How To Buy A Home With A Reverse Mortgage
Is A Reverse Mortgage Right For You?
How Lender's Set Mortgage Rates
How To Avoid Credit Repair Complications If You Are A Homeowner
Home Owners: Avoid Complications In Credit Repair
How Do I Prepare For Retirement?
How To Turn Disadvantages Of A Reverse Mortgage To Your Advantage
How To Find Wholesale Mortgage Lenders
How To Stop Foreclosure From Happening To You
Low Cost Mortgage - Perfect Mix Of Maximum Benefit And Minimum Cost Mortgage
Home Equity Loan – A Reverse Mortgage Could Provide A Comfortable Retirement!
How Economy Affects Mortgage Interest Rates
IS A HOUSING BUBBLE BREWING?
How To Get The Bank To Say Yes Whenever You Apply For A Loan Or Mortgage
Market Influence Of Interests Rates
How A Reverse Mortgage Works
Reverse Mortgage: A Dignified Way For Retirees To Supplement Income And Take Care Of Expenses
Top 5 Reasons People Get Reverse Mortgages
Discover what information you need regarding the understanding and use of reverse mortgage supplement to retirement.Once you’ve done your research on reverse mortgages and gained a more complete understanding of .....
For many Americans reaching the retirement age, the equity build
up in their home is their only real asset. Reverse mortgage is a
way to tap into this asset and create a stream of income needed
for retirement or take care of an unexpected financial need that
is usually related to health care costs in the elderly.
Reverse mortgage is not like a refinance, equity loan or a
second loan on your home and there are some pitfalls.
So what is a reverse mortgage? As the term implies the flow of
money is reversed. Instead of the homeowner paying the lender on
a predetermined schedule, the lender pays the homeowner and
there aren't any payments due until the home owner moves or
dies.
How did reverse mortgage start? Roger Maris broke Babe Ruth's
single-season home-run record in 1961 but like most things in
life, a single act of kindness has a much longer longevity and a
more widespread influence than that of fame and ironically these
acts of kindness remain obscure.
The history of reverse mortgage can be traced to Nelson Haynes
of Deering Savings & Loan (Portland, ME) who made the first
reverse mortgage loan to Nellie Young, the widow of his high
school football coach. This event was reported to be motivated
by kindness and started a chain of events over the following
Advantages And Disadvantages Of Reverse Mortgages
You're getting older and you can see all the equity sitting in
your home, but you need money now! .....
You're getting older and you can see all the equity sitting in
your home, but you need money now! .....
forty years to extend a helping hand to today's retirees.
Reverse mortgage helps many retirees cope with their financial
difficulties and more importantly,helps them to have a way to
retain their independence and dignity. And retirees are reaching
for this solution in record numbers. According to the National
Reverse Mortgage Lenders Association in 2004, lenders originated
a record 37,829 HECM loans during the most recent federal fiscal
year - a 109 percent increase over the 18,079 loans closed the
previous year.
Why would a lender do this? The act of kindness may have started
this idea but lenders are not charitable organizations and they
will not be in business long if they don't have a return on
their investments. In this case, they calculate the amount they
lend based on the value of your home, projected appreciation,
your age and a number of other factors. They expect to get paid
the money they have lent plus the interest when the homeowner
moves or dies.
What are HECM Loans? Federally-insured home equity conversion
mortgage (HECM) is the most common of reverse mortgage loans
that the U.S. Department of Housing and Urban Development
started offering in 1989.
Who cares about federal insurance? In traditional loans, when
you borrow the money, you have the cash in hand and the lender
This is more information about reverse mortgage supplement to retirement to help you best understand and how it can help you.
has taken all the risk secured by your home. However in a
reverse mortgage, you may plan to receive a monthly payment over
a period of time. What will happen if the lender is no longer
around to pay you?
This is why the federally insured reverse mortgage ads another
dimension of safety and peace of mind. This peace of mind also
comes with a price tag. HECMs limits the maximum loan amount a
homeowner can borrow.
What about Non-HECM? Many lending institutions offer this
category of reverse mortgages and their limits are usually
Creative Home Equity Strategies For Retirement
The baby boom generation is nearing retirement and it is clear that millions of aging .....
higher than that of HEMD. However they are not federally insuredThe baby boom generation is nearing retirement and it is clear that millions of aging .....
and they can have a much higher expense associated with their
processing.
Can any one qualify for a reverse mortgage?
The eligibility requirements for a reverse mortgage are:
* You are a homeowner
* You are 62 years of age or older
* You own your home outright, or have a low mortgage balance
that can be paid off at the closing with proceeds from the
Buying A Home For The First Time Or Needing Some Cash? Learn How And When To Use A 1st, 2nd Or Rever
reverse loanThroughout your home owning experience, you may run into unexpected events that cause you to use your options of .....
* You live in the home
* In case of HUD, you are also required to receive consumer
information from HUD-approved counseling sources prior to
obtaining the loan. You can contact the Housing Counseling
Clearinghouse on 1-800-569-4287 to obtain the name and telephone
number of an HUD-approved counseling agency and a list of FHA
approved lenders within your area.
* Upkeep of property taxes and staying out of bankruptcy are
also required.
How much money can I borrow? The amount of money you can borrow
is based on a different set of formulas than the traditional
mortgage qualifications. Your age, the value of your home, the
current interest rates, and the loan costs impact the amount.
Older individuals with more valuable homes in lower interest
rate environment can borrow more.
What types of homes are eligible for reverse mortgages? Single
family, two-to-four unit properties, townhouses, detached homes,
units in condominiums and some manufactured homes are eligible.
However various restrictions apply to all with most significant
being that you own them, live in them and have kept them in
reasonable condition.
What about my heirs? If death occurs while you still owe money
to the lender, your heirs are obligated to pay the borrowed
amount, plus interest and other fees, to the lender. They
usually do this by selling the house. Whatever remains after
paying the lender belongs to your heirs. The loan cannot be
passed along.
What are my borrowing options?
You have five options:
* Tenure - equal monthly payments as long as at least one
borrower lives and continues to occupy the property as a
principal residence.
* Term - equal monthly payments for a fixed period of months
selected.
* Line of Credit - unscheduled payments or in installments, at
times and in amounts of borrower's choosing until the line of
credit is exhausted.
* Modified Tenure - combination of line of credit with monthly
payments for as long as the borrower remains in the home.
* Modified Term - combination of line of credit with monthly
payments for a fixed period of months selected by the borrower.
What about reverse mortgage scams? Like most other scams
directed to senior citizens, telemarketing is on top of the
list. Never agree to anything over the phone, especially on the
first call and do not give personal information, financial or
otherwise, over the phone.
There is never a cost associated with getting information on
reverse mortgages. This information is available for free. Ask
for written copy of everything that should include an address
and a phone number so that you can confirm the data.
* DISCLAIMER: Vishy Dadsetan, FreeCreditReport.ws or My Favorite
Shop, Inc. do not endorse any reverse mortgage product or
lender. This article and website does not provide legal,
accounting, or other professional services. If legal or other
expert assistance is required, the services of a competent
professional should be sought. Although Vishy Dadsetan has made
every effort to ensure the accuracy and completeness of the
information contained in this site, it assumes no responsibility
for errors, omissions, inaccuracies, or inconsistencies.
About the author:
Vishy Dadsetan writes articles that can actually help your
clients. Articles that make sense. Articles just like this one.
For more information about the following refer to
FreeCreditReport.ws
http://www.freecreditreport.ws/homemortgage/mortgage-refinancing.
html
http://www.freecreditreport.ws/homemortgage/reverse-mortgage.html
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