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.

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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.

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By Paula Woessner

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By Paula Woessner

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Brenda, age 65, was absolutely sick of working.She had toyed with the idea of quitting for years, but decided she simply could not afford to live off social security and her small retirement account.The IRA and savings would be drained in less than a year without income.She was a secretary for an oil drilling company executive.Her boss was not a terrible boss, as bosses go.But he was certainly a boss, and Brenda wanted to be free of someone to answer to in her golden years.

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Brenda, age 65, was absolutely sick of working.She had toyed with the idea of quitting for years, but decided she simply could not afford to live off social security and her small retirement account.The IRA and savings would be drained in less than a year without income.She was a secretary for an oil drilling company executive.Her boss was not a terrible boss, as bosses go.But he was certainly a boss, and Brenda wanted to be free of someone to answer to in her golden years.

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Helen, in late 2003, was about two years removed from losing her husband Edward. She had not handled the family finances and was overwhelmed when faced with dealing with bills, monthly income, mortgage payments, and savings. There was only about $8,000 in savings at the time of Ed’s death. Furthermore, Helen’s monthly income was about $1,600 and the mortgage payment remaining on the home was just under $800 per month.

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Helen, in late 2003, was about two years removed from losing her husband Edward. She had not handled the family finances and was overwhelmed when faced with dealing with bills, monthly income, mortgage payments, and savings. There was only about $8,000 in savings at the time of Ed’s death. Furthermore, Helen’s monthly income was about $1,600 and the mortgage payment remaining on the home was just under $800 per month.

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The following is a list of each year and the corresponding  HECM reverse mortgages for that year. The HECM or home equity conversion mortgage makes up about 90% of all reverse mortgages issued.  HECM reverse mortgages are insured by the federal government through the Federal Housing Administration (FHA).

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The following is a list of each year and the corresponding  HECM reverse mortgages for that year. The HECM or home equity conversion mortgage makes up about 90% of all reverse mortgages issued.  HECM reverse mortgages are insured by the federal government through the Federal Housing Administration (FHA).

(more…)

One question we have been asked is:
What happens to reverse mortgages as the United States housing market weakens.It is a good question.
There is no question the United States housing market is softening. Although prices may not yet be going down, and some markets remain relatively strong, as a whole the robust gains in real estate value across the country is over. Maybe not forever, but certainly for now.

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One question we have been asked is:
What happens to reverse mortgages as the United States housing market weakens.It is a good question.
There is no question the United States housing market is softening. Although prices may not yet be going down, and some markets remain relatively strong, as a whole the robust gains in real estate value across the country is over. Maybe not forever, but certainly for now.

(more…)