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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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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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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Australia: Reverse mortgages not thicker than blood,
Parents who use a reverse mortgage to lend funds to their children could face losing part of their pension on a technicality, said Louise Biti, head of technical services at Asteron.
“Children in a great deal of debt may place pressure on their parents to take out a reverse mortgage in order to help them financially,” Biti said.
She said assuming the parents have other assets and are over the threshold amount and used a reverse mortgage to lend to their children, they run the risk of transferring an ‘exempt asset’ into an ‘assessable asset’.
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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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More Seniors Tap Their Homes for Income,
These loans help homeowners turn their equity into cash.
More older Americans wanting to take advantage of the rise in home prices over the past decade without having to move are considering a reverse mortgage to tap their equity. About 150,000 homeowners will apply for one this year — twice last year’s number, reports the National Reverse Mortgage Lenders Association.
With a reverse mortgage, you receive tax-free cash instead of making payments. Your debt increases rather than decreases, but you do not have to repay it until you move. If you die, your estate settles up. Payout options include a line of credit or fixed monthly payments for life or a specific period. You must be 62 to qualify.
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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 mortgage market grows to $1.8b,
Australia’s reverse mortgage market has ballooned in the past 12 months to be worth $1.8 billion and is likely to keep growing as baby boomers look to fund a more comfortable retirement.
Reverse mortgages allow retirees to borrow against the equity in their home.
The loan, plus interest, is usually paid back at once when the borrower sells the house - either when they move into a retirement home or die.
The first reverse mortgage was issued in Australia in 1986 by Advance Bank before it was bought by St George Bank Ltd, which is now a major player in the market.
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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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Five important questions to ask when selecting a reverse mortgage lender,
With the introduction of new product and pricing options, there has never been a better time for seniors to consider a reverse mortgage. In the first half of 2007, the industry has seen a flurry of new, lower-priced products that offer greater benefits to the consumer, as well as a range of new providers. This is great news for senior homeowners who are considering reverse mortgages - but it can also cause confusion when choosing the right lender or the product best suited the senior’s needs.
Financial Freedom, the nation’s largest provider of reverse mortgages, has identified five important questions that prospective borrowers should ask when discussing reverse mortgages.
1. Are you a member of the National Reverse Mortgage Lenders Association (NRMLA)?
Not all lenders are created equal. NRMLA is the industry’s trade group are requires members to follow a best practices model and code of conduct. Even though reverse mortgages have numerous built-in consumer safeguards, it’s a good idea to select lending organizations with a national presence.
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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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