5 Benefits The Reverse Mortgages Offer For Seniors

First, the reverse mortgages for seniors are great products, when you have cleared, whether they will fit to you and to your circumstances. The key fact, when you start to ponder, is the need for which you have planned to take the reverse home mortgages.

1. The Usual Case To Take The Reverse Mortgages For Seniors Is The Need Of An Extra Monthly Cash.

This is also the main benefit, which you can get from the reverse home mortgage. You will get cash but you do not have to pay it back on a monthly basis. The system works in the way, that you use the equity of your home and convert the part of it into cash money.

The payments are tax free to you and you can deduct the interests, when you have paid them, after you have moved away from your home.

2. The Reverse Mortgages For Seniors Offer A Chance To Cash Out A Part Of The Home Equity.

The basic criteria for a qualification is, that you are American and age at least 62 and own your home, where you live permanently. Now you are eligible to apply for the reverse mortgages for seniors.

The needs for extra cash are many. You may want to buy a home for your child, or to use the money for increased medical bills, or you may want to travel etc. The reverse mortgages work in that way, that nobody will ask you, for which purpose you will use the money.

3. You Can Decide How The Lender Will Pay You.

Your need dictates, how the payments will happen. The alternatives are as a lump sum, as monthly payments, as a credit line or as a combination of some of these. What is the best reverse mortgage program is your own decision.

4. All Reverse Mortgages For Seniors Will Be Paid Back, When Your Home Is Sold.

This means, that the reverse mortgages do not have any monthly payments to the lender. All costs, interests and the capital will be paid back when your home is sold. The difference of the selling price and the costs belongs to you.

5. You Will Never Pay Back More Than The Value Of Your Home. When you think the reverse mortgages for seniors, note that there is an obligatory mortgage insurance.It means that if the selling price of your home is lower, than the amount of costs, the difference is paid from the insurance.

Your other assets will never be used to pay your reverse mortgage loan. You will borrow the more, the older you are, the lower is the interest rate and the more valuable is your home. Actually you can decide, whether you take the reverse loan with variable interest or with the fixed one.

Home Loan Mortgage Refinance

is ideal for home owners who are yet to clear their mortgage loans. This is especially advisable when interest rates have subsided. Refinancing simply means that the home owner takes another loan to clear off the existing mortgage loan and is left to deal with the new creditor, who, in most cases offers lower interest rates as well as a longer repayment period, allowing you to pay as little as you can afford.Home owners should however be careful not be lured so easily, otherwise they may remain in a cycle of constant borrowing every time the rates go down. Too many refinance loans may create a bad image about the borrower and he may appear as an opportunist who is out to evade the interest rates that come with the mortgage loans. When sourcing for refinance loans, the borrower should be aware of the different types of loans that exist and how they all operate, and also the terms and conditions imposed by the lender. Many of the loans that are in the market today include but are not limited to adjustable rate home loan, reverse loans, interest-only loan, option ARM loan and the FHA loans. The terms may differ slightly from one type to another. Once you are familiar with the types, you need to get to do your homework on the cost of each. Do not be easily fooled by the lenders who urge you to apply for the credit facilities from them on the basis that they will charge you nothing. The fact that they are advertising their services means that they are in business. Some of the costs you may be required to meet are application costs, administration, processing and loan inspection costs.

Understanding Reverse Mortgages

Seniors today often live with a great deal of financial uncertainty. The retirement they imagined may not be consistent with the reality they face.

Incomes are flat or declining, living and medical expenses are higher than ever and few income boosting alternatives exist.  Even those who have heard about Reverse Mortgages may be unsure about how they work or what questions to ask. As they search for information, they often turn to their financial institution for guidance and information. By becoming familiar with the product, you can be an even more valuable resource to your clients providing them with income supplementing alternatives to drawing down assets.  

 

What is a Reverse Mortgage?

 

A Reverse Mortgage is a special type of loan that allows a homeowner to convert a portion of the equity in their home into cash they can access. The funds are not taxable to the homeowner and typically don’t interfere with eligibility for Social Security or Medicare benefits. (However, in the federal Supplemental Security Income program, beneficiaries must keep their liquid resources under certain limits.) The customer retains title to the home as well as right to any appreciation in home value when the loan terminates after it is paid off. The loan remains in force until the last titleholder dies, permanently leaves the home or sells the property; the borrower can’t be forced to sell or move by the lender. The loan may be repaid at any time. But unlike a traditional home equity loan or second mortgage, no monthly payments are required. Instead of putting further pressure on an already stretched budget, a Reverse Mortgage can free a senior homeowner of monthly debt obligations.

 

Most Reverse Mortgages today are Home Equity Conversion Mortgages (HECMs) and are FHA-insured and guaranteed. Because HECMs are subject to FHA lending limits, proprietary products have also been developed to help homeowners with properties in excess of the FHA lending limits.  

 

Who qualifies for a Reverse Mortgage?

 

All titleholders must be 62 or older and own a home with some equity. There are no income or credit qualifications. Existing mortgages or liens must be paid off, but are often paid with proceeds from the Reverse. The homeowner must also remain current on insurance and property taxes, but these can also be paid with proceeds from the Reverse.

 

How can a borrower use the money?

 

The funds can be used for any purpose from making ends meet to living retirement dreams.  The top reasons for funds used given typically by borrowers are:

 

 

The amount available depends on the borrower’s age, the value of the home, interest rates and local FHA lending limits. Older borrowers can receive a higher percentage of their equity than younger borrowers. Funds can be received in a lump sum, a monthly payment or a line of credit.

 

What are the costs?

 

As with most any loan product, there are origination fees and closing costs, but they can be paid from the proceeds of the Reverse Mortgage. HECM loans also have a charge for the FHA’s Mortgage Insurance Premium (MIP). There are usually no out-of-pocket costs to the borrower.

 

What consumer protections are in place?

 

Reverse Mortgages are non-recourse consumer loans

Information on Reverse Mortgage

Almost everyone, young and old, knows about mortgages. Mortgages are a premier way for homeowners to pay for new houses, and insure safety and increased equity later on in life in case homeowners wish to sell their houses. Yet, most people don’t know about reverse mortgages, not even the people that should. Reverse mortgages are only for U.S seniors who are 62 years or older, and is a very good way for elderly people to be able to move into a new house without having to pay for monthly mortgage rates, and in fact receive money instead of spend money. However, even though reverse mortgages are incredibly beneficial to many senior citizens, there isn’t a lot of s readily available, and usually the only way to find out about these amazing plans is to already know about it, which many people don’t.

Even when willingly seeking out s, the information that is found can be confusing. However, there are many ways to gain clarity on exactly what a reverse mortgage is, if you qualify for a reverse mortgage, what kind of reverse mortgage plans are available, as well as all of the other essential information reverse mortgage applicants need to know before deciding to take the plunge.

To begin with, a Reverse Mortgage is a plan where the lender pays money to the borrower instead of the other way around (as is common with a regular mortgage plan). The lender will pay money to the borrower either in a lump sum, monthly (as long as the borrower remains in the home, and has not passed away), periodic credit lines, or a combination of these types of payments, and this all depends on the reverse mortgage plan. As the lender pays the borrower, debt on the property increases; however, if the borrower decides to sell the house, the borrower needs to move out of the house (either in the care of a family member or retirement home), or the borrower passes away, the debts will be covered by either selling the property, or by the heirs to that property taking over. If the property is sold, and the money gained is more than the debts owed, then the difference is either given to the living borrower or the borrower’s property heirs. If the money from the property is not enough to cover the debts accumulated by the reverse mortgage plan, then the borrower’s insurance will usually pay the difference upon the borrower’s death, or incapacity to live on the property any longer.

The money gained from the lender can be spent and stored virtually any way the borrower pleases. However, if an existing mortgage on the household needs to continue being paid off, then the borrower must pay for that with the reverse mortgage money. Also, if a person buys a house on a very good piece of property that increases in value, and in turn increases in equity, then that person may even be able to take out one or two more reverse mortgages in addition to the one the person already has.

Even with the information above, the specifics of a Reverse Mortgage, such as how much money can be borrowed, what kind of payment plans are available, and if you qualify, are still too numerous to count. However, Fannie Mae, Wells Fargo, and other companies who offer this type of mortgage are required by law to provide reverse mortgage applicants financial counseling services for absolutely free, this allows people who are unsure, or just want to learn more, the ability to gain more s.

So, in order to find out if a reverse mortgage is good for you, as well as what kind of plans are available, and how to calculate your eligibility for reverse mortgage loans, it’s important to utilize the free financial counseling service applicants receive. And, as always, carefully read what each reverse mortgage plan says with a friend, spouse, or trusted accountant, and always make sure to compare services. This will guarantee senior citizens get the most s, and pick t he best personal plan.

For more information please visit our website on Reverse Mortgage.

Reverse Mortgage Pros and Cons

With any situation in life it’s important to weigh the pros and cons, especially in financial situation. If a person does not weigh the pros and cons of a financial situation, then that person may find themselves in debt, or without sufficient funds to live on. So, when understanding this, it is perfectly reasonable to understand why so many qualifying senior citizens are apprehensive about what are called Reverse Mortgages. Reverse mortgages are mortgage loans only available for senior citizens who are 62 years of age or older. Reverse mortgage loans require the lender to pay the borrower (homeowner) instead of the other way around (which is common in regular mortgages).
For senior citizens 62 years or older that qualify for reverse mortgages, it’s easy to immediately notice the pros of the loan. However, since senior citizens have so much more experience under their belts than other younger Americans, it is common that they would want to know more information in order to further weigh the . However, the more a senior citizen weighs the , the more that same citizen will realize there are no cons, and only pros. How is that possible? Well, read more to find out.
First of all, the money that is paid to the homeowner by the lender is un-taxed, and does not need to be paid back. Also, the homeowner can do whatever he or she wants with the money received, and can figure out a payment plan consisting of a One Lump Sum, monthly payment, periodic line of credit, or a combination thereof. The pros of a debate become more evident when the applicant understands that his or her house will never be in danger of being taken away, which is completely contrary to the fear of foreclosure with a regular mortgage loan. Unless the homeowner willingly decides to sell his or her home, then the only way the home can be sold is either upon death, or upon incapacity to live in the home for more than 12 months.
Yet, there must be some kind of disadvantage, right? After all, the reverse mortgage loan is still a loan, and loans need to be paid back somehow. This is true, reverse mortgage loans do need to be paid back, but they are paid back through the proceeds generated by the sale of the house. If the house sells for less money than the loan amount due, then the mortgage insurance will pay it off. If the house sells for more money than the loan amount due, then the existing homeowner or heir(s) will pocket the difference. It’s clear that the debate of is clearly won by the overwhelming amount of pros, and the forfeit of the cons. Also, with un-taxed revenue being receive without having to work, the senior citizen will be able to enjoy life a lot more, and spend time with people he or she loves, as well as be able to spend time doing things he or she was not able to do before when bills were a problem.
For more information please visit our website on Reverse Mortgage

Fannie Mae?s Reverse Mortgage

Many senior citizens may find themselves in a tough decision when considering moving from their current location. When a man, woman, or couple are enjoying their golden years, the last thing they want to do is worry about a monthly mortgage payment. Yet, many retired citizens, even if they are relatively well to-do, are not able to hand out immediate cash to cover the cost of a new house. The fact that mortgage payments are all but obligation for people looking to purchase a new home is very stressful for senior citizens who simply want to be near family, grandchildren, or a dream location, and relax by enjoying carefree days. Yet, mortgages are a fact of life, right? Well, technically yes, but there is a better option available strictly for society’s beloved senior citizens, our grandmas and grandpas, our elders and wise men/women: Fannie’s Mae’s Reverse Mortgage product.
Fannie Mae is the nation’s largest home mortgage investor. However, Fannie Mae also invests heavily in reverse mortgages. Reverse mortgages are payment plans that work oppositely from regular mortgages. For example, instead of the homeowner having to make monthly payments to a lender, the lender is the one who makes the payments directly to the homeowner. Reverse mortgages are available in every U.S state, but only for citizens 62 years or older. And, although there is a federally insured system for reverse mortgages called the Home Equity Conversion Mortgage (HECM), Fannie Mae has managed to improve the plan by implanting the nationally available “Home Keeper Reverse Mortgage”
Home Keeper is similar to standard reverse mortgage plans in most aspects, but it differs in the fact that Fannie Mae’s plan has more benefits. For example, “Home Keeper Reverse Mortgages” include all of the regular aspects of a reverse mortgage such as the following: homeowners are paid either in lump sum, monthly payments (as long as the borrower occupies the home as his/her principal residence), line of credit, or a combination thereof. If the homeowner becomes deceased, has to move out into another’s care, or decides to sell, then the lender is paid back the reverse mortgage loans by selling the property, and keeping the money. If the property is sold for more than the due loan amount, then the difference is given to the homeowner, or heir(s), if the property sells for less money than the due loan then insurance usually covers the difference.
The added benefits with Fannie Mae’s “Home Keeper” reverse mortgage plan is the ability for people to purchase a new home in one single transaction, but without the out-of-pocket cash. This gets rid of any new monthly mortgage payments that must be paid in part by the reverse mortgage loans, and aids in senior citizens keeping more of the sales proceeds from their old house, or even a heftier amount of savings that can be used for other purposes.
So, if a senior citizen sells his or her home, and makes a profit, then that person can use the profit made by his or her sell to partly fund a new housing purchase. However, instead of having to either pay for the remaining costs of the new house with out-of-pocket money, and in order to avoid taking out a mortgage, then the senior citizen can actually pay for the rest of his or her new house up-front with the Home Keeper reverse mortgage. Fannie Mae’s Reverse Mortgage product affords senior citizens amazing benefits by providing all of the conveniences of a reverse mortgage and more. Now you can relax and enjoy life to the fullest without having to worry about those pesky mortgage payments, or how you are going to pay up-front for a new house out of a savings account. After all, you need to have plenty left for spoiling the grandkids when they come to visit your beautiful new house.
For more information please visit our website on Reverse Mortgage

Reverse Mortgage Calculator

Reverse mortgages, which are mortgages designed specifically for citizens who are 62 years or older, can be rather confusing to many people. Although the surface aspects of reverse mortgage loans are easy to understand, it is still difficult to determine how much money a person is eligible to receive. Also, many people would much rather have a basic idea of what they are going to be able to get from a particular reverse mortgage lender beforehand than to have to suffer through all of the sales pitches that will no doubt be thrown during an innocent inquiry

First of all, it’s important to know the basics of what a reverse mortgage is. Reverse mortgage loans differ from regular mortgage loans in two primary ways, the first of which is the fact that reverse mortgage loans are only available to citizens 62 years or older, and second of which is that the lender of a reverse mortgage loan pays the borrower, instead of the other way around (as is common with a regular mortgage loan). This means that people who have a reverse mortgage loan are actually paid in a one lump sum, monthly increments (assuming the borrower remains in the household as a principle location), periodic credit lines, or a combination thereof. The borrower is able to do what ever he or she wishes to do with the money. If and when the borrower becomes deceased, must move somewhere else for care by family or retirement home, or decides to sell, then the lender retains all the money made from the property’s selling amount as return for the reverse mortgage loan. If a person’s property sells for more than the loan amount due, then the borrower or heir(s) receives the difference, if the property sells for less than the loan amount due then insurance will cover the different.

For many people, it is hard to determine ahead of time how much money they are eligible to be loaned from a reverse mortgage lender. Luckily, there are s located online, and on many different sites. s are a fast and convenient way for citizens interested in applying for a reverse mortgage to roughly determine how much money they can receive. For example, AARP’s website has a , all that a person must do is enter in when he or she was born, when the person’s spouse or other coworker was born (if available), a rough estimate of how much the person’s house is worth, and the person’s zip code. Walla! Four simple questions and you have a better idea of what kind of amazing benefits you can receive from a reverse mortgage. s are usually incredibly accurate, and take barely any time to operate.

For more information please visit our website on Reverse Mortgage

Wells Fargo Reverse Mortgage

Reverse mortgages are mortgages loans designed specifically for citizens who are 62 years of age or older. A reverse mortgage loan is one of the many benefits afforded to senior citizens in to allow them to live out their wonderful golden years in peace, tranquility, and above all else, fun. Most people are familiar with mortgage loans; this is because that almost all current and future homeowners are not able to pay for a house directly up front with out-of-pocket funds. So, almost everyone who is looking to purchase a house has to take out a mortgage. What continues is common knowledge, once a mortgage loan is taken out on a house, then the homeowner(s) must then immediately begin paying back the loan, which usually occurs in monthly payments. However, reverse mortgages are, well, normal mortgages that are completely reversed.

In a regular mortgage loan a person has to pay off his or her monthly debts to the mortgage lender, but in a reverse mortgage it is the lender who pays the homeowner. America’s leading reverse mortgage lender, as well as the nation’s most trusted, is the Wells Fargo Company’s reverse home mortgage. s guarantees reliability to senior citizens interested in this type of mortgage loan. In addition, services are just as reputable as Wells Fargo itself (the likes of which is a nationally recognized and longstanding company specializing in mortgage loans).

A allows U.S citizens who are 62 years or older to be able to buy a new home without having to take out a new regular mortgage loan, or to pay out-of-pocket in order to obtain the house. Instead, a senior citizen can get rid of the headaches that come along with paying monthly mortgage fees by instead having money loaned to them in a lump sum, a monthly payment (assuming the homeowner continues to reside in the home, and does not become deceased), periodic credit lines, or a combination thereof. What the homeowner does with the money being received from the lender is up to the homeowner, unless of course the homeowner needs to continue paying off an already established mortgage, in which case some of the funds from the reverse mortgage lender must be used in order to pay the monthly mortgage payments.

You may be asking yourself why senior citizen is allowed to indeed receive money from a lender instead of pay money. The explanation is simply, when entering into a reverse mortgage the homeowner is giving the lender the right to take the proceeds from the sell of the home as payback for the money lent. So, if the homeowner must move out of the house and into the care of family, friends, or nurses at a retirement home, or if the homeowner becomes deceased, or if the homeowner wishes to sell the house, then the lender will receive the proceeds from the housing sell.

If, after the sell of a house, the amount of money made exceeds that of the loan amount due, then either the existing borrower or heir(s) will receive the difference. If the amount of money made falls short of the loan amount due, then the insurance company usually pays the difference. s are perfect for senior citizens who wish to move closer to family or friends, or perhaps to a more convenient and placid location, or maybe even a dream spot. Either way, no senior citizen wants to have to worry about mortgage payments, especially after a long life of bill paying has already been dealt with, so, why not take a load off with a ? Enjoy your life, and for once start receiving some money from the lenders, instead of giving money.

For more information please visit our website on Reverse Mortgage

Applying for Reverse Mortgage

Senior citizens will be happy to know that they don’t have to pay monthly mortgage fees anymore when they hear about reverse mortgage loans. Reverse mortgage loans, which are only available for citizens 62 years old or older, are mortgage plans that don’t require the borrower to pay monthly payments. In fact, the borrower pays nothing at all. Instead, the borrower will receive money from the lender, and the lender will be paid back by the proceeds of the house sale. Reverse mortgages are designed for senior citizens, because people know that when living in those glorious golden years, people have more important things to do than worry about possible foreclosures and mortgage payments; important things such as spoiling the grandchildren or working on important hobbies. loans are easy, especially since the federal government requires that all reverse mortgage applicants receive financial counseling before making a decision. Financial counseling services can be provided, or chosen by the applicant, and the federal government pays for it; basically, applicants get a free lesson! In addition, what is called “reverse mortgage calculators” are available on most online sites, that offer reverse mortgage loans; reverse mortgage calculators are also available in person. A reverse mortgage calculator is a pre-application estimate of how much the applicant is liable to receive, and all that it takes to find out is to enter a few simple pieces of information such as age, spouse or work partner’s age, estimated home value, and that’s it.

When and if the senior citizen decides he or she wants to go ahead with the application process for a reverse mortgage, then that person need only find a reverse mortgage company or an individual wholesale lender. Wholesale lenders, lenders who purchase reverse mortgage plans at a wholesale price from companies like Fannie Mae, Federal Housing Authority, or Financial Freedom, can most often be searched for by state or by rating. People can do this by referring to the National Reverse Mortgage Lenders Association (NMRLA); applicants can even check the lenders’ profiles to see what other people have said about that lender’s personality, services, attitude, and helpfulness in the application process, and beyond. Companies such as the ones mentioned above also have lenders that work directly for them, which can be searched for in the same way.

By loans, senior citizens who are 62 years or older will have gone through a strict process to weed out the bad lenders from the good, until the best lender for that specific citizen’s personality is found. This will help people be better informed, be treated more respectfully, and even help people develop a nice talkative friendship relationship with the lender during the application process.

For more information please visit our website on Reverse Mortgage

Fha Reverse Mortgage Lender

The Federal Housing Administration, which is also known more commonly as the FHA, is a group that has been aiding people in getting a home since 1934. The FHA’s job is to administer the government home loan insurance program, which allows for homebuyers to qualify for a home loan, is an organization that lenders must affiliate with. In addition to offering mortgage loan insurance, FHA also offers insurance for what is called a Reverse Mortgage Loan. Reverse mortgages are only available to senior citizens that are 62 years of age or older.
Reverse mortgages are mortgage loans that a person who already owns a home can take out in order to refinance that home. In addition, reverse mortgage loans can also be taken out for senior citizens that are looking for a new home to purchase, but do not want to pay monthly mortgage bills. The way a reverse mortgage works is very different from the way a traditional mortgage works; reverse mortgages do not require the borrowers (homeowners) to pay back the loan. In fact, reverse mortgage lenders actually pay the borrowers (homeowners) instead. Lenders pay in a variety ways, the most common of which are One Lump Sums, monthly payments, periodic lines of credit, or a combination thereof. The money that the homeowner receives from the lender is un-taxed, and the recipient of the money can do whatever he or she wants with funds. This can help homeowners who already have a home and have fully paid off their mortgage, or are almost done paying off their mortgage, to receive extra money for retirement without having to work, and it’s tax-free. Also, this can help potential homeowners who are senior citizens by getting rid of the need to pay off monthly mortgage bills, and allows the potential new homeowner to receive money instead.
However, even though reverse mortgages loans allow borrowers to receive money, it is still considered a loan. The homeowner is not in risk of loosing his or her house, and the homeowner does not need to pay back the money later. Instead, the money is paid back through the proceeds generated from the house sale. The house can only be sold if the homeowner wishes to, if the homeowner becomes deceased, or if the homeowner is absent for more than 12 months. When the house is sold, the is paid back. If the house sales for more money than the is owed, then the existing homeowner or heir(s) receive the difference.
Yet, what happens in the event that the money sells for less than the reverse mortgage loan due? This can worry many people, because they may suspect that either the existing homeowner or heir(s) will have to pay back the difference to the lender. Thankfully, because of the FHA, the has no worries about whether or not the home will sell lower than the amount due, and neither does the homeowner or the heir(s). The FHA removes the risk from the lender by insuring that FHA will pay back the difference to the lender, therefore everyone is safe.
For more information please visit our website on Reverse Mortgage

Countrywide Reverse Mortgage Loans

For most people there are mortgages, for everyone else there are reverse mortgages. What is a reverse mortgage? First of all, only the most privileged American citizens are able to even qualify for a reverse mortgage loan, and these people are senior citizens that are 62 years of age or older. That’s right, only our beloved grandmothers and grandfathers who are living out their golden years can qualify for a reverse mortgage, which is a mortgage that means the lenders will pay the borrowers, instead of the borrowers paying the lenders. So, if you’re not yet a senior citizen, keep reverse mortgages in mind, but if you are a senior citizen who is looking for more time to spoil the grandchildren, receive extra un-taxed income, or move into a new house without having to take out regular monthly mortgage payments, then keep reading.
Countrywide, a company founded in 1969 and committed to breaking down the barriers of owning a home, is America’s #1 Home Loan Lender, and has already helped millions of families. Now Countrywide Bank, FSB, and Countrywide Home Loans have come together to provide senior citizens who are 62 years of age and older the best reverse mortgage plans available in America.
are loans that pay homeowners in One Lump Sums, monthly payments, periodic credit lines, or a combination thereof. The homeowners, on the other hand, don’t have to pay anything for a Countrywide Reverse Mortgage Loan, in fact, the homeowner can do whatever he or she wants with the money received from the Countrywide lender. are available for people who already have a home and are looking to refinance, or for people looking to move into a new home near family. Either way, the homeowner will no longer have to pay monthly mortgage rates, and will receive money instead.
The Countrywide lender is paid back the loan through the proceeds of the homeowner’s house when it sells. However, the homeowner is in no danger of losing his or her house. The only way the house can be sold is if the homeowner becomes deceased, is gone for more than 12 months, must permanently enter into the care of someone else at another location, or decides to sell the home. When the home sells, then anything above the loan amount due is paid back to the existing homeowner or heir(s). In contrast, if the home sells for less than the loan amount due, then the insurance will typically cover the difference.
allow senior citizens 62 years or older to be able to relax and enjoy friends and family. It also allows for senior citizens to receive extra income for exotic travel destinations, hobbies, for giving gifts to family, or for simply saving up so that family has something after the senior citizen has passed.
For more information please visit our website on Reverse Mortgage

Hecm Reverse Mortgage

Almost everyone knows what a mortgage loan is, and a good number of those people are familiar with most of the mortgage plans available. It’s a simple concept that aids millions of Americans in financing new houses by taking out a loan and paying it back in increments. However, there aren’t many people that have heard about reverse mortgage loans, this is because reverse mortgage loans aren’t for just anybody, they’re for people experiencing their golden years and who are 62 years of age or older. Yet, with any kind of mortgage, even a reverse mortgage, people need to be careful as to what service they go to. Services that offer mortgages, especially reverse mortgages, need to be reputable, they need to have been in business for a long time and have a good track record, and perhaps most importantly the lenders employed by the company must be honest, forthright, and concerned about their clients’ welfare.
(HECM) is one such reputable product, which is linked by a reputable company. HECM is the oldest and most popular reverse mortgage product, and it makes up for 90 percent of the total market, now that’s a good reputation! HECM has been available since 1989 and is insured by the federal government itself through an equally as reputable system called the Federal Housing Administration (FHS), which is part of the U.S. Department of Housing and Urban Development. Now, that is a lot of long names, and a lot of acronyms to follow, but the only thing you as a senior citizen need to remember is HECM.
With a the older you are, the more money you are eligible to receive with your reverse mortgage loan. This reverse mortgage is a mortgage where the lender pays the borrower (homeowner) instead of the other way around. Lenders pay the homeowner in One Lump Sums, monthly payments, periodic credit lines, or a combination thereof. There is no risk of losing the house in a foreclosure like there is with a regular mortgage, and the money received can be used according the recipient’s own discretion. The way a HECM loan is paid back is through the sell of the home. The home is automatically sold if the homeowner becomes deceased (unless the heir(s) wish differently) if the homeowner is absent for more than 12 months or has to move somewhere else in order to receive care with a family member or in a nursing home, or if the homeowner decides to sell. If the house sells for higher than the loan amount due then the existing homeowner or heir(s) receives the difference. In contrast, if the house sells lower than the loan amount due, then the insurance company typically pays the difference.
HECM is perfect for senior citizens who don’t want to worry about pesky monthly mortgage fees, and want to receive money instead. Also, if you’re still confused, applicants of a HECM are required by law to attend a financial counselor with no cost to the applicant; the counseling service will provide more information into HECM and the service is paid for by the Federal Government.
For more information please visit our website on Reverse Mortgage

Reverse Mortgage Tax-Deductible?

One of the newest and more innovative financial tools for the Senior Citizen, today, is the reverse home mortgage.  Already very popular, as the info on the reverse home mortgage becomes widespread, and homeowners reach retirement age in large numbers, this may become the most popular home mortgage vehicle of all.  The reverse home mortgage solves a major financial problem for Seniors, how access the equity-savings they have built up on their homes without having to sell. Let me explain what is reverse mortgage?

A reversed mortgage is designed specifically for homeowners who are age 62 and older. Through this product, you can receive loan money from your home in the form of a lump sum, regular monthly checks or a line of credit. The money is typically repaid with interest when you sell your house, permanently move away, or pass away.

Reverse mortgage loan advances are not taxable, and generally don’t affect your Social Security or Medicare benefits. You retain the title to your home, and you don’t have to make monthly repayments. The loan must be repaid when the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence. Unlike a regular mortgage, the homeowner makes no payments and all interest is added to the lien on the property.

When it comes to the issue of tax deductibility, things get a little hairy. Unlike a conventional mortgage, the accrued interest associated with a reverse mortgage is not tax-deductible in the usual fashion; it is deductible at the time the reverse is paid off.

A reverse mortgage is a type of loan in which is allowed up to a certain percentage of the full equity in a home; also called reverse annuity mortgage or home equity conversion mortgage (HECM). Reverse mortgages are often used by for retired or elderly persons. Actually all lenders reverse programs that I have seen had a requirement like that you had to be at least 62 years old. The title of your home remains in your name and the home can be left to your heirs, this is always true. Obviously the lender will build up their equity in your home as you use yours. The reverse mortgage comes to an end when the borrowers have all passed away or the home is sold, or you move out permanently. Depending on the type of that you chose, a certain percentage of the home’s value can be reverse mortgaged. Fortunately the target audience is often no longer full time employed anyway; lenders will not have any income or credit score requirements to qualify for a reverse mortgage. Both the upfront expense of a reverse mortgage (loan origination fee) and the interest accrued over the life of the reverse mortgage are added to your reverse mortgage balance. So you don’t actually pay these items. The IRS states that these expenses since they are not actually paid cannot be deducted until the reverse mortgage matures. This is the case when you sell your home or used up all equity.

Reverse mortgages have helped hundreds of thousands of homeowners improve their quality of life in retirement. A Reverse Mortgage can help you retire more comfortably. It can provide you with money when you need it most. No Monthly Mortgage Payments, Easy Qualification, Tax-Free Money and No cash needed for closing costs. Can it get any better? If you’d like to find out how  much money you qualify for and if you’re eligible, give us a call at (800)630-0650.

Tim JacobsGolden Years Mortgage SolutionsYour Money

Reverse Mortgage Lender

Reverse mortgage loans are only available for citizens who are 62 years or older. These loans differ from regular mortgage loans in that the homeowner does not pay monthly fees, but instead is paid by the lender. The lender pays in a lump sum, monthly, by periodic credit line, or a combination thereof directly to the homeowner, or “borrower”. Citizens who obtain a reverse mortgage are not in risk of loosing their house, and are able to do whatever they please with the money being received from the lender. The lender’s security is based upon the homeowner’s house itself. If the homeowner becomes deceased, is absent from the house for more than 6 to 12 months (or in the care of someone else such as family or a nurses at a retirement home at another location), or if the homeowner decides to sell his or her house, then the lender retains the proceeds of the housing sale. The proceeds from the housing sale are usually effective in paying off the reverse mortgage loans made to the previous homeowner. If the house sells for more money than the loan amount due, then the current borrower or heir(s) receives the difference. In cases where the house sells for less money than the loan amount due, then the insurance company usually pays the difference.

A will come in all types, and it can be difficult to not only make the decision to choose a reverse mortgage, but to also gain information and find an honest and decent . The way to tell if a is reliable is by finding ones who are connected with some kind of national organization such as Fannie Mae, Wells Fargo, FHA, and Financial Freedom Plan. In addition to being a part of a nationally reputable organization, it’s important to know the track record of a . Often times a ’s record profile can be found on the company he or she works for, and there are also many sites that allow people who were previous clients of s to give their feedback on that particular lender’s abilities.

Senior citizens should always heavily scrutinize a , and not be afraid to compare lenders until he or she finds the right one. A good will be a person that helps in determining the right plans for you as a person. The lender should be courteous, respectful, and patient. In addition, the lender should always answer questions directly, as well as not ignore a single question. Another attribute that is a mark of a good is one who takes time out of his or her personal lives in order to check up on you, see how you’re doing, check if you’re in good health, and make sure that you understand everything clearly.

For more information please visit our website on Reverse Mortgage

How Do You Know If You?re Eligible For A Reverse Mortgage?

How do you know if you’re eligible for a reverse mortgage? Well let’s start out first with what a reverse mortgage is. A reverse mortgage is a loan that allows older homeowners to access the equity in their homes. Instead of making monthly mortgage payments to reduce your debt, you eliminate your monthly payments and actually get money! Reverse mortgages are an option for people who want to turn substantial home equity into cash.

Just like a traditional mortgage, a Reverse Mortgage comes with fees, terms and qualifications for eligibility. You have to be age 62 or older, have a single-family home or other approved property and own the property. You also must live in the home as your primary residence, make the reverse mortgage your first mortgage or you can pay off existing loans with proceeds from your reverse mortgage.

You must also continue to qualify after the loan is made. You should check your reverse mortgage agreement for details, yet generally you have to continuously use the home as your primary residence and keep current on the taxes, insurance, maintenance, etc.

After knowing that you are eligible for a Reverse Mortgage, you’ll want to know how much it will cost you. Like all loans, reverse mortgages have costs. Reverse mortgage interest is the interest you pay on the borrowed money and there may be other costs as well. Most costs can be bundled with the loan so you do not pay out of pocket.

You may be wondering how it works? It’s actually simple, reverse mortgages pay you in a variety of ways. You can receive a lump-sum, periodic payments, a line of credit, or some type of combination. Lump Sum is the easiest. You get the loan balance all at once. Do with it what you will, yet there may not be more for you tomorrow. If you sign up for a periodic payment plan, you’ll get regular payments. These payments might last for a number of years (10 years, for example), or until your loan comes due (often as a result of your death or your moving out of the home). If you don’t know exactly how much you’ll spend or how soon you’ll need it, the line of credit option may make sense.

Some reverse mortgage lines of credit are

Reverse Mortgage Income After Retirement

As you approach retirement age you may want to think about getting a reverse mortgage loan to supplement your retirement income. After going through a long and tiring life filled with hard work, you may look forward to retiring with a stable and steady stream of income and being able to live off it comfortably. For many Americans, this means income derived from retirement plans, Social Security and any investments they may have made during their working lives.

One of the other most popular and widespread ways of supplementing retirement income is to take out a reverse mortgage on your property. There are many banks and reverse mortgage lenders in the market today that provide reverse mortgages, and the market has become very competitive which makes the programs more beneficial for the customer.

We know we should begin planning for retirement early. To ensure you survive retirement comfortably it is best to plan as early as possible. For many, the best way to enhance your retirement plan is through a Reverse Mortgage. A reverse mortgage is quite simply a way to access the equity in your home to provide you tax free income with no monthly payments. Most importantly senior home owners age 62 or above are federally eligible to apply and qualify for reverse mortgage loans after going through a mandatory counseling process.

There are several options for receiving payout from a reverse mortgage. You can receive fixed, monthly payments for a period of time; get a lump-sum payment; open a line of credit that you can draw against; or you can receive some combination of these options. You don’t have to stick with a payment option forever. You may be able to change your payment option in the future.  The money doesn’t have to be paid back to the lender during the lifetime of the borrower. The principal and interest become payable only when the home owner passes away or moves out of the reverse mortgaged property.

The  additional or extra line of income derived from a reverse mortgage can help put seniors at financial ease and enable them to gain confidence about their social position and spending ability in retirement. The money can be used any way they see fit – be it for travel, vacation, medical expenses, education expenses of grand children, home remodeling, anything!

The additional level of available money from a reverse mortgage offers senior home-owners peace of mind and stability so they can live their pre-retirement lifestyles without any fear of cash deficiency.

Reverse mortgage income is not taxable either; for the government considers it inappropriate to tax you on property you already own .Taken in perspective, reverse mortgages are good as an additional line of income for the senior home-owners looking to improve upon their lifestyles with a more money in their pockets. The homeowner doesn’t pay a mortgage; instead he receives payment from the lender in exchange for a stake in the value of the home. Check how much you can get from your Reverse Mortgage? We’ve helped thousand of senior homeowners solve their financial questions, it’s time we help you.For FREE reverse mortgage counseling, Give us a call. We will be more than happy to answer any questions that you may have. Or if you’d like to find out how money you qualify for and if you’re eligible, feel free to give us a call at (800)630-0650.Tim JacobsGolden Years Mortgage SolutionsYour Money

Whats Wrong With Reverse Mortgages

Red flags are warning signs. If you see the warning sign then you won’t fall off the cliff, hit the pothole, or go where no one should go. Take a look at the red flags listed here and don’t see these as negative aspects of reverse mortgage but just reminders of the fact that when big money is involved, there are a few people out there who might get a little greedy now and then. Surprising, yes but it’s true. Reverse mortgages can be wonderful tools for seniors trying to make ends meet by putting their home equity to work. And, like anything else, you’ve got to know where those potholes and cliffs are to get to where you want to be. Here are some reverse mortgage red flags to keep an eye out for.

Red Flag #1. Complicated paperwork may have unforeseen consequences. If you don’t understand the document, you won’t understand the consequences. Take the time to get proper guidance, second opinions, and a review of appropriate alternatives.

Red Flag #2. High cost of a reverse mortgage may outweigh the benefits of alternatives. As in any loan, there are going to be associated fees and costs. These should be clearly spelled out up front. Consult your lawyer, accountant, or other trusted adviser to review any loan application before making a major financial commitment like a reverse mortgage.

Red Flag #3. Uncertain benefits. The strange thing about reverse mortgages is that you cannot calculate the true cost of this loan because it depends on how long you are going to live. But, if you want to pass anything to your heirs, it’s worth considering the alternatives. There is no way to predict the home appreciation and future interest rates so consider the reverse mortgage carefully. Yes, payments come to you tax free but the debt on that asset is going up. This may be fine as long as you live and as long as you live there. Again, just know your options.

Red Flag #4. Tight-lipped lenders. Lenders who don’t fully disclose fees and terms are a big problem. As we’ve just seen in the sub-prime lending mess, many consumers didn’t understand what they were getting into. Some sleaze-ball lenders have gone so far as to work themselves into the deal to gain a large percentage of the property’s appreciation. Ask your lender if they are attempting to gain any percentage of the appreciation as part of their profit.

Red Flag #5. Forcing borrowers to buy additional financial products such as variable annuities. In this case, consumers can lose their principle and the earning potential of that money. Sometimes it’s alright to combine financial products but if you do, please double check the terms with someone who understands both types of products.

Red Flag #6. Numerous front end and back-end fees can be exorbitant. Artificially inflated fees raise the cost to the borrower and deflate consumer benefits fast. Oh yes, the definition of exorbitant can be debated all day long but that is exactly why you need to take the time to educate yourself, get several reverse mortgage proposals, and obtain advice from a trusted expert like your accountant, lawyer or financial adviser.

Red Flag #7. Reverse mortgage counselors imply that they are there to protect the interest of the seniors applying for the loan. This may be legitimate but if they present themselves as a counselor yet, have an affiliation with the lender; there is an inherent conflict of interest. Unfortunately the government still allows this practice. Your tax advisor doesn’t work for the IRS does he? Well then your reverse mortgage counselor should not work for the lender he is trying to protect you from.

Red Flag #8. Borrowers should not pay a referral fee for an agent just for the privilege of introducing you to a lender. That fee has been as much as 10% of the loan amount in some cases. Don’t pay referral fees or finder’s fees for reverse mortgages just find a new agent or broker.

Red Flag #9. You don’t know your lender. Laws and recourse vary from state to state. It’s a good idea to know your lender. Get referrals from family and friends and ask for references from the agent you are talking with.

Red Flag #10. HUD might be a DUD. You cannot assume that because Uncle Sam is guaranteeing some aspect of a reverse mortgage that it is safe or good for your situation. HUD does provide some helpful and free info on its website but it is very limited. If the sales rep says this loan is safe because it’s backed by the U.S. Government, don’t be overly impressed.

Red Flag #11. Information is withheld. When Total Annual Loan Costs (TALC) rates are not disclosed, be careful. When information is withheld and real costs and fees are not fully explained up front, there’s trouble on the horizon.

Red Flag #12. If a borrower’s ability to make a major decision is in anyway questionable, everyone including the agent, the lender, and family members should slow down and get additional professional assistance. If you are dealing with agents and lenders with any degree of integrity they will certainly offer any senior who doesn’t understand the consequences of the reverse mortgage, the resources and time to get more assistance. Families should work together to keep tabs on senior family member’s financial needs and lend a helping hand and a second set of eyeballs to major financial decisions such as reverse mortgages.

Red Flag #13. Alternatives to reverse mortgages are not known. There are several safe and secure alternatives that should be considered.

The bottom line to reverse mortgages is this. There are reverse mortgage alternatives beyond lines of credit or selling your home. Get the facts, recognize the red flags and take the time to do your homework.

Elder abuse is an ongoing concern when it comes to reverse mortgages or other financial products. The best way to fight this problem is to punish lenders who have no ethics and to teach seniors and their family members the facts and the alternatives. Families need to keep closer tabs on senior members and do the homework when it comes to reverse mortgages.

The Reverse Mortgage Association: Here To Help

If you are a US homeowner approaching retirement, and have already realized that your pension, social security, or 401K will not be enough to let you maintain the lifestyle you have been able to afford during your working years, you may be considering a reverse mortgage. If you are, you should take advantage of the services offered by the National Reverse Mortgage Association.
Started in 1997, the National Reverse Mortgage Association has a decade of experience in assisting both seniors who want to use reverse mortgages to help fund their retirements, and lenders who want to offer reverse mortgages as part of their services.
For homeowners who have made the decision to preserve their financial independence through reverse mortgages, the Reverse Mortgage Association offers educational programs. For lenders who wish to offer reverse mortgages, the Reverse Mortgage Association has a Code of Conduct designed to safeguard interests of older homeowners, and which it expects its lenders to honor. It has also established, and strongly recommends for reverse mortgage lenders, training in effectively dealing with the needs of older borrowers.What Is A Reverse Mortgage?
The programs overseen by the Reverse Mortgage Association help homeowners over the age of sixty two understand how to get a part of the home equity they have accumulated as tax-free income, while still keeping full title to their homes. Taking advantage of a reverse mortgage will allow a homeowner to avoid the monthly payments which result from borrowing against home equity in the traditional manner. The Reverse Mortgage Association also oversees the lenders who actually write the reverse mortgage loans and make the payments to the homeowners.
Reverse mortgages are ideal for senior homeowners because they will not have to be paid off until the homeowner is no longer living in the home at least half of the year, or decides to sell the home, or passes away. And in the event that the home sells for a price in excess of the balance borrowed against the home mortgage, the homeowner or his or her heirs will receive the extra funds.Watchdogging The Lenders
The future demand for reverse mortgages in the US will only grow as the Baby Boomer generation enters retirement, so it is becoming increasingly essential that older homeowners have access to trustworthy lenders. The Reverse Mortgage Association has taken of the task of investigating the credibility and competence of reverse mortgage lenders so that they will reflect well on their profession.
By sponsoring an ongoing program of yearly seminars for its lenders, the Reverse Mortgage Association ensures that its members are kept up to date on all the aspects of the reverse mortgage industry, including the latest loan products and issues affecting senior borrowers. For more info see http://www.i-reversemortgages.com/Reverse_Mortgage_Loans on Reverse Mortgage Loans.
If you are facing retirement and struggling to cope with a vanished pension, badly managed IRA or 401K, and soaring health insurance premiums, your financial future may seem bleak. Taking out a reverse home mortgage from a member of the Reverse Mortgage Association will assure you of getting help from a lender who operates with integrity, and let you rest a little more easily when your retirement arrives.

Bargaining For The Best Reverse Mortgage Rates

Reverse mortgage rates are not different form traditional mortgage rates, and when you are applying for a reverse mortgage you should make every effort to find the lowest reverse mortgage rates you possibly can. While comparison shopping takes time, you can help your own cause by taking advantage of the reverse mortgage calculators available on one of the many reversed mortgage Internet websites.
You will have to pay interest on your reverse mortgage loan regardless of whether you receive your money as a single lump sum, in monthly installments, or as advances on a credit line. In the US, reverse mortgage rates are tied to the US Treasury rate, and like all adjustable mortgages rates will fluctuate as it does.The Margin Is The Difference
Because of this, any money you save on your reverse mortgage rates will be as a result of the competition among lenders. Their margin–the amount they charge in interest over and above the variable treasury-based reverse mortgage rate, will vary from company to company. Lenders can adjust their rates anywhere from once a month to once a year. Fixed-Rate Reverse Mortgages
Fixed-rate reverse mortgages are the exception to the rule, although they have become more available in recent months. One limitation on a fixed-rate reverse mortgage is that the borrower must take his or her money in a single payment; monthly installments and lines of credit are not permitted. Fixed reverse mortgage rates, in early 2007, were hovering in the low end of the six percent range, not including the lenders’ margins.
Your fixed mortgage rate will have nothing to do with your credit history or your income. Even low-income senior citizens who have paid for their homes are eligible for reverse mortgages; they, in fact, are the individuals for whom reverse mortgages are primarily intended. For more info see http://www.i-reversemortgages.com/Reverse_Mortgage_Brokers/ on Reverse Mortgage Brokers.
You can get a better idea of reverse mortgage rates by researching both online and brick-and-mortar reverse mortgage brokers; many brokers have both websites and offices. Find the best online rate you can, then take it to the reverse mortgage lenders in your area and use it as a negotiating tool if necessary.
You can find a list of legitimate reverse mortgage lenders close to you by doing a search on the National Reverse Mortgage Lenders Association-NRMLA–website, searching by the name of the state in which you live, and then whittling down the results to lenders in your area. All NRMLA lenders are committed to upholding a Code of Conduct, which means they will deal with you fairly in the reverse mortgage process.

Live Easy With Reverse Mortgages

What are reverse mortgages and how can it help in procuring loan against property? Well reverse mortgages are loans against the equity in the home and provides tax-free cash advances to its clients. In fact, at the same time reverse mortgages requires no payments during the term of the loan. One can say that it is tax-free loan for homeowners whose mortgage has already been paid.

Since there are no monthly payments required during the life of the loan, the balance grows larger and the equity gets smaller. Well reverse mortgages are available to equity-rich senior citizens who need financial assistance for various personal and healthcare reasons. In reverse mortgages, loan repayment is not necessary until the borrower sells the property or moves to some other place or dies. In fact, its real definition would be that in reverse mortgages a lender makes periodic payments to the borrower using his or her equity in the home as a security. It is easier to procure reverse mortgages loan in comparison to other commercial or property loans from various market players or creditors. To be eligible for reverse mortgages, one has to be at least 62 of years or more, as well as own home or condominium in order to qualify for reverse mortgages. In fact, unlike other loans, reverse mortgages does not demand huge paper work or income or credit proofs. Reverse mortgages are simply based on the amount of benefit that one qualifies for, one may be eligible for a reverse mortgages even if one still owes money on his or her first mortgage.

There are various types of reverse mortgages available like single-purpose, federally insured, and proprietary and covers the benefits and drawbacks of each. The other benefits associated with these loans are that they are non-recourse ones, i.e. no matter how high the loan balance grows, the borrower or their heirs will never pay more than the home’s market value. Even the costs associated with getting reverse mortgages are similar to conventional mortgages. It only covers origination, appraisal and inspection fees, title policy, mortgage insurance and other normal closing costs. The good news is that with the help of reverse mortgages these costs can be financed as part of the mortgage. In fact, many reverse mortgages loan providers conduct counseling sessions for the people who are looking for reverse mortgages. The counselor offers information on various alternative options available in a given situation. They also assist in determining the best product available in a form of reverse mortgages.

One can additionally use reverse mortgages proceeds for daily living expenses, home repairs and home improvements schemes. The elderly can also utilize them for medical bills expenses, travel, pay-off of existing debts, education and retirement and estate tax planning; and other needs they may have. The loan amount is available in a form of a lump sum, fixed monthly payments for as long as one lives in the property, a line of credit or a combination of these options. So go ahead and apply for reverse mortgages loans.

The Reverse Mortgage Association: Answers For Seniors

The National Reverse Mortgage Lenders Association was established in 1997 to provide a variety for services for both those wishing to take advantage of reverse mortgages on their homes and lenders wishing to finance reverse mortgages.
The Reverse Mortgage Association has an educational program to aid senior citizens who have decided to take out a reverse mortgage as a way to remain financially independent The Reverse Mortgage Association has also established a Code of Conduct to which it expects reverse mortgage lenders to adhere in their dealings with senior citizens; it also has a training program in which reverse mortgage lenders are encouraged to participate.
How Reverse Mortgages Work
The Reverse Mortgage Association oversees a program in which homeowners sixty-two and older can turn a percentage of their home equity into non-taxable income while still retaining title to their homes. They are freed of the burden of a monthly mortgage payment, which they would otherwise have to accept by taking out a traditional home equity loan. The Reverse Mortgage Association oversees the activities of lenders who make the reverse mortgage payments to the senior homeowners.
A reverse mortgage does not have to be paid back until the home is no longer the borrowers’ principal residence, the borrowers pass way, the home is sold, or the borrowers leave it for good. And it the home is sold for an amount greater than the outstanding balance on the reverse mortgage, the borrowers, or their estates, can keep the difference. For more info see http://www.i-reversemortgages.com/Reverse_Mortgage_Information/ on Reverse Mortgage Information.
The Future Of Reverse Mortgages
With the Baby Boomer generation now entering their 60′s, the number of reverse mortgage loans is expected to increase dramatically. Because of that, it is more important than ever those senior citizens can trust the integrity of their lenders. The Reverse Mortgage Association has the job of verifying the quality and professionalism of reverse mortgage lenders and assuring that they will be an asset to the communities in which they do business.
The Reverse Mortgage Association holds a series of annual conferences for its member lenders, so that they can remain educated in the latest reverse mortgage issues, products, and borrower concerns.
For seniors who have been caught in the trap of dwindling IRA values, disappearing pensions, and rising health insurance costs, the idea of trying to survive in retirement on Social Security and little else may be devastating. A reverse home mortgage, from a lender who honors the Code of Conduct established by the Reverse Home Mortgage Association, could give them the secure retirement for which they are longing.

The Reverse Mortgage is Meeting the Needs of Seniors in a Big Way

In most cases the senior is looking places to find money to off set the major loses they have felt from the banking and investment crisis. The one place that is still a safe haven in many areas is the home, even with declining values. The main reason is that most seniors purchased their homes when values were mush lower before the great appreciation era. If a seniors still has a mortgage on their home and many do have a current mortgage on their home and have to make payments every month. If a senior has a first mortgage lets say just for $100,000 at a 6% rate they are putting out over $600.00 per month or $7,200 per year. This amount if they did not have to make the payment would be added to their income that they would be able to use to live.

In many cases seniors over the years when the economy was booming many took at 30 year loans and or adjustable rate mortgage and are now faced with higher payments and they are trying to stay afloat.

If a senior is faced with this problem they should really consider a Reverse Mortgage for many reasons not to mention relief from payments. In many cases not only would they be free from mortgage payments, but they would receive additional funds to use as they see fit. Under the Reverse Mortgage program they senior controls how and what they spend the money on once they have closed.

Some things never change when doing a Reverse Mortgage and that is they still must pay the taxes and insurance on their home. If a senior is use to having an escrow of taxes and insurance they maybe able to set aside the monies with the company and have them pay it yearly for them.

One thing that all seniors should be looking at is the availability to access the money that they need from their home that they paid for over the course of their lives. In the years that you will need it the most and not have to worry about paying it back in their lifetime.

Many seniors are now thinking that if they take out a Reverse Mortgage and the bank or Mortgage Company goes out of business they will be out of luck. This is not true it is protected by the FHA mortgage insurance, that if they do go out of business then Federal Government takes over and pays them the money. The Reverse Mortgage is the safest mortgage in the entire mortgage industry. Unlike a typical mortgage where a lender has many options to force your paying of the loan, the Reverse Mortgage has the full protection of the US Government that guarantees that the senior will never have to leave their home for as long as they live. This of course is providing they pay their taxes and Insurance and continue to live in the home as their primary residence.

Now in 2009 a new program is emerging within the Reverse Mortgage and this a great option for many seniors who have one reason or another sold their home or have to move to a newer location. The Reverse Mortgage purchase program is now available to seniors over the age of 62. The program is design to allow seniors to purchase a home without any mortgage payments for life. Now just to make it very clear this does not mean that a senior can purchase with no money down. This is not the same mortgage that got this country in to the financial situation that we are in where people would by a home with zero down or less in some cases.

A senior who is looking to purchase a home will have to have money to purchase a home; it is all based on the age of the person and the appraised value of the home. Let’s say that a person age 62 wants to purchase a home that is appraised at $200,000, they would need approximately 40% down payment on the home. They would in most cases be able to finance all or part of the closing cost within the Reverse Mortgage. But let’s look at it in another way! Remember the older you are the less you will need down!

If that same person wanted to purchase a home using a conventional mortgage, they would need at least 20% down and would have to qualify with at least a 720 credit score and have the income to qualify for the mortgage payment.

So let’s look at the difference!

Conventional Reverse Mortgage

Now this is what it looks like on paper for a conventional mortgage verses the Reverse Mortgage the big difference is that a senior for a Reverse Mortgage purchase they will not have to qualify for the loan they already are if they are 62 or older. Also under the conventional mortgage if a senior fails to make a payment on their mortgage they will be foreclosed on just like anyone else.

For the senior who has a mortgage currently and is worried if they are going to be able to make payments on the mortgage Think Reverse Mortgage! No Income or Credit qualifying; if think this isn’t a big deal call your mortgage banker and see what it takes to get a mortgage today.

Also this is very important issue your conventional mortgage is not guaranteed that you will stay in your home for the rest of your life!

Here is what you have to do to get a Reverse Mortgage for your home!

So if you are thinking of how you are going to make it through these hard times, waiting to see if the market will ever turn around you are loosing money in your home.

Remember this as the stock market, and real estate even stay where it is now you may never see the return of that money.

Avoiding Reverse Mortgage Scams

Reverse mortgages are gaining in popularity as more senior’s start looking for ways to supplement their retirement incomes. And as the interest in reverse mortgages increase, so are the cases of reverse mortgage fraud and scams. Many seniors are finding that they have lost thousands dollars of their hard earned equity to these reverse mortgages scams. Since reverse mortgages typically involve our largest asset (your home), this type of fraud can have a serious negative impact on your retirement. The following reverse mortgage fraud information will help you avoid becoming a victim of a reverse mortgage scam.
Reverse Mortgage Scams
The are several types of reverse mortgage scams that can end up costing you thousands and even tens of thousands of dollars in equity in your home if you become a victim.
Charging for free information on reverse mortgages
Several estate planning companies have been charging thousands of dollars for information provided free from HUD. Typically these companies charge for this information as part of an estate planning program. Seniors that sign up for these programs are unaware that these firms are collecting thousands of dollars by charging a fee of 6 to 10 percent of the total amount borrowed. These fees costs the victims $6,000 to $10,000 on a $100,000 reverse mortgage. HUD has recently issued a directive to lenders that issued reverse mortgages insured by the Federal Housing Administration (FHA) to stop doing business with these companies.
Pushing reverse mortgages as a way to pay for purchases
Some companies that sell large ticket items or services, like annuities or insurance products, may try to suggest using a reverse mortgage as a way fund these purchases. When the additional cost of the reverse mortgage is factored into the purchase, it ends up costing the homeowner much more than the benefit provided by the product or service.
Unethical reverse mortgage terms
Some lenders slip in excessive fees and terms into their contracts. These terms can have a serious effect a Seniors equity. In some cases, lenders have used shared equity or shared appreciation terms, which gives the lender the right to collect a portion of the appreciation when the home is sold or refinanced. The cost of these type provisions can run into the tens of thousands as the home appreciates. These rising cost provisions eat up equity without providing any additional benefit to the homeowner.
Protecting yourself from reverse mortgage scams
If you are looking into reverse mortgages, there are several things that you can do to protect yourself from falling victim to these types of scams.
1. Speak with a HUD approved reverse mortgage counselor. The counselor will help you understand reverse mortgages and help you evaluate your situation.
2. Obtain several offers from different reverse mortgage lenders in order to compare different options. The rule of thumb is to get at least three
separate offers so that you have a good comparison of the terms offered.
3. Make sure you understand all the terms and conditions within the reverse mortgage contracts. Your reverse mortgage counselor can guide you through
the contracts.
4. You generally have three business days after signing the loan document to cancel it for any reason.
If you suspect that a company is operating in violation of the law, let your reverse mortgage counselor know and then file a complaint with your State Attorney General’s office or banking regulatory agency and the Federal Trade Commission (FTC) at www.ftc.gov.

Debunking The Reverse Mortgage Myths

A reverse mortgage is a government sponsored product for seniors 62 and over to stay in their homes and improve cash flow. Reverse mortgages have gained significantly in popularity in recent years. While they are becoming more widely accepted, there are still many myths and misunderstandings surrounding reverse mortgages, This article will explore some of those myths.
Myth 1: Reverse mortgages are only for desperate seniors
This first myth might have been true in the old days of reverse mortgages but not today. You can use reverse mortgages for a variety of reasons from estate planning, vacations, paying for college and paying down debt. In most cases obtaining a reverse mortgages can be a very wise decision. You can even use a reverse mortgage to purchase real estate.
Myth 2: The bank takes your house
This is simply on the case. The bank does not take your house in a reverse mortgage. Banks don’t want your house. When you decide to sell your house, you simply pay off the reverse mortgage out of the proceeds of the loan.
Myth 3: Reverse mortgages are predatory
Reverse mortgages are one of the most regulated of all mortgage loans. You are required to obtain counseling before applying for a reverse mortgage and there is a 3 day right to cancel like with a standard refinance.
Myth 4: Reverse mortgages are too expensive
While some financial products like home equity lines of credit do have lower closing costs, reverse mortgages can save you money especially if the alternative is moving. Most of the added costs of reverse mortgages are for the FHA insurance, which protects your home investment. Also, the added benefit of not having to make monthly payments far outweighs the costs.
Myth 5: I can end up owing more than my house is worth.
This is simply not the case. If the property declines in value and the reverse mortgage balance is higher than the property value, FHA insurance will kick in and cover the difference. You are protected, which is very nice in a declining market.
Myth 6: Reverse mortgages cause tax penalties and can influence Social Security benefits
This is another very common misconception. Reverse mortgage proceeds are tax free as they are simply a loan. Because of this, they do not factor in to Social Security benefits.
As you can see, reverse mortgages are a great way for you to keep your house and earn some extra income in your golden years. As with any financial decision, good advice is essential. You should seek competent help for a mortgage broker or lender who specializes in the field of reverse mortgages.