Dear Edith: I own a house worth $150,000– all paid, no home mortgage and in exceptional shape. My only income is $1,000 a month in Social Security. Can I get a refinance (2nd home loan) loan of $50,000 with only that earnings? I have no other financial obligations and a good credit record.– J. D.Answer: When I
determined the monthly payment on a 30-year mortgage at todays low rates, I was pleasantly shocked to see that you met the standards for dealing with the payments conveniently. Then, my favorite mortgage broker agreed that if your buildingyour home taxes aren’t expensive, you just may certifyget approved for a $50,000 loan.That wouldnt be
a refinance or a second home mortgage, by the method. As the location is totally free and clear, youd be looking for a first mortgage.If youre old enough for regular Social Security, you may also desire to consider a reverse home mortgage. With that one, you make no month-to-month payments and can receive a swelling sum or regular monthly earnings. The debt, consisting of closing costs, interest and FHA insurance premiums, simply keeps stacking up. It will be settled, generally by the sale of the home, when you die or move out.Whether that would fit your scenario– potentially with nothing to leave your heirs– I cant inform, of course. Youd be talking about that with qualified counsellors prior to you decided.Dear Edith: I have actually been following the tub vs. shower conversation with interest. I was shocked no one mentioned my experience. 10 years ago I asked a plumbing technician to replace my tub with a walk-in shower. He recommended against it, as he said banks will not give funding to purchasers who purchase such a house. That appeared remarkable, so I contacted 3 banks and two genuine estate brokers. They all verified it. The banks said such houses have a restricted swimming pool of prospective purchasers and banks that do not consider it an excellent danger to potentially be stuck to such a home to offer. I wonder if the caveat still uses.– M Response: Fascinating concern, M. Again, I spoke with the home loan broker. He says he has never ever heard of that
, which a home with no bath tub might even certifyget approved for VA or FHA financing. He also states, in fact, that he and his wife are believing of downsizing, and wondering if they really require a tub at all.