What is it that separates some people from being financially successful? My goal here is to show you the financial lessons that can make your financial secure particularly through direct sales and network marketing. Think about taking charge of your life and start brainstorming as to how you can achieve financial independence. Did you know that Warren Buffet's company has purchased many network marketing companies?. Why is it that so many people take part in network marketing? Because its a proven model and its successful and has created many millionaires in the world.
Network marketing and the direct sales distribution model allows the people who make the sales collect the money directly. You are actually involved in network marketing, but you do not just do know about it. Anytime you recommend something to your friends or acquaintances you are referring something or recommending something but you simply do not get paid for it. What you need to understand about network marketing is that the company are willing to pay you for selling their products. Working at home is another advantage people are getting into network marketing or direct sales. People do not want to work for a corporation that maybe downsizing, they want to attain financial freedom and the only way to do this is to get into the right system.
Whats the right system? Its the profits system and if you can get into this system you have a far better chance of attaining financial freedom. Nobody gets rich in the wage system except professional athletes or corporate executives. Profits are better then wages. Are you currently in the profit system or the wage system? The people who get rich are the people who are in the profit system. The problem with the wage system is that its low risk. Low risk equals low reward. Chances are you may not lose your job but you will not pay rises also. There is a way though you can rich in the wage system and its buy diverting money from your wages into a profit system such as property or stocks or network marketing. Where will you be financially if you stay on the wage system for another 10 years. Its a question that needs to be asked?
Lets now look at profit systems. The most popular way of achieving financial freedom is by owning your own business. It has higher rewards but also higher risk. Lets look at what it takes to open a traditional business such as a store. Well there are fees such as commercial rates, utility bills, equipment, property letting, advertising, etc. You need money to open up your own business. This is where most millionaires are made but it needs money upfront to stay in business. Its a stationery business because its limited by time and space. You can only have so much space and the business hours are nine to five or whatever the working hours are.
Is there a better way where we do not have to put up all that money but still remain in the profit system? It's called network marketing and direct sales. Its easy to start a branch office for network marketing. The beauty of this system is that you are earning income even when you are not working. Lets look at the advantages. The start up costs are practically nil. You have no employees, you have no accounting, you have no real estate, you have no manufacturing, there is no shipping, there is no warehousing. This system is also known as the invisible profit system. I invite you to get started today and get out of the wage system and into the profit system as you need to be on this side on the fence to experience true financial freedom.
History of Reverse Mortgages
To better understand reverse mortgages, it is important to understand what they are and their history. In 1961, the first reverse mortgage was granted to Nellie Young who was a recent widow struggling to make ends meet in Portland, Maine. Luckily Nellie Young found Nelson Haynes, an employee of Deering Savings and Loan, who helped Young solve her financial problem. Haynes specially designed a loan, known today as a reverse mortgage, to help Young pay her bills and stay in her home. Initially a simple act of kindness, this type of financing revolutionized the mortgage industry by allowing homeowners to remain in their homes by converting their available equity.
In 1989, the U.S. Government created the Home Equity Conversion Mortgage (HECM) through the Department of Housing and Urban Development (HUD). According to HUD, reverse mortgages assisted nearly 80,000 Americans in the FY2010. This unique loan allows seniors to tap into the equity of their homes to gain greater financial independence by never having to make another monthly mortgage payment.
How a Reverse Mortgage Helps Seniors
This federally-insured loan katie stoddart allows seniors the freedom to choose to live in the comfort of their home instead of possibly moving to an independent living center or with relatives. These mortgages can offer seniors the opportunity to pay off debt and medical bills, supplement their social security and pension, or just complete a much needed home repair.
The way it works is by liquidating a portion of the home's equity. This means borrowers can be rewarded for their years of hard work, dedication and commitment by using their home to remain in their home. Unlike a conventional mortgage, no monthly payment is required for the duration of the borrowers' occupancy. As long as the homeowner resides in the home, they will never have to make another monthly mortgage payment again!
What are the Qualifications For A Reverse Mortgage?
To qualify for this unique mortgage, one must be 62 years old or older and live in the home as their primary residence. The FHA also requires that homeowners receive counseling from a HUD-approved agency before applying for the mortgage.
There are many types of homes that qualify for reverse mortgage. If a senior lives in one of the following they can take advantage of this unique loan:
In order to understand if a reverse mortgage is the right choice, it is important to understand all of the aspects of this particular loan. If one is short on cash and wants to tap into the equity of their home, a reverse mortgage may be the answer to their prayers. As long as a borrower maintains the home and its taxes and insurance, this financial product may be the right fit.
Benefits of a Reverse Mortgage
Another benefit of this type of loan is the mortgage does not have to be repaid as long as the homeowners remain in the home or remains current on real estate taxes, homeowner's insurance, and home repairs. This means the homeowner will never have to make a monthly mortgage payment as long as they remain in the home. The funds that they are saving can be used however they wish with absolutely no restrictions.
How the FHA Protects Reverse Mortgage Homeowner's and Their Families
If for whatever reason, a homeowner wishes to sell their home and move to a new permanent residence, they have that option. The money from the sale of the home will go toward the reverse mortgage balance and fees, and whatever is left over will be returned to the homeowner.
In the event of death the FHA has instituted reverse mortgage safety nets to help families through this transition. If the estate or heirs choose to sell the home then most likely the sale of the home will cover the remaining balance. Thus the remaining equity belongs to the heirs or the estate. However, if the heirs wish to keep the house then it will be their responsibility to pay the remaining balance and fees or obtain a traditional mortgage to finance the home. If for whatever reason the heirs cannot sell the house, then the FHA will pay the rest of the balance and take the loss. A reverse mortgage can help a senior homeowner access the funds they need to further enrich their life but will also insure their
families won't be left with debt.
What are the Reverse Mortgage Loan Options?
Once all of these specifications are understood, then one can start to explore the loan options. The amount seniors can receive varies with age, home values, and interest rates.
Below are the five different disbursement options available with this federally-insured reverse mortgage loan:
Many mortgage companies find that most borrowers are choosing the lump sum option due to the stability of a fixed rate. However, just like anything in life, it's important to understand the program and the way it works. Contact a reputable specialist today for more information.