A title loan is a secured loan in which a borrower uses his vehicle as collateral. The borrower must temporarily hand over the hard copy of their vehicle’s title and allow the lender to place a lien against the car’s title. Once the loan has been repaid, the title is returned to the owner and the lien is removed. But if the loan isn’t repaid, the lender can repossess the … [Read more...]
Reverse Mortgage Pros and Cons
A few years ago my mom and dad were in a tough financial situation. They were both retired and unable to work due to health concerns, and they were struggling to get by on Social Security and a small monthly pension. They still owed a lot on their mortgage, plus credit cards, and their property taxes were too high too. They thought they were going to lose the house they … [Read more...]
How Does a Reverse Mortgage Work?
If you're 62 or older and short on cash, you might be considering a reverse mortgage. But before you jump in and sign the paperwork, it's important you understand how a reverse mortgage works. When I was young and just out of college, my parents took out a reverse mortgage on their home. My dad had suffered a debilitating stroke and my mom suffered from congestive heart … [Read more...]
Should I Pay Off My Mortgage Early?
Is paying off your mortgage early a good idea or a mistake? The other night we went to our neighbor's house for dinner and while the kids played video games in the living room the adults hung out in the kitchen drinking craft beer and chatting. My buddy Pete started talking about his family's finances and he asked me straight out, "Should I pay off my mortgage early?" I … [Read more...]
Mortgage Escrow Accounts Explained
If you’re currently paying a mortgage on your home, odds are you’re paying your property taxes and homeowner’s insurance through a mortgage escrow account. But what is a escrow account and is it really necessary? A mortgage escrow account is kind of like a forced savings account. When you make your monthly mortgage payment, you’re not only paying for the principal and … [Read more...]
