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Reverse Mortgage Basics
Reverse Mortgage Basics What is a Reverse Mortgage? Reverse mortgages are designed for homeowners age 62 and older. They are called reverse mortgages because the lender advances the homeowner money based on the equity in the house. The amount of money depends on the amount of equity in the house [...]
Continue reading...Reverse Mortgage Guidance
16. February 2010
Find Out if You Qualify To find out if you are eligible for a reverse mortgage loan, take a moment to review the following requirements: All homeowners must be age 62 or greater to qualify for a reverse mortgage. The required counseling must be completed no later than six months before applying. Each homeowner must live [...]
Continue reading...Reverse Mortgage Guidance
4. February 2010
Types of Reverse Mortgages Home Equity Conversion Mortgage (HECM) HECM’s are insured by the Department of Housing and Urban Development (HUD). They represent about 95% of the reverse mortgage market. HECM’s can be used for any purpose and have either monthly adjustable or annually adjustable interest rates. Some lenders offer fixed rate HECM’s [...]
Continue reading...Reverse Mortgage Guidance
2. February 2010
Why Do I Need Counseling The US Department of Housing and Urban Development (HUD)requires that all borrowers taking out a reverse mortgage participate in a counseling session with a a HUD approved Reverse Mortgage Counselor. These counselors work for non profit organizations and must have successfully completed certification examination with HUD. The counseling session covers a [...]
Continue reading...Reverse Mortgages In The News
17. January 2010
In a ruling last month, Charles J. Thomas, a New York Supreme Court Judge voided a reverse mortgage and its subsequent refinancing on the grounds that the borrower’s mental illness made her unable to understand the reverse mortgage. In the case, Matter of Doar, 31393/07, the borrower, Ms. Hermina Brunson, took out a reverse mortgage with [...]
Continue reading...Reverse Mortgage Set to Have Changes Take effect In October
6. October 2009
Their are several interesting trends in reverse mortgages that are coming to a head here at year end. It is largely anticipated that the FHA may move to effectively curtail equity releases by as much as 5%. Different reasons have been provided included the lack of home price appreciation, and the insurance fund that stands behind [...]
Continue reading...5 Questions To Ask Before Considering a Reverse Mortgage
21. July 2009
Do you really need a reverse mortgage? Why are you interested in these loans? What would you do with the money you would get from one? Are the needs you intend to meet really worth the high total cost of these loans? If you want to take a dream vacation, a reverse mortgage is a [...]
Continue reading...Reverse Mortgages Terms-M Thru Z
28. June 2009
Margin – in the HECM program, the amount added to the one-year Treasury rate to determine the initial and current interest rates, and to the 10-year Treasury rate to determine the expected interest rate. Maturity – when a loan must be repaid; when it becomes "due and payable" . Mortgage – a legal document making a home [...]
Continue reading...Reverse Mortgage Terms-A Thru L
22. June 2009
Adjustable rate – an interest rate that changes, based on changes in a published market-rate index. Appraisal – an estimate of much a house would sell for if it were sold; also called its market value. Appreciation – an increase in a home’s value. Cap – a limit on the amount an adjustable interest rate may go up [...]
Continue reading...Some Reverse Mortgage Facts
14. June 2009
If you’re 62 or older and have enough equity in your home you will qualify for a Reverse Mortgage. There are no credit checks, income checks or health checks. There are three types of reverse mortgages; single-purpose, federally insured or proprietary. A single purpose reverse mortgage can only be used forone purpose, such as home [...]
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9. March 2010
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