Reverse Mortgage | Reverse Mortgages Information, Rates

Reverse Mortgage Basics: Explaining Reverse Mortgage Loans

admin — Thu, 18 Aug 2011 23:12:39 +0000

Reverse Mortgage 101: Taking the mystery out of reverse mortgage loans

What is a reverse mortgage?

In a study conducted by the AARP in 2006, 93 percent of reverse mortgage borrowers said their loan had a mostly positive effect on their lives. Three percent said the effect was mostly negative. But what are these reverse mortgages, in a nutshell?

Reverse mortgage loans are a type of home loan that is available only to people over 62 years of age. Homeowners … [....Read More]

Reverse Mortgage Qualification Hurdles

admin — Wed, 17 Aug 2011 22:31:55 +0000

It is fairly easy to qualify for a reverse mortgage, but be aware of hurdles that can pop up in the approval process

One of the great things about reverse mortgages is that seniors don’t need income or high credit scores to qualify. However, there are possible issues like those discussed below that homeowners may want to think about to avoid any surprises and disappointment in the loan approval process.

Credit record

Although seniors need not have any minimum credit … [....Read More]

After a Reverse Mortgage Borrower Passes Away

admin — Tue, 16 Aug 2011 22:20:36 +0000

What happens to a reverse mortgage and the home after the borrowers pass away?

Reverse mortgages can be confusing because they are so unique. First off, repayment during the life of the borrowers is never a requirement. Seniors can and occasionally do choose to make payments towards the principal and interest during their lifetimes, but this is voluntary. The loan proceeds and interest are not due until the last of the borrowers permanently leaves the home. As with any home … [....Read More]

Reverse Mortgage Occupancy Requirements Explained

admin — Sat, 06 Aug 2011 00:35:07 +0000

One of the qualifications for a Home Equity Conversion Mortgage (HECM) (the most common type of reverse mortgage in the U.S.) is that the borrower(s) live in the home as their primary residence for the life of the reverse mortgage loan. It is clear then, that seniors cannot carry a reverse mortgage on rental property they do not occupy, but what does this mean for borrowers who wish to take extended vacations, live part of the year in a second … [....Read More]

Adjustable and Fixed Rate Reverse Mortgages: What Seniors Should Know

admin — Fri, 05 Aug 2011 00:34:23 +0000

When taking out conventional (or Forward) home loans, people generally view fixed interest rates as being safer than adjustable rates because fixed rates provide certainty. However, in the world of reverse mortgages, the considerations are different and adjustable and fixed rate plans each have their pros and cons. Unlike with conventional adjustable rate home loans where borrowers worry about the potential for increases in their monthly payment obligations, reverse mortgage borrowers do not make monthly payments so they do not … [....Read More]

HUD Says Reverse Mortgage Heirs Will Not Pay More Than The Home Value To Purchase House

admin — Thu, 28 Jul 2011 04:05:57 +0000

HUD says heirs wishing to purchase home under reverse mortgage will not pay more than home value even if loan amount was greater

The Department of Housing and Urban Development (HUD) released FAQs this week stating that heirs who purchase property carrying a HECM reverse mortgage after the borrower has left the home or passed away will not pay more than the home value even if the amount paid to the borrower under the loan exceeded the homes value. This … [....Read More]

How Savvy Seniors Set Up Reverse Mortgages To Avoid Problems Down The Road

admin — Wed, 27 Jul 2011 03:58:18 +0000

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 … [....Read More]

Understanding when and how a Reverse Mortgage Loan is repaid

admin — Tue, 26 Jul 2011 00:22:49 +0000

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?

When is repayment triggered

Repayment is triggered when the last surviving borrower dies, sells … [....Read More]

Reverse Mortgage Scams and Tips to Avoid Them

admin — Mon, 18 Jul 2011 20:55:31 +0000

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 … [....Read More]

HUD Reverse Mortgage Counseling: What to Expect

admin — Sun, 17 Jul 2011 20:37:25 +0000

The Department of Housing and Urban Development (HUD) requires that seniors receive counseling before obtaining a Home Equity Conversion Mortgage (HECM), which is an FDA-insured reverse mortgage loan. A lender may not begin processing a loan application for a HECM until the potential borrower receives a certificate from his or her counseling session demonstrating that the person has completed the counseling. The certificate must be provided to the lender so the lender can send it to HUD with the loan … [....Read More]