One of the biggest criticisms of reverse mortgages is that they are difficult to understand, including for some seniors who make up the pool of eligible recipients of such loans. However, reverse mortgages can be great financial tools for seniors desperately in need of income whose only assets are the equity in their homes. The best thing such seniors can do to take advantage of the reverse mortgage option while avoiding having a negative experience down the road is to learn how such loans work. Beyond that, here are a few additional tips. (more…)

One of the biggest criticisms of reverse mortgages is that they are difficult to understand, including for some seniors who make up the pool of eligible recipients of such loans. However, reverse mortgages can be great financial tools for seniors desperately in need of income whose only assets are the equity in their homes. The best thing such seniors can do to take advantage of the reverse mortgage option while avoiding having a negative experience down the road is to learn how such loans work. Beyond that, here are a few additional tips. (more…)

Reverse mortgages can be intimidating because they are structured very differently from conventional home loans. Most are Home Equity Conversion Mortgages (HECMs) insured by the FHA. A HECM borrower receives loan proceeds but does not have to repay the loan as long as the home is the borrower’s principal residence and the obligations of the mortgage are met. So, when and how is a HECM repaid?

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Reverse mortgages can be intimidating because they are structured very differently from conventional home loans. Most are Home Equity Conversion Mortgages (HECMs) insured by the FHA. A HECM borrower receives loan proceeds but does not have to repay the loan as long as the home is the borrower’s principal residence and the obligations of the mortgage are met. So, when and how is a HECM repaid?

(more…)

Occasionally, mortgage fraud makes big news. Recently, three reverse mortgage professionals in Florida conspired with a title agent in Pittsburgh to defraud senior citizens and left some of these seniors facing foreclosures. Seniors were encouraged to apply for reverse mortgage loans, the loan officers had the homes appraised and then inflated the properties’ values so it appeared there was substantial equity in the homes. The fraudsters then stole much of the loan proceeds. Fortunately, knowing what to watch for and doing a little research can go a long way in keeping a person from becoming a victim of such reverse mortgage fraud. (more…)

Occasionally, mortgage fraud makes big news. Recently, three reverse mortgage professionals in Florida conspired with a title agent in Pittsburgh to defraud senior citizens and left some of these seniors facing foreclosures. Seniors were encouraged to apply for reverse mortgage loans, the loan officers had the homes appraised and then inflated the properties’ values so it appeared there was substantial equity in the homes. The fraudsters then stole much of the loan proceeds. Fortunately, knowing what to watch for and doing a little research can go a long way in keeping a person from becoming a victim of such reverse mortgage fraud. (more…)

Cash-strapped seniors may have several options for generating more income to meet financial needs. For example, they may be able to save money by moving into smaller, more affordable homes or they may be able to generate more cash by tapping into the equity they already have in their homes by taking out reverse mortgages. It is also possible to combine these two options to save even more money. (more…)

Cash-strapped seniors may have several options for generating more income to meet financial needs. For example, they may be able to save money by moving into smaller, more affordable homes or they may be able to generate more cash by tapping into the equity they already have in their homes by taking out reverse mortgages. It is also possible to combine these two options to save even more money. (more…)

In September of 2010, HUD made available a new type of reverse mortgage loan. Previously, HUD offered only one type, the HECM (Home Equity Conversion Mortgage), but many seniors were put off by the relatively high closing costs associated with these loans. Now, in addition to the traditional HECM Standard, HUD offers the HECM Saver with lower closing costs in exchange for a reduction in the loan proceeds. (more…)

In September of 2010, HUD made available a new type of reverse mortgage loan. Previously, HUD offered only one type, the HECM (Home Equity Conversion Mortgage), but many seniors were put off by the relatively high closing costs associated with these loans. Now, in addition to the traditional HECM Standard, HUD offers the HECM Saver with lower closing costs in exchange for a reduction in the loan proceeds. (more…)

With some research and planning, a reverse mortgage can be a great option to help pay medical bills or other expenses for income-poor but home equity-rich seniors. (more…)

With some research and planning, a reverse mortgage can be a great option to help pay medical bills or other expenses for income-poor but home equity-rich seniors. (more…)