Thursday, June 24th, 2010
Read about Reverse Mortgages pros and cons, and check out the resources provided below.
The upsides of reverse mortgages
• You can choose how to receive the money: fixed monthly payment, lump sum, line of credit or some combination of these options.
• Income from reverse mortgage generally does not affect Social Security or Medicare benefits.
• If you “outlive the loan,” meaning you receive more in payments than your home is worth, you will never owe more than the value of the home, according to the Federal Trade Commission, or FTC.
• Loan advances are generally not taxable.
• Most loans do not have income requirements.
• Homeowner retains title to home.
• No payments are due until last surviving borrower dies, sells home or no longer lives in home as primary residence.
• HECM programs allow borrower to live in nursing home or other medical facility for up to 12 months before loan becomes due.
• After the home is sold and the loan and fees are paid to the lender, any remaining equity in the home belongs to you or your heirs.
(more…)
Read about Reverse Mortgages pros and cons, and check out the resources provided below.
The upsides of reverse mortgages
• You can choose how to receive the money: fixed monthly payment, lump sum, line of credit or some combination of these options.
• Income from reverse mortgage generally does not affect Social Security or Medicare benefits.
• If you “outlive the loan,” meaning you receive more in payments than your home is worth, you will never owe more than the value of the home, according to the Federal Trade Commission, or FTC.
• Loan advances are generally not taxable.
• Most loans do not have income requirements.
• Homeowner retains title to home.
• No payments are due until last surviving borrower dies, sells home or no longer lives in home as primary residence.
• HECM programs allow borrower to live in nursing home or other medical facility for up to 12 months before loan becomes due.
• After the home is sold and the loan and fees are paid to the lender, any remaining equity in the home belongs to you or your heirs.
(more…)
Read about Reverse Mortgages pros and cons, and check out the resources provided below.
The upsides of reverse mortgages
• You can choose how to receive the money: fixed monthly payment, lump sum, line of credit or some combination of these options.
• Income from reverse mortgage generally does not affect Social Security or Medicare benefits.
• If you “outlive the loan,” meaning you receive more in payments than your home is worth, you will never owe more than the value of the home, according to the Federal Trade Commission, or FTC.
• Loan advances are generally not taxable.
• Most loans do not have income requirements.
• Homeowner retains title to home.
• No payments are due until last surviving borrower dies, sells home or no longer lives in home as primary residence.
• HECM programs allow borrower to live in nursing home or other medical facility for up to 12 months before loan becomes due.
• After the home is sold and the loan and fees are paid to the lender, any remaining equity in the home belongs to you or your heirs.
(more…)
Tags: borrower, equity, HECM, heirs, home equity, homeowner, homeowners, lender, loan, money, mortgage, mortgage loan, mortgage payments, Mortgage Pros, payments, Pros and Cons, reverse mortgage, reverse mortgage disadvantages, reverse mortgage information, reverse mortgages, Reverse mortgages pros and cons, seniors
Posted in Information | No Comments »
Thursday, January 1st, 2009
Posted on 26 November 2008
If you are going to get a reverse mortgage, you first must know, and be comfortable with, the disadvantages of a reverse mortgage. With a traditional mortgage the borrower pays down the debt over a set term, usually 30 years. Conversely, with a reverse mortgage, the borrower builds up debt while they live in the home.
(more…)
Posted on 26 November 2008
If you are going to get a reverse mortgage, you first must know, and be comfortable with, the disadvantages of a reverse mortgage. With a traditional mortgage the borrower pays down the debt over a set term, usually 30 years. Conversely, with a reverse mortgage, the borrower builds up debt while they live in the home.
(more…)
Posted on 26 November 2008
If you are going to get a reverse mortgage, you first must know, and be comfortable with, the disadvantages of a reverse mortgage. With a traditional mortgage the borrower pays down the debt over a set term, usually 30 years. Conversely, with a reverse mortgage, the borrower builds up debt while they live in the home.
(more…)
Tags: borrower, Disadvantages, equity, HECM, heirs, home equity, homeowner, homeowners, income, lender, loan, money, mortgage, mortgage loan, payments, reverse mortgage, reverse mortgage disadvantages, seniors
Posted in The Basics, featured | No Comments »
Wednesday, November 26th, 2008
by Andrew Caplin, Economics Professor – New York University
used with Permission
There has been considerable debate in the academic literature on the economic potential of the reverse mortgage market. Yet even the most pessimistic assessment suggests that this market should be larger than it is by an order of magnitude. We outline some of the economic forces that may help to explain the gap between the current market and its theoretical potential. These include transactions costs, moral hazard, and consumer uncertainty about future preferences. In addition, we explore some psychological forces that may help explain lack of enthusiasm for these products among the majority of older homeowners. We also focus attention on impediments to market development that originate in the legal, regulatory, and tax systems.
(more…)
by Andrew Caplin, Economics Professor – New York University
used with Permission
There has been considerable debate in the academic literature on the economic potential of the reverse mortgage market. Yet even the most pessimistic assessment suggests that this market should be larger than it is by an order of magnitude. We outline some of the economic forces that may help to explain the gap between the current market and its theoretical potential. These include transactions costs, moral hazard, and consumer uncertainty about future preferences. In addition, we explore some psychological forces that may help explain lack of enthusiasm for these products among the majority of older homeowners. We also focus attention on impediments to market development that originate in the legal, regulatory, and tax systems.
(more…)
by Andrew Caplin, Economics Professor – New York University
used with Permission
There has been considerable debate in the academic literature on the economic potential of the reverse mortgage market. Yet even the most pessimistic assessment suggests that this market should be larger than it is by an order of magnitude. We outline some of the economic forces that may help to explain the gap between the current market and its theoretical potential. These include transactions costs, moral hazard, and consumer uncertainty about future preferences. In addition, we explore some psychological forces that may help explain lack of enthusiasm for these products among the majority of older homeowners. We also focus attention on impediments to market development that originate in the legal, regulatory, and tax systems.
(more…)
Tags: reverse mortgage, reverse mortgage disadvantages
Posted in Articles, Still Even More | No Comments »
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