Sunday, 21 August 2011
reverse mortgage loan
Reverse Mortgage Loan
Do you have a situation, where you just got a sudden and regular extra bill to pay, but you think you do not have any source to get that money? Maybe a medical bill or a need to repair your house?
These are serious situations but luckily there is help closer, than you have imagined. The special senior loans called the reverse mortgages can help you
If you are age 62 or over and planning to get cash out of your existing home equity, it's time to step into the world of the reverse mortgage loans.
The reverse mortgage loans can be complicated for most seniors. At the same time, it is very important for an American senior to understand, how does a reverse mortgage work to be able to get the best reverse mortgage deal and to avoid typical but costly mistakes.
From this website you will get a useful crash course about the reverse mortgages. We will go through the reverse mortgage loans that are available, how do they work and how you can utilize the official counseling.
You will find money saving tips and proposals about how to guarantee, that your reverse home loan experience goes smoothly.
What is Reverse Mortgage?
To put it simply: you get cash money against the value of your home equity. What is different compared to the usual mortgage is, that the reverse mortgage loans work in that way, that you do not have to pay anything to the lender monthly. Instead, the lender pays you monthly!
These products are specially planned for seniors.
Well, in the real life the reverse mortgage loans include more features. That is why it is wise to get valuable information and to prepare well for the compulsory counseling.
Read on to find out how to get the customized reverse mortgage, which will fit to you and how you can maximize the benefits of this great product!
reverse mortgages how they work 2011
reverse mortgages how they work 2011
A) Introduction to Reverse Mortgages
What is a reverse mortgage - a government insured home mortgage loan specifically designed for seniors who want/need to release equity from their home.
Who Can Qualify For a Reverse Mortgage
- must be at least 62 or older
- own a home ( primary residence )
- have equity in the home
- never have defaulted on government debt
What are the Benefits of a reverse mortgage loan ?
- keep ownership of the property
- never have another mortgage payment
- income is tax free ( proceeds/funds you receive are tax free)
- select how you want to receive your income ( monthly, lump sum, both)
- you can sell home at any time
- you can leave home for heirs
- you are not at risk for foreclosures ( you have to pay for maintenance, taxes, and home insurance as this could lead to a technical foreclosure)
“Now that you have been introduced to the HECM reverse mortgage definition, qualification process, we can cover how does a reverse mortgage work.”
Reverse Mortgage Disadvantages – this is a loan, therefore when both borrowers pass away or move homes they will pay the loan back, also there are closing costs associated with this mortgage, but by using our free service to compare multiple lenders this wont be a disadvantage.
the reverse mortgage allows you to tap into your homes equity, this money is tax free and you can spend it as you wish. This is the only mortgage which is senior friendly as it does not require you to have income or credit scores.
to find out how much you can receive visit reverse mortgage calculator
to find out more visit reverse mortgage information
What is a Reverse Mortgage 2011
What is a Reverse Mortgage 2011?
A reverse mortgage allows you to access a portion of the equity in your home to obtain tax-free cash without having to make monthly loan payments.
Reverse Mortgages safe and is Government-Insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). The reverse mortgage was signed into law as a national program in 1988 and since its inception has helped thousands of homeowners safely access the equity in their homes, helping them better enjoy their retirement years.
To be eligible for a Reverse Mortgage loan, some key requirements are:
• Be at least 62 years of age or older
• Live in your home as your primary residence and have sufficient equity in it
• Be able to pay any existing mortgages through the Reverse Mortgage
• Live in a single family home, two to four-unit owner-occupied home, townhouse, approved condominium unit, or certain manufactured homes
HECM reverse mortgages do not require you to have a certain income or credit score thus making it possible for seniors to qualify unlike traditional forward mortgages.
Reverse Mortgage Pros and Cons
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.
The downsides of reverse mortgages
• Reverse mortgage proceeds could impact Medicaid eligibility. • Borrowers must be at least 62 years old to qualify. • Lenders generally charge origination fees and other closing costs. • Lenders require free debt counseling prior to loan application. • Lenders may charge servicing fees during term of the mortgage. • Debt increases over time as interest is charged to outstanding balance of loan. • Most loans have variable interest rates tied to short-term indexes, such as the one-year Treasury bill or LIBOR. Fixed Rate Loans are available. • As home equity is used up, fewer assets are available to leave to heirs. • Interest is not tax deductible until the loan is paid off. • Borrowers are responsible for paying taxes, homeowners insurance, maintenance costs and other expenses. If they don’t, the loan may become due.1
to learn more reverse mortgage information
to find out how much you can receive reverse mortgage calculator
what are the reverse mortgage disadvantages
A reverse mortgage allows you to access a portion of the equity in your home to obtain tax-free cash without having to make monthly loan payments.
Reverse Mortgages safe and is Government-Insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). The reverse mortgage was signed into law as a national program in 1988 and since its inception has helped thousands of homeowners safely access the equity in their homes, helping them better enjoy their retirement years.
To be eligible for a Reverse Mortgage loan, some key requirements are:
• Be at least 62 years of age or older
• Live in your home as your primary residence and have sufficient equity in it
• Be able to pay any existing mortgages through the Reverse Mortgage
• Live in a single family home, two to four-unit owner-occupied home, townhouse, approved condominium unit, or certain manufactured homes
HECM reverse mortgages do not require you to have a certain income or credit score thus making it possible for seniors to qualify unlike traditional forward mortgages.
Reverse Mortgage Pros and Cons
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.
The downsides of reverse mortgages
• Reverse mortgage proceeds could impact Medicaid eligibility. • Borrowers must be at least 62 years old to qualify. • Lenders generally charge origination fees and other closing costs. • Lenders require free debt counseling prior to loan application. • Lenders may charge servicing fees during term of the mortgage. • Debt increases over time as interest is charged to outstanding balance of loan. • Most loans have variable interest rates tied to short-term indexes, such as the one-year Treasury bill or LIBOR. Fixed Rate Loans are available. • As home equity is used up, fewer assets are available to leave to heirs. • Interest is not tax deductible until the loan is paid off. • Borrowers are responsible for paying taxes, homeowners insurance, maintenance costs and other expenses. If they don’t, the loan may become due.1
to learn more reverse mortgage information
to find out how much you can receive reverse mortgage calculator
what are the reverse mortgage disadvantages
Subscribe to:
Comments (Atom)