|
|
A small Small Business summary
Small business is a term that is used day-to-day. That is
because in the past decade the rise of small business has been
larger than in any other decade prior. This is largely due to
the increasing number of services that are available to...
Coaching Your Small Business to Success
Coaching your Small Business to Success No matter how large or small a business you operate, hiring an executive coach is no longer a luxury – it’s a necessity in today’s highly competitive business environment. No matter what your management and...
Five Tips to Obtain Credit for Small Businesses
Copyright 2005 Monique Hawkins As many small business owners know, financing is crucial to the financial health of their enterprise. While some small business owners have the resources to launch their business, most look to the credit market for...
How to Sell Your Products Without Competition
Selling your products at shows can be difficult when you have a lot of competition. Although some show organizers are careful to have a good mix of vendors, it's not uncommon for other shows to have 20% or more of the booths filled with vendors...
The Cold Facts of Starting Your Own Small Business
Do you have the right stuff to make it work? Ask yourself these
five questions before making that leap from steady paycheck to
entrepreneurial uncertainty:
1. Are you a self-starter? You must have the self-discipline to
plan, set goals, not...
|
|
|
|
|
|
|
|
Advantages and Disadvantages Of A Reverse Mortgage
Copyright 2005 Paul Jesse
Betty and John, are in their mid-seventies and are currently weighing the advantages and disadvantages of a reverse mortgage as a way of freeing up some cash. The couple purchased their home 45 years ago for about $14,000 since then home values have skyrocketed and recent single family homes in their neighborhood have been selling for a minimum of $160,000.
Like Betty and John, if you’re considering a reverse mortgage it’s important to do some research prior to making a decision. You not only need to understand the basic principles of this kind of mortgage but you also need to look at all the advantages and disadvantages of a reverse mortgage.
Essentially a reverse mortgage is a loan that permits homeowners 62 years of age and older to borrow against the equity in their homes without having to sell it. Further, you don’t have to give up the title or take on a new monthly mortgage payment.
A reverse mortgage loan is tax-free and needs only to be repaid when the borrower (or in the case of Betty and John, when the surviving spouse) dies or sells the home. At which time, the reverse mortgage loan must be repaid in full, including all interest and other charges.
When examining the advantages and disadvantages of a reverse mortgage it’s also important to consider both the process and the related costs of obtaining a reverse mortgage. Unlike a conventional mortgage, with a reverse mortgage, the homeowner (the potential borrower) must meet with a reverse mortgage counselor. References for counselors can be obtained from banks offering reverse mortgages or the U.S. Department of Housing and Urban Development (HUD).
The purpose of these meetings which may take place in person or on the telephone is for the homeowner to learn about reverse mortgages and discuss alternative options. It also helps you decide which kind of reverse mortgage may be best. As well as exploring the advantages and disadvantages of a reverse
mortgage, it’s wise that the potential borrower, also compare costs between various lenders and request a Total Annual Loan Cost estimate for each.
Further to discussing the advantages and disadvantages of a reverse mortgage with a counselor, you also need to understand that there are certain costs involved in the reverse mortgage process. Costs may include application fees, closing costs, insurance, appraisal fees, credit report fees, and quite possibly a monthly service fee. Remember too that since a reverse mortgage allows you to continue living in your home, you’re still responsible for property taxes, insurance and repairs. If these payments are not maintained, the loan could become due in full.
A reverse mortgage may also affect eligibility for federal or state assistance as well as Medicaid. That said, any reverse mortgage money that is received is tax-free and does not affect Social Security or Medicare benefits.
The condition of your home is also a large part of the approval process. It must be structurally sound and in good repair. If it’s determined that home repairs need to be done, the costs can also be financed through the reverse mortgage loan.
The total amount a homeowner can borrow all depends on the kind of reverse mortgage selected, how much equity is in the home, the loan's interest rate and most importantly, the age of the borrower. Typically the older a person is, the more they can expect to receive.
A borrower can receive reverse mortgage payments in one of the following ways: in a lump-sum payment; fixed monthly payments; a line of credit or a combination of any of the above. Most homeowners go for the line of credit option which allows them to draw on the loan whenever money is required.
Paul Jesse is a retired government employee, small business owner and the author of many articles on finance and internet marketing. Visit his website at: http://www.sheamarketing.com
|
|
|
|
|
United States Small Business Administration |
An electronic gateway of procurement information for and about small businesses. Search engine for contracting officers, marketing tool for small firms, ... |
www.sba.gov |
  |
SBA |
The Small Business Planner includes information and resources that will help you at any stage of the business lifecycle. ... |
www.sba.gov |
  |
Main Page - SmallBusiness.com - Small Business Resources |
Find Small Business plans, advice, tutorials about organization, corporations, entrepreneurship, and smallbusiness. |
www.smallbusiness.com |
  |
Yahoo! Small Business: Domain Names, Web Hosting, E-commerce ... |
Yahoo! Small Business provides products and services that enable you to establish and grow your business on the Internet. Services include domain name ... |
smallbusiness.yahoo.com |
  |
Small business advice business start up small business finance ... |
business start up small business finance start up advice. |
www.smallbusiness.co.uk |
  |
Smallbusiness.gov.au redirect to business.gov.au |
Business Entry Point - Helping small business in big ways. An Australian Government initiative. The content from this website has now been consolidated into ... |
www.smallbusiness.gov.au |
  |
Business & Small Business |
Online and print small business publication. Information to help start, grow or manage a small business. |
www.entrepreneur.com |
  |
Microsoft Small Business Center |
Your home for information about Microsoft's small-business products and services, tailored business advice, technology tools, and more. |
www.microsoft.com |
  |
The Small Business Advisor - advice for starting and operating a ... |
Advice and assistance for starting and operating a small or home based business. |
www.isquare.com |
  |
SCORE "Counselors to America's Small Business" |
A nonprofit association dedicated to encouraging the formation, growth, and success of small business nationwide through counseling and mentor programs. |
www.score.org |
  |
Small Business and Self-Employed One-Stop Resource |
IR-2006-2, January 3, 2006 - Temporary and proposed regulations will significantly reduce tax filing burden for nearly 950000 small business owners. ... |
www.irs.gov |
  |
Welcome to Small Business BC your business resource in British ... |
BC Business Services offers assistance and resources for those running or starting a business in British Columbia and Vancouver. |
www.smallbusinessbc.ca |
  |
Small Business Service | Home |
Provides information and advice to help small businesses realise their potential. |
www.sbs.gov.uk |
  |
NSW Small Business |
A site developed by the NSW Department of State and Regional Development for small businesses. Topics include management, resources, current issues and ... |
www.smallbiz.nsw.gov.au |
  |
Business Management & Advice: Small Business Resources & Information |
Looking for business management and advice? Our website includes small business resources and information that can help you. Visit the small business ... |
www.businessweek.com |
  |
Small Business Lawyer, Attorney, Law, Legal Help - FindLaw for ... |
Information and legal sites relevant to small business. |
smallbusiness.findlaw.com |
  |
Small Business Funding Opportunities (SBIR and STTR) |
Links to Small Business Funding Opportunities and SBIR / STTR Applications. |
grants.nih.gov |
  |
Microsoft bCentral Small Business Directory |
Directory categorized by industry with company business card feature. |
sbd.bcentral.com |
  |
Our site has moved! Please update your bookmarks! |
Facilitates the sharing and exchange of information among small business development centers, the small business administration and other business-oriented ... |
sbdcnet.utsa.edu |
  |
Small Business Development Corporation |
Our business information services provides guidance to improve business skills and knowledge on advice on starting, buying, selling and expanding a small ... |
www.sbdc.com.au |
  |
|