to the vehicle by unknown persons. In general, the policy extends beyond traffic collisions. In the UK, it is recommended that every motor vehicle owner purchase car insurance in accordance to the road traffic act.

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History of car insurance in the UK

Back in 1930, a law was passed by the UK government that not only ascended that every person that owns a vehicle to hold an insurance policy to cover bodily injuries to them but also personal insurance that would cover the same fate to third parties. Although that law continued to work from then, further modifications have taken place such as having all motorists insured, have made a substantial amount up to about 500,000p. If not, the motorist should at least have a security that can be used in case of any liability to pay for damages incurred. Today, it can be a punishable offence by law when one uses a car without insurance or even allows others to use it when it hasn’t been insured, and this applies on all public highways or public premises.

Minimum level of insurance cover available in the UK

Third party car insurance or the third party only insurance is the minimum insurance cover that has been described positively on the account of satisfying the requirements that fall under the road traffic act. The case with this cover is that it covers liability that could be incurred on third parties whereas omitting other possible risk covers. The third party, fire and theft seemingly are the most common kinds of cover that most drivers and motorists tend to purchase. Just as the cover describes, when the vehicle is damaged by either fire or was stolen, the insurance will replace the stolen car if it cannot be recovered while at the same time restore the already burnt vehicle.

The most suggested type of car insurance is the comprehensive insurance that also happens to cover any of the earlier mentioned damage or liability, and this ranges from the damage caused by the driver as well as the damage caused by natural disasters or unforeseen calamities. Councils and authority owned vehicles could be exempted from some of the covers.


UK InsuranceTypes of Insurance Benefits And Their Uses

Insurance is perhaps described in area where two parties are engaged in kind of business transaction where one person purchases policies to help cover possible cases of loss and make duly payments on monthly or yearly basis, the outcome will define the preparedness of that particular person towards any kind of risk and the measures, he or she has taken to combat them.


In general terms, insurance can be defined as a type of risk management strategy where possible risk of loss is transferred to another entity. The person to whom insurance is purchased from is referred as the insurer while the insured is the person that has just purchased this risk management strategy. The insured purchases what we call premiums depending on the type of risk management strategy purchased and in this case, the risk management strategy is the insurance.

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Parties in an insurance contract

There are two parties involved in an insurance contract, and these are the insurer and the insured. The insurer can be the company that sells insurances in forms of premiums to an esteemed purchaser who in this case is the insured. The amount the insurer would be receiving from the insured will encompass various possibilities such as type of insurance purchased, the time involved as well as the entity. For instance, life insurance and car insurance is two different insurance policies that cover different entities, carrying different time as well as the amount to be charged in either.

Types of insurance policies

There are many types of insurance policies and most of them are introduced over time depending on the possible risk that needs to be averted.

The most common type of insurance is the auto insurance, which covers possible losses against financial constrains that may be subject to the policyholder’s vehicle involving in any kind of incident like a traffic accident and the coverage ranges from covering property in terms of theft, as well as possible damage. There is also liability that tends to cover incidents where the vehicle may injure someone or property of another as well as encompassing costs that range from treatment, funeral and wages as well as rehabilitation. While in some countries like the UK the driver or vehicle owner is required to buy most of those covers, in other countries, the driver may have to choose randomly.

Another type of insurance is gap insurance, which tends to cover insurance loans that haven’t been addressed by the normal insurance cover in auto insurance. Note that gap insurance can be accessed from the finance company.

Home insurance covers possible destruction of the policyholder’s home. Depending on the geographical setting of the home, the risk may include some of the risks and exclude others; however, common possible risks covered include floods and earthquakes in most parts of the world. Seldom home maintenance doesn’t fall under home insurance policy.

Health insurance is another common type of insurance that is very important to the policyholder. This is because they cover possible risks of paying a high bill in the hospital. This insurance policy is also important during emergencies.

Other insurances include accident, disability, casualty, crime and political risk as well as life insurance for monetary benefits.


UK ForexWhat Is Forex?

The foreign exchange market which is also known as Forex is the global trading where international markets are involved. The purpose of Forex is to help in determining the performance of different currencies and the exchange rate that effect either towards access by different buyers or sellers.

All financial centres from around the globe contribute positively on the meaning and application of Forex. The foreign exchange market, which we have associated with Forex, has the responsibility of helping in currency conversion. Generally, Forex plays a vital role in world economies, business and other forms of exchange platforms that make buying and selling something more than just an exchange of goods or services for cash.

The history of Forex market in the modern world

It is believed that the current Forex, or rather foreign exchange business all over the world took course back in the 1970s. Although this trend has fairly crossed to other countries and is happening almost in the entire world, the first of its kind can be traced back in the US in 1970s when the issuance of foreign exchange and transactions was lifted to pave way for the trend that was later to define Forex on bigger terms.

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What makes Forex unique?

There are various factors that encompass the uniqueness of the Forex to the common man, and these include factors such as liquidity whereby as a trading platform, this is, in fact, the biggest asset in the modern world for trading. Another factor that affects its use and also defines its diversity is based on the geographical diversification and dispersion from one country and today can be found almost in every corner of the world. In spite of the weekends when the trend may not be practiced, Forex can be done anytime of the day from Monday to Friday.

Why Forex has grown so popular

Over the past few years, since its debut to the world market, Forex trading has gained a lot of popularity, and all people are giving it a try in their investment options. This is especially a possibility when the outcome is based on increasing large sums of money within a very short period of time. Another reason that makes Forex quite popular as an investment is based on the capital needed to start. While in other forms of investment schemes, the investor may be required to have the substantial amount of capital, with Forex, all that’s needed is enough cash to start off. Note that the fact that markets are kept open for whole twenty four hours, five days a week is also another reason that makes Forex trading go an extra mile towards increase in popularity.

Forex strategies

Although there is a high chance that any trader, whether intermediate, advanced or a beginner, might make good returns, those people that perform extremely well in the Forex have used various strategies that can be acquired through consultation, and garnering enough confidence before starting. Evidently, the best way to become an expert is through research and using the right channels. Don’t forget that risk takers always turn out as victors in the process.

Credit Cards

UK Credit CardsWhat Are The Uses Of Credit Cards?

Credit cards are methods of payment conducted by electronic data enabled cards. Credit cards work by allowing the anticipated cardholders to clear payments on goods or services according to the set agreement with the seller, and the buyer, who in this case is the credit card holder.

Credit cards can be subject to investigations when misused, or when infringement of security has been brought into question. However, credit cards are issued with the safety of the credit card holder’s personal information into the picture. These days it is quite hard to steal a credit card that doesn’t belong to you and make payment from it as security on the same has been enhanced.

Credit cards verses charge cards

It should be noted that credit cards and charge cards are two different forms of payment systems, although the two undertake similar responsibilities towards clearing payments. However, when it comes to a charge card, the card holder has the responsibility to ensure that full payment of balances has been undertaken every month and thus there are no arrears on the card, but when it comes to credit cards, a certain percentage must be paid in full according to the agreement set by the card holder and the issuer. Credit cards also make the card holder to be a victim of increased interest rates when the balance is not paid in full at the end of each month.

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Credit cards verses cash cards

Cash cards can easily be used to replace the need for currency and thus if what the holder needs to do is to get some solid money and use it for other purposes, then the cash card would better apply than a credit card that only applies when goods or services have been purchased. Credit cards do not allow you to access cash and hence if there was a need to lend someone money, a credit card may not come to your aid.

How do credit cards work?

Credit unions or banks have a responsibility of issuing credit cards to anticipating credit card holders. Credit cards allow people to make purchases and pay for services, and the amount is charged on the card. Later in the month, the credit card holder will have a responsibility of clearing those arrears on the credit card. If you are unable to clear your balances in full for several months thus leading to accumulation of high interests, you can be associated with people who may have bad credits. However, if you can clear payments in full every month, then you can be associated with people who may be said to have excellent credits.

Electronic verification is primary when using credit cards. Notice that the customer must have enough funds in accordance to the report presented on the account of using this technique to verify the capacity of the holder to clear payment of goods and services in full.

When using credit cards, the merchant also has to verify that the anticipated card is in possession of the actual holder and thus not in violation.