I have watched reverse mortgage points and fees decline in the most recent year but they are still the most expensive loan outside of private money for borrowers with standard credit and income. The Motley Fool, reports.
They’re not always a good deal. The points and fees they charge can be fairly high, and their interest rates can be considerably higher than those for regular mortgages. The cash flow you can expect from a reverse mortgage is determined by your home’s value, your age and interest rates. Those 62 years old or older, with little or no debt, stand to benefit the most from reverse mortgages. Loan programs vary widely in what they offer, so shopping around is critical. Retiring the debt usually means selling the home — often upon the death of the borrower — unless the heirs can cough up the repayment. Full Article
Written by charles dennis on October 22nd, 2007 with no comments.
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Know the facts about reverse mortgages,
Reverse mortgages are being offered as a solution for older homeowners who are exploring ways to tap into the equity built up in their homes.
These mortgages provide money to homeowners with no repayment of funds and interest required until the loan term ends - generally until the borrower no longer occupies the house. Payments can be in the form of a lump sum, a line of credit, monthly payments or any combination of these.
The Better Business Bureau of Mississippi, along with the Federal Trade Commission, suggests that the following facts be considered:
# Reverse mortgages are “rising debt” loans where the interest is added to the principal balance since no payments are being made.
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on October 7th, 2007 with no comments.
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Reverse mortgages can help seniors with retirement,
A lengthy retirement should be relatively stress-free, but as Americans live longer, the biggest worry today is whether they will outlive their money.
“The challenge for people approaching retirement is longevity and how long they’ll live in retirement,” said Ted Provenza, a certified estate planner with The Provenza Group of Owings Mills.
Provenza says people entering retirement should have paid off their mortgage, as other expenses will tug at what will become limited income.
“Your need for income should be as low as possible,” Provenza said.
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on October 7th, 2007 with no comments.
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How Does a Reverse Mortgage Work?,
Are you a senior homeowner looking for a way to get extra funds during your retirement years? Well, you may have heard about a reverse mortgage, but are wondering how does a reverse mortgage work? Here’s a closer look at the basics to help you know if a reverse mortgage is right for you.
There’s no doubt that reverse mortgage loans have become increasingly popular today. You may have seen the growing number of commercials by lenders promoting these home loans, but exactly what is a reverse mortgage?
What Is A Reverse Mortgage?
A reverse mortgage is a unique loan program available to seniors over 62 that lend you the equity in your home. But, unlike a regular home equity loan or line of credit, you do not make loan payments or pay back the loan until you move from your home, sell it outright, or pass away.
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on October 7th, 2007 with no comments.
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Fixed Rate Reverse Mortgages - Stable Alternative Receives Enthusiastic Welcome,
Time brings change. Nowhere could that be truer than in the world of reverse mortgages. During the past three years, there’’s been a huge increase in the choices and benefits that reverse mortgages provide to borrowers.
Many previously undecided homeowners are making the move and enjoying the benefits of a reverse mortgage. The big change that’’s helping them get started — the FRRM (Fixed Rate Reverse Mortgage)
While there are benefits in obtaining either a fixed or adjustable rate mortgage, for many elderly homeowners, the thought of not knowing what their interest rate will be 5 or 10 years from now presented an obstacle. “I owned a home when interest rates were very high,” said Carolyn Brandon, a retired state employee. Ms. Brandon had investigated reverse mortgages for over a year. “Everything looked great, but I waited until I could get a fixed rate reverse mortgage,” she added.
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on October 7th, 2007 with no comments.
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India: House that!,
Sometimes, the Kumars (name changed) wish they were younger and fitter. Wistfully, these 60-somethings, living in a middle-class Delhi suburb, recount their tale. He retired from government service seven years ago and got a pension. But it proved to be insufficient when medical problems beset both, and surgeries and medicines started eating into their savings. When their two children refused help, it looked grim. But then, one day, he read about a new product called ‘reverse mortgage’, and it looked like a doorway to a better financial life.
The Kumars had a house. They couldn’t rent it out, but they learnt they could turn it into an income stream in their lifetime, while continuing to live in it. They got in touch with Punjab National Bank (PNB), one of the two players with a reverse mortgage product. PNB assessed the value of their property at Rs 1.1 crore. It sanctioned a loan on 80 per cent of this (Rs 91 lakh), and structured this loan into monthly payments (like an EMI that you receive).
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on October 7th, 2007 with no comments.
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Canada: Thinking about a reverse mortgage?,
Here are some questions you need to ask first
As explained last week, a reverse mortgage is a way for cash-poor seniors age 60 and over to turn the equity in their house into spending money. The equity value is the current market value less any mortgage debt still owing.
Great, you say. Where do I sign?
Hold your horses. If you don’t ask the right questions, you can get into something painfully different from what you were expecting.
Remember, this is a loan that will eventually have to be paid back, with interest, by somebody - you, if you move or sell, or your heirs when you die. That’s fine if your ambition is to die on the day you spend your last dollar, but not if you would like to leave something to the next generation or two.
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Written by News & Feeds on October 7th, 2007 with no comments.
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