What Is A Reverse Mortgage?? Do I Want One?

By Doc Schmyz

If you have not already heard the term reverse mortgage, it sounds like a strange thing. Reverse mortgages are becoming more and more popular these days, but are they scams or are they legitimate?Is it really possible to sell your house back to the bank and still retain the deed to it? Will the bank really pay YOU the mortgage payments? Let's review what a reverse mortgage is so these questions can be answered.

The name is somewhat misleading. A reverse mortgage is a loan that is structured like a mortgage, with YOU as the lender and the BANK as the buyer. In the U.S., homeowners wanting to initiate a reverse mortgage must be at least 62 years old, and own all or most of their home. These backwards mortgages are usually performed through a bank or broker. The homeowner essentially sells his or her house to the bank, in return for receiving periodic mortgage payments. Sometimes the payments can be structured as a lump sum, line of credit, or a combination of the three methods.

So what are the benefits to a reverse mortgage? First it provides a constant and dependable stream of retirement income. Many retirement plans such as 401(K) or Individual Retirement Accounts (IRA) generally increase in value, but are still tied to stock market interest rates. The amount of money they provide during retirement can vary. Social Security, Medicare, and other U.S. government programs have endangered funding, so they may not be reliable sources of income. A reverse mortgage can supplement a senior citizen's income. The amount depends on the homeowner's age, equity of the house, interest rate on the loan, closing fees, and a few other factors.

One very common myth about the reverse mortgage is that the bank eventually takes ownership of your house. This is not true! The deed remains in your name throughout the entire term of the process. However, interest is added to the pricipal of the loan for the life of the loan.

The homeowner can remain living in the house during the entire term of the reverse mortgage. The loan becomes due only when the homeowner moves out, such as moving into a nursing home, or becomes deceased. At those times, the survivors can repay the loan themselves if they want to keep the house. They can also sell the home and repay the loan plus the interest in full. The money paid to the homeowner as mortgage payments must be repaid to the lender when the loan becomes due.

These odd mortgages can provide much needed financial support during retirement. It is a time when medical costs are likely to increase, so an additional source of income can really help. Use a reverse mortgage to help yourself or your aging relatives to gain the financial security in retirement that they worked so hard to achieve. - 23223

About the Author:

Doc Schmyz has worked with investors all over the US. He built a free website shares Real estate investing information for all over the US. Find real estate information by state

The Yellow Metal Spells Profits

By Michael Swanson

The world economy cannot take much more when it comes to currency. The value of a dollar is going down everyday and there is no hope in sight of that situation getting better. Gold mining companies are becoming very popular for this reason for stock picks. People are looking to invest in a sure thing in case their money become useless.

The gold used to represent the paper money. Today, there is more paper money than there is gold. Because of the bank failure during the great depression, President Roosevelt in the 1930's Passed a law to outlaw gold ownership.

People that invest in gold buy it because the money in fairly constant. It doesn't go down so you won't lose money when you invest in gold. The trick is just being patient so you give the gold some time to increase in value so that you can make money off of it.

You can buy bullion or coins or you can trade through the gold exchange traded funds. You can also invest in certificates, derivatives, shares or accounts.

As the cost of gold increases, the dollar value actually declines. Investing in gold, for most people, is a way they can beat the inflation and to ensure that their money holds its value. It is essential to do a lot of research before you start investing in gold. Go on the internet and read one of the many articles about it. Many experts have written articles to help the average person learn more about gold investment.

Gold investing is really the way to go. Go online and read more about it and where you can buy it for less. You will be glad that you did as the value of gold continues to go up. You won't regret investing in gold. - 23223

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To invest in gold in the stock market get my free gold stock picks newsletter.

Understanding Forex Pips (Part II)

By Ahmad Hassam

The results must be converted to dollars using the current exchange rate between the quote currency and the US Dollar in order to obtain the dollar value of the pip if the quote currency is anything other than US Dollar. Here are a few examples:

Example No 1: Lets take the currency pair USD/JPY. JPY is the quote currency here. Using our formula: Pip value for 1 standard lot of USD/JPY= 100,000 (Lot Size)*1(No of Lots)*0.01(Pip Size) = 1000.

You need to convert this pip value into USD if your account is in US Dollar. The quote currency is in Yen, so the value of 1 pip on a standard lot is also in Yen. The broker will do that for you automatically if you instruct the broker to do so.

You should understand that until you instruct the broker to exchange currencies into your own currency, your profit and loss will stay in that currency you made a profit or loss in. So instruct your forex broker that you need your profit and loss statements in US Dollar. However, lets try to learn to do these calculations ourselves as well.

Suppose the USD/JPY rate is 101.02. In order to make the conversion to USD, you need the USD/JPY exchange rate. So the exchange rate is 101.02. The Dollar pip value will be 1000/101.02= $ 9.89. Therefore, 1 pip is equal to $ 9.89 in the case of USD/JPY for a standard lot at the exchange rate of 101.02.

Second Example: Now consider the currency pair EUR/GBP. It is a cross currency pair. Meaning it does not involve USD on any side. Any currency pair that does not have USD in it is known as the cross currency pair. Some cross currency pairs are very important. The base currency in the currency pair EUR/GBP is Euro and the quote currency is British Pound.

Here, the quote currency is in British Pounds, hence the value of pip is also in Pounds. Pip value for a standard lot of EUR/GBP= 100,000 (Lot Size)*1 (Number of Lots)*0.0001(Pip Size) = 10.

Suppose the GBP/USD exchange rate is 1.8465. Dollar pip value will be 10*1.8465=$18.46.

Third Example: The base currency is Euro in the currency pair EUR/USD. The quote currency is in USD so you wont have to make any conversions. Pip value on a standard lot=100,000(Lot Size)*1(Number of Lots)*0.0001(Pip Size) = $10 per pip.

Leverage does not affect the pip value. It should be kept in mind that while the lot size, amount of lots traded and the specific currency pair traded will certainly affect the pip value, the leverage chosen by the trader whether it is 50:1, 400:1 or somewhere in between, has absolutely no bearing whatsoever on the pip value.

You must have seen many times the exchange rate expressed like 0.5678/0.5683. For example the EUR/USD exchange rate might be 0.9955/0.9959. The exchange rate for any currency pair is expressed in the form of bid/ask. The first number is the bid price that you will get from your forex broker if you sell Euros against US Dollar. The second number is the ask price also known as the offer price, the price at which the broker will sell you Euros against US Dollar.

Spread is also an important concept that you need to know. The difference between the bid and ask price is known as the spread. Spread is always expressed in pips. It may vary from broker to broker. Spread is the brokers profit and youre trading cost. Sometimes there can be slippage also. Slippage is also expressed in pips. New traders often think that the difference between the price they see on their charts and the price the broker quotes them is slippage. This is wrong. Your charting software and broker prices are two different things. - 23223

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try These 1500 Pips A Day Forex Signals From Heaven. Know Forex Rebellion!

Six Factors To Ponder When Seeking A Forex Broker

By Richard Henry

Choosing the correct folks to help you could potentially be your ticket to success in Forex Trading. As such, you must make sure you hire an adviser that is deserving of every penny you pay him, and more. You see, a Forex adviser is the person who will trade in your place, and whether you benefit or not, you will have to compensate him, in the form of a commission. So, if you do not want to squander money, it is critical for you to find the ideal broker.

Following are 6 factors to look into:

1. Check their past performance. You will know if a broker is skillful or not by checking out his numbers. If he is making a ton of money, it means that he is a expert broker.

2. Investigate. A little background check would not hurt. This could save you a lot of capital because it keeps you away from deceiving brokers. You can make inquiries from the Commodity Futures Trading Commission or CFTC, or the Futures Commission Merchant or FCM. You should also make darn certain he is a member of the NFA, or the National Futures Association. If you find his records doubtful, then look somewhere else.

3. Contemplate his deposit requirements. Although there is really no need for a deposit to initiate trading, many Forex brokers insist on it as a means of guarantee for themselves in case they will not be compensated by the investor. In spite of this, the deposit should not be too unreasonable; the regular asking rate is $200-$500.

4. Obtain trustworthy and successful software. Your agent ought to be able to tell you about the function of software as a tool in trading. You can employ a demo account, which allows you to try out the software prior to buying it.

5. Bear in mind the use of currency pairs. This is something a superior broker should do, utilize an ample array of currency pairs. Short list a broker that uses the currency pairs you like, as each one has a distinctive pattern.

6. They ought to have customer help. Trading is very lively, and at any given time, you will want the aid of your broker. You do not want to wake him up in the middle of the night simply to trade. It would be very convenient for each of you if your broker has a help desk you can contact, 24/7. Of course, having first-rate customer service is important as well.

Before you enter the arena of Forex Trading, you need to go over these factors and see to it that you will be capable of tackling these in your search for a good broker. Foreign Exchange (Forex) Markets is only a place where traders can trade a currency for a new currency. It is a place where currencies can be bought and sold speedily and in real-time.

Well-known banks, large multi-national companies, local governments and other financial institutions use the Forex Market as a avenue for exchange.

What makes the Forex Market so well-liked?

Since currency trading, involves hugh amounts of funds, many are attracted to the Forex Market owing to the takings they could make in one single winning trade. A large number of traders or companies earned millions in a single trade, that is why its unfeasible not to attract new prospective traders who are willing to risk their money in exchange for potential gain.

Distinctiveness of FX Markets

Forex Markets differ due to the following reasons:

a. Forex Market attracts traders from global markets, so the number of trades are huge.

b. Currencies are able to be bought and sold rapidly, without moving from the company itself, consequently saving valuable loss in time and money.

c. Obtainable in every hour throughout the day (except on Saturdays and Sundays).

d. With the Forex Market, it does not matter wherever you are in the world. There are no geographical borders.

Forex Terminology

Here are some of the terminology usually used in the forex markets:

1. RATE - selling price of one currency.

2. BID OR SELL PRICE - the amount which traders can vend currencies.

3. ASK, BUY OR OFFER PRICE - the amount which traders can purchase currencies.

4. SPREAD - the bid price minus the ask price.

5. TRANSACTION COST - the amount charge to you when you make transactions in the Forex Market. It is regularly the ask price minus the bid price.

The difference between the Forex Market and the Stock Exchange Market? The Stock Market trades in stocks, the Forex Market trades in currencies. Both markets involves buying and selling, the only difference is that with the Stock Market, rules are precisely followed. This is to prevent companies from monopolizing stocks. That is why the Stock Market is highly controlled and has a strict environment compared to the Forex Market where there are no such rules and regulations.

How to start trading in the Forex Market?

The best thing to do to begin trading in the Forex Market is to do research and to talk to an investment company or stock broker that specializes in this market. It is critical for you to know what form of Forex Trading they do before you invest your capital. Go to the one that has a trustworthy background and to whom you could trust your savings.

The earnings can be really extreme but at all times bear in mind that Forex Markets change continuously and it is really very chancy to invest There. You could clear a lot today and lose it all tomorrow. So know when is a good time to buy and sell your currencies.

The best counsel is that you must play your money smart, think really hard before making very important decisions and be very well informed, that is the answer to success in practically any trade or profession. - 23223

About the Author:

Submitted by Richard Henry Author of this article. To learn more of topics like Forex an Currency Trading visit our web site at 6 Factors when Seeking A Forex Broker or 6 Factors when looking for A Forex Broker NOTE article seen above may be circulated freely on web sites, so long as ALL article content and author information remain UNCHANGED.

Forex Made Easy - Helps Generate More Profits In Forex Trading

By Bart Icles

If you want to become a successful and profitable Forex trader, you should in one way or another have access to some form of Forex Made Easy tips to help you navigate the world?s most profitable yet very risky investment market. By simply empowering yourself with all there is to know about Foreign currency trading, you may be able to make your investments grow larger and keep it that way indefinitely and for a long time, and more often rather than the opposite.

* Get yourself a Forex trading education. First rule before going ahead with any business venture involving your hard earned cash is to know beforehand what?s in store for you so you'll know how to navigate your way on it safely and properly once you are confronted with obstacles and other deterring factors. You can do this by enrolling yourself in a Forex trading program, either in a school or university or by enrolling in an online course offered on the Internet by various Forex experts. By learning how and what makes the Forex market and Forex trading work as a whole will enable you to act accordingly to the different influencing factors related to your trading and thus make you do more profitable transactions rather than losing ones.

* One secret why many traders gain knowledge and experience more quickly than others is that they regular practice the art of trading through paper trading. Through this method, they quickly assimilate the proper methods and techniques to use that lead to more profitable conclusions. Software programs of this nature, with its strategies and techniques, can be purchased or downloaded for free on the Internet. Making money from Forex trading, as well as losing it is a common everyday event. To let you be on the winning side of things, practicing paper trading will let train to become an adept trader once you start doing actual Forex trading and keep the odds in your favor.

* Another important thing to keep in mind is to always keep a disciplined approach to Forex transactions no matter how large or small the amounts of money are involved. It?s a foregone conclusion already that 95% of traders will lose their investments and only the remaining 5% will go on to make a profit. If you happen to be on the winning side, always remember not to get cocky and complacent, for tomorrow you might be on the 95%?s side. Just stick to your plan of action and you?ll continue to stay on trading as long as it is advantageous to you.

By simply reading this Forex Made Easy guide, you will view Forex trading in a new light which will surely enable you to be more successful in your trading. If you remember at all times to follow the above guidelines and also to be in control at all times and not the other way around, you'll surely be making more and more profitable deals in the near future. - 23223

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How do you become the best forex trader that you can be? Also, visit us to learn a free forex day trading strategy.