February 21st, 2012
Many borrowers and real estate professionals have never used a reverse mortgage to purchase a home or been involved in a transaction where one was used. This promotes a bit of uncertainty on the part of real estate professionals, sellers and some buyers when it seems that the whole process is new and different in many ways than what they have always done in the past. Reverse mortgages can be a great way for borrowers age 62 and over to purchase a home without the income requirements of a traditional home loan. In addition, reverse mortgages require no regular mortgage [...]
Posted in Home Purchase | No Comments »
February 17th, 2012
It’s funny when you hear someone with a definite opinion, one way or the other about reverse mortgages that is the same no matter who you’re talking about or what the circumstances are. The choice of whether or not to get this loan isn’t universally a “good” or “bad” decision – there are a lot of different factors that need to be considered. But it just could be the right choice for you. Get Breathing Room for your Budget A reverse mortgage could be good idea if you’re “house rich but cash poor”—in other words, you own your home outright [...]
Posted in Pros & Cons | No Comments »
February 10th, 2012
How Will a Reverse Mortgage Impact my Kids and Family? In researching and weighing the pros and cons of a reverse mortgage, a common question probably comes to mind: How will a reverse mortgage impact my children and family? The most important thing to remember is that your children and family will never be on the hook for repaying a loan that exceeds the value of your home once the time comes to repay the loan. When you get a federally-insured Home Equity Conversion Mortgage (HECM), there’s a government guarantee which specifies that if you pass away or move [...]
Tags: children, heirs
Posted in Heirs & Loan Maturity | No Comments »
February 8th, 2012
You’ve done all your research on what a reverse mortgage is and you’ve decided that this is the right loan for you. Now the question is, what do you do next to get the loan started? Many senior homeowners get to the point where they know they want the loan, but they do not know how to proceed or how long the loan will take. This may be a little simplistic and there may be some other things that come up along the way, but these really are the steps every borrower has to take to get a reverse mortgage. [...]
Tags: application, process
Posted in About Reverse Mortgages | No Comments »
February 3rd, 2012
A federally-insured reverse mortgage comes with the benefit that you, the borrower, will receive loan payments as agreed upon by the terms of your loan, and will never owe more than your home is worth. Those benefits are guaranteed by the Federal Housing Administration through its Home Equity Conversion Mortgage program, which includes the vast majority of reverse mortgages out there. In order to receive that guarantee, borrowers pay for it through the reverse mortgage insurance premiums. The first is a one-time insurance payment that is made upfront, and the other is an annual insurance premium that is paid monthly [...]
Tags: insurance, MIP
Posted in About Reverse Mortgages | No Comments »
February 1st, 2012
Borrowers are still asking, “Which is better, a Home Equity Line of Credit from our Bank or a Line of Credit on a Reverse Mortgage?”. And there is not just one answer the works for everything when comparing the Home Equity Line of Credit or HELOC to the Home Equity Conversion Mortgage (HECM or “Heck-um”) when accessed as a line of credit. The two loans are different in many ways and which is “better” is often determined by which is better for you. A HELOC (Home Equity Line of Credit) is a typical loan for which you apply at a [...]
Tags: credit line, home equity loans
Posted in About Reverse Mortgages | No Comments »
January 26th, 2012
If you’re the owner of a manufactured home and you’re wondering about your eligibility for a reverse mortgage, here’s the short answer: you may be eligible. Now for the longer answer. As with any prospective borrower, you must be aged 62 or older, you must legally own the home, it must be your primary residence, and you must be eligible for participation in Federal Housing Administration programs. And if you have a manufactured home, yes, you can get a reverse mortgage—as long as it was built after June 15, 1976. Why is this particular date so important? It’s when the [...]
Tags: manufactured, mobile home
Posted in Qualifications | No Comments »
January 13th, 2012
A borrower’s home title is an essential component of a reverse mortgage transaction, and if not handled correctly, can cause for delays in the process and headaches for the borrower and the lender or title agent. The lender will gather all the essential information, but it’s good to be prepared with documentation and to be able to respond to questions about the home’s ownership, should they come up. It’s important to bear in mind that the borrower continues to own the home and hold title to the home throughout the reverse mortgage, and that any fees collected by a title [...]
Tags: POA, Power of attorney, title, trust
Posted in Trusts & POA | No Comments »
January 13th, 2012
Last year, three well-known banks left the reverse mortgage industry, leaving many borrowers with concerns and one big question: Why did they go? Bank of America exited in February, followed by OneWest Bank’s Financial Freedom in March, and then industry giant Wells Fargo in June, effectively shaking up the reverse mortgage world. At the time of its exit, Wells Fargo accounted for more than a quarter of the total number of home equity conversion mortgage (HECM) endorsements, while Bank of America had been the second-largest reverse mortgage lender at the end of 2010 with nearly 18% of the market. First [...]
Tags: bank of america, financial freedom, reverse mortgage banks, wells fargo
Posted in Lenders | No Comments »
January 11th, 2012
It is true that just about all reverse mortgages being originated at this time are the HUD Home Equity Conversion Mortgages (HECM or “Heck-um”). So many people think that the reverse mortgage fees and the rates are all going to be about the same. However, this is not always true and those borrowers who take the time to compare have found that sometimes a little extra research can save some big money, both now and over time. Let’s start with the reverse mortgage fees charged by HUD for the Up-Front Mortgage Insurance (UFMIP). Mortgage Insurance is required on every HECM [...]
Tags: cost, fees, reverse mortgage cost, reverse mortgage fees
Posted in Costs & Fees | No Comments »
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