ReverseMortgageToday.Org Objective, Independent, Free Free Reverse Mortgage Loan Information, Brochure, Pros & Cons.
This site is for seniors looking for an unbiased source of Reverse Mortgage Information, News, Links, Myths, Disadvantages, Stories, Reviews and Videos.
Since ReverseMortgageToday.org is not a lender, our goal is simple. To provide concise, objective information laying out the pros and cons of a reverse mortgages.
So why are more and more seniors choosing reverse mortgages than ever?
Today, Reverse Mortgages are increasing in popularity with many seniors who want to supplement their income, pay off bills or simply eliminate their current mortgage payment. However, when considering a reverse Mortgage it is very important to know the facts..
Reverse Mortgages insured by the U.S. Federal Government are called a Home Equity Conversion Mortgage or HECM. HECM's are a safe plan that can give Senior Homeowners greater financial security. However, there are some pros and cons that are addressed on this site.
What do I need to know about Reverse Mortgages and how much do I qualify for?
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Reverse Mortgage Eligibility Requirements.
Youngest Borrower must be 62 or older.
Have a single-family home or other approved property.
Must own the property and intend to live in the home as your primary residence.
Can pay off existing loans with proceeds from your reverse mortgage.
Borrower must keep current on taxes, insurance, maintenance, etc.
Loan Amount based on:
The age of youngest borrower residing in subject property
Current Interest rate -Fixed rate or adjustable.
Lesser of appraised value or FHA insurance limit. Currently $625,500
Reverse Mortgage Pros:
Eliminate current mortgage payment.
Remain in your own home.
No income or credit qualifications are required of the borrower
Pay off Bills with Tax free funds
Protect your family & enjoy peace of mind.
Does not affect social security.
Receive payments instead of making them.
Borrower can never owe more than home is worth.
Reverse Mortgage Cons:
Closing costs including set origination fees.
Must have FHA mortgage insurance.
Interest accrues.
Equity in home decreases
Youngest borrower must be over 62.
May limit relocation options down the road.
Reverse Mortgage News...
Reverse Mortgage: Make A Smart Informed Decision?
Repayment of the reverse mortgage only takes place when homeowner permanently moves out of the home....Four Factors Seniors Should Keep In Mind
Why are you interested in this type of loan and is it truly necessary you obtain..
Four Factors Seniors Should Keep In Mind
Why are you interested in this type of loan and is it truly necessary you obtain..
Senior Reverse Pros and Cons
The first reverse mortgages were years ago, with quite modest success
While Still Costly, but Less So
The adage that you can’t take out a loan to pay for retirement is not entirely true
Reverse Mortgage Loan Can Prevent a Home Foreclosure
When foreclosure threatens, act quickly, foreclosure is a serious thing. It can a credit
score by as much as..
Low Termination Rates Reported
The first meaningful measurement of reverse mortgage performance..
Should I consider a Reverse?
In today`s economic climate more seniors who are getting near retirement age..
Who qualifies for this type of mortgage?
With medical and living expenses higher they have ever been..
Explaining a Reverse Mortgage Line of Credit
posted by admin apr 20, 2010
A reverse mortgage credit line is an option for seniors who don’t not need all of the cash proceeds up front. Keep in mind is that the credit line option is only available with an adjustable interest rate—whereas the fixed rate option is for those who want or need all of their funds from the start such as those who wish to use a reverse mortgage to pay off an existing mortgage and/or other loans with high balances. However, for those who do not want to draw against the entire loan balance a line of credit is the perfect solution.
With a line of credit not only does the borrower not pay interest on any unused funds but those unused funds increase in value. This additional growth is not interest as such but a growth index that is based on the interest on the loan itself. The unused funds in a reverse mortgage grow in value at the same rate as the accrual of interest on the loan plus an additional half of a percent. This means the available unused principal on the loan increases on a monthly basis giving the borrower more money with which to do as he feels necessary. This is a significant difference from the fixed rate products.
When looking at a reverse mortgage line of credit remember the growth rate is for the borrower only. At the time a homeowner with a reverse mortgage line of credit dies only the remaining principal funds are available the heirs. If the borrower has not withdrawn all of the money from his reverse mortgage before his death any remaining balance that consists of the growth margin will not be distributed to the heirs. This portion of the unused balance of the reverse mortgage is only available to the borrower.
In addition with the line of credit’s ability to grow, this option also helps borrowers who only need cash on an occasional basis. For example a borrower may pay off his mortgage but needs funds to pay his annual taxes on the property or maybe take a vacation. The choices are abundant and will be different for each homeowner. Making the choice to use a reverse mortgage line of credit can certainly help the senior homeowner tap into the cash value of his home without paying interest on the entire loan amount. The money a borrower can save not only on interest but also using the growth factor can add substantially to the amount of cash a senior has to make his life easier.
The Pensions Crisis: Is A Reverse Mortgage The Answer? There is a crisis in the pensions system. Many seniors are reaching the age when they should be retiring but are shocked to find that they just won't have enough to live on. Many have to find alternative ways to fund the lifestyle that they desire. A trend that is emerging is using a reverse mortgage. Reverse Mortgages Stem foreclosure tide.
Posted by admin jan 17, 2009
If you have spent your whole life working hard to put a roof over your family's head and pay the Taxman, it's only natural that you're looking forward to retirement and taking things a little easier. After all, you've paid into a pension every month for years. But many seniors are finding that the amount they will be getting from their pension is woefully short of what they need to live on.
Some are going to the lengths of considering selling their home and moving to somewhere smaller. But there is a solution whereby you can stay in your home and get access to a lump sum of cash or a monthly income. It's by using a reverse mortgage. These products have been available for some years now but have become much more popular in recent times as many baby-boomers reach retirement age.
A reverse mortgage allows you to access the equity that you have built up in your home. There are no repayments to make, the loan is eventually repaid when you move out of the house, sell it or pass away. In essence you are swapping equity in your home for cash.
There are a lot of things that you need to consider before entering into a reverse mortgage. As it is completely different to a normal mortgage, it is essential that you understand all the implications that are entailed. It is recommended that you speak to both your family and a housing counselor
posted by admin Dec 23, 2009
Foreclosure filings were reported on 2.3 million U.S. properties in 2008, an increase of 81 percent from 2007 and up 225 percent from 2006, according to the RealtyTrac U.S. Foreclosure Market Report released January 15, 2009. The soaring number of forclosures have sent ripples through the housing and banking industry with the affects being felt by millions.
According to RealtyTrac, California, Florida, Arizona posted the highest 2008 foreclosure totals. A total of 523,624 California properties received a foreclosure filing in 2008, the nation’s highest state total. Foreclosure activity in the state increased nearly 110 percent from 2007 and nearly 498 percent from 2006. With 385,309 properties receiving a foreclosure filing in 2008, Florida documented the second highest state total. Florida foreclosure activity increased 133 percent from 2007 and nearly 412 percent from 2006. Arizona’s 2008 total of 116,911 properties receiving a foreclosure filing was third highest among the states. Foreclosure activity in Arizona increased 203 percent from 2007 and 655 percent from 2006. Other states with Top 10 totals for 2008 were Ohio, Michigan, Illinois, Texas, Georgia, Nevada and New Jersey.
With mounting job losses and a weakening economy, forclosures and mortgage delinquencies are expected to continue to rise. The nation’s unemployment rate shot up at the end of the year, reaching 7.2 percent in December — its highest level since early 1993, according to a Labor Department report release January 9, 2009. That puts U.S. job losses at 2.6 million for 2008.
However, with all this doom and gloom in the housing market, there is a glimmer of hope for senior homeowners 62 years of age and older. That hope comes in the form of a HUD Home Equity Conversion Mortgage (HECM) or Reverse Mortgage. Those who have obtained a reverse mortgage need not be concerned with the increasing forclosure rates and whether or not they can make their mortgage payments. With a HECM reverse mortgage, there are no monthly payments required.
Borrowers remain in their homes for life and never have to worry about making a mortgage payment again. All they need to do is keep the property in good repair, pay their property taxes and keep their homeowners insurance current and paid.
For seniors who currently do not have a reverse mortgage, now may be the time to explore the option. It does not matter if a senior is currently late on their mortgage. They may still qualify for a reverse mortgage. To qualify all borrowers on title must be 62 years or older, occupy the property as their primary residence and not currently be in a bankruptcy. That’s it!
MLS Reverse Mortgage has helped save several seniors who were months away from losing their homes.
So, in these tough economic times, there is still hope for seniors looking for mortgage payment relief or cash out to enjoy life’s pleasures.