Terry Edwards asked:


Do you wonder if a reverse mortgage is the right choice for you? Do you know exactly what a reverse mortgage is? Do you know how to find out more information on a reverse mortgage? These are just a few questions that a lot of people may have about reverse mortgages. The good news is that these questions and more can be answered through the AARP reverse mortgage information page. This webpage can give you the tools that you need to make an informed decision on reverse mortgages. Read on to discover the kind of useful information that you will find on the AARP reverse mortgage page.

The very first thing you will discover is the definition of a reverse mortgage. You should read this carefully so that you are fully aware of what a reverse mortgage is. The more informed that you become the easier it will be to make an intelligent decision. Don’t depend on other people to tell you what you should do, research for yourself.

Another thing that you will find on the AARP reverse mortgage page is an explanation of how a reverse mortgage works. This is a great explanation that is written in plain English and very easy to understand. This will help you become aware of what you are getting into when you apply for a reverse mortgage.

Do you wonder if you are eligible for a reverse mortgage? The AARP reverse mortgage page will give you the information that you need to find out if you are eligible. It will also tell you if your type of home is not eligible. Having this information will save you a lot of time and stress.

A great feature on the AARP reverse mortgage page is the explanation of how you can receive the reverse mortgage payment. Some programs will give you a lump sum, some will give you a monthly cash advance and some programs are set up to do a credit line where you decide how money you want each month. It also will tell you which program gives the largest cash advances.

Be careful when choosing which reverse mortgage program to work with. Some programs will tell you what you can do with the money. For example, some federal programs will only allow you to use the money for home repairs.

The AARP reverse mortgage page will also give you good advice on what you will pay when you get a reverse mortgage. This page will reveal to you who the cheapest lender of a reverse mortgage is in the private sector. Read this carefully to save yourself a ton of money.

As you can see, there is a ton of helpful information on the AARP reverse mortgage webpage. If you are thinking about getting reverse mortgage, study all the information on this page before you make your decision. It will save you a ton of money in the long run.



Reverse Mortgage Explained

Wade Robins asked:


A reverse mortgage wholesale product is not directly available to you as an applicant for a reverse mortgage. It is sold to a lender at a discounted (wholesale) interest rate, and the lender then offers it to you after adding points to the rate.

Sources Of Reverse Mortgage Wholesale Loans

There are only three organizations who sell reverse mortgage wholesale products; Fannie Mae; the Federal Housing Authority (FHA); and the Financial Freedom Cash Account. The loans from each of these entities vary in their available payment alternatives.

The FHA reverse mortgage wholesale product is called the Home Equity Conversion Mortgage, or HECM. The maximum you may borrow against your home in this program is about $360,000, but your limit will depend on your home’s location. The HECM is the reverse mortgage wholesale product underlying over 90% of all US reverse mortgages.

Both the FHA and HUD–the Department of Housing and Urban Development–guarantee FHA reverse mortgage wholesale loans. The guarantee means that the borrower is assured of getting the amount promised, and that the lender is assured of getting the entire principal and accrued interest when the loan is terminated, even if the home is sold for less than that amount.

Fannie Mae guarantees its Homekeeper reverse mortgage wholesale loans, which will allow you to take up to $417,00, and is somewhat unusual in that Fannie Mae allows you to use the proceeds from your existing home to purchase a less expensive one. Although Fannie Mae is not run by the Federal Government, the amount of business they do, and the strict regulations to which they must adhere make their guarantee of their reverse mortgage wholesale loans as solid as those of the FHA and HUD.

Both FHA and Homekeeper reverse mortgage wholesale loans are available in all fifty states.

Financial Freedom Cash Account reverse mortgage wholesale products from a subsidiary of Shearson Lehman are designed for homeowners wanting to borrow against high-value homes, usually with a minimum appraised value of $500,000. There is no limit to the amount which can be borrowed with a Financial Freedom Cash Account loan, and the loans are privately guaranteed. They are, however, only available in twenty-four states.

Where To Find A Reverse Mortgage Lender

Because you, as an applicant for a reverse mortgage, are not eligible to get a reverse mortgage wholesale loan, you should comparison shop among reverse mortgage lenders to find the ones who offer the lowest markups on their products. You can find a list of reliable lenders in your state by doing a search at the National Reverse Mortgage Lenders Association–NMRLA–website.

Once you start looking for a reverse mortgage wholesale through LLS Financial or any other company, you will quickly start to see a trend. You want to check on how quickly each of these reverse mortgage companies will be able to approve you. Typically a loan takes a couple of weeks to process – but when it comes to a reverse mortgage wholesale you should be able to have your reverse mortgage in hand within twenty four hours



reverse mortgage

MLS Reverse Mortgage asked:


Seniors today often live with a great deal of financial uncertainty. The retirement they imagined may not be consistent with the reality they face.

Incomes are flat or declining, living and medical expenses are higher than ever and few income boosting alternatives exist.  Even those who have heard about Reverse Mortgages may be unsure about how they work or what questions to ask. As they search for information, they often turn to their financial institution for guidance and information. By becoming familiar with the product, you can be an even more valuable resource to your clients providing them with income supplementing alternatives to drawing down assets.  

 

What is a Reverse Mortgage?

 

A Reverse Mortgage is a special type of loan that allows a homeowner to convert a portion of the equity in their home into cash they can access. The funds are not taxable to the homeowner and typically don’t interfere with eligibility for Social Security or Medicare benefits. (However, in the federal Supplemental Security Income program, beneficiaries must keep their liquid resources under certain limits.) The customer retains title to the home as well as right to any appreciation in home value when the loan terminates after it is paid off. The loan remains in force until the last titleholder dies, permanently leaves the home or sells the property; the borrower can’t be forced to sell or move by the lender. The loan may be repaid at any time. But unlike a traditional home equity loan or second mortgage, no monthly payments are required. Instead of putting further pressure on an already stretched budget, a Reverse Mortgage can free a senior homeowner of monthly debt obligations.

 

Most Reverse Mortgages today are Home Equity Conversion Mortgages (HECMs) and are FHA-insured and guaranteed. Because HECMs are subject to FHA lending limits, proprietary products have also been developed to help homeowners with properties in excess of the FHA lending limits.  

 

Who qualifies for a Reverse Mortgage?

 

All titleholders must be 62 or older and own a home with some equity. There are no income or credit qualifications. Existing mortgages or liens must be paid off, but are often paid with proceeds from the Reverse. The homeowner must also remain current on insurance and property taxes, but these can also be paid with proceeds from the Reverse.

 

How can a borrower use the money?

 

The funds can be used for any purpose from making ends meet to living retirement dreams.  The top reasons for funds used given typically by borrowers are:

 



Paying off debts, primarily mortgage and credit cards

Home repairs and remodeling

Living expenses

Travel

Health care or long-term care

Easing the financial burden on children

Education

Hobbies

Escalating property taxes



 

The amount available depends on the borrower’s age, the value of the home, interest rates and local FHA lending limits. Older borrowers can receive a higher percentage of their equity than younger borrowers. Funds can be received in a lump sum, a monthly payment or a line of credit.

 

What are the costs?

 

As with most any loan product, there are origination fees and closing costs, but they can be paid from the proceeds of the Reverse Mortgage. HECM loans also have a charge for the FHA’s Mortgage Insurance Premium (MIP). There are usually no out-of-pocket costs to the borrower.

 

What consumer protections are in place?

 

Reverse Mortgages are non-recourse consumer loans – the loan payoff can never exceed the value of the home. To get a Reverse Mortgage, the customer must attend a mandatory counseling session and review their financial situation with a trained, professional Reverse Mortgage counselor. Many of the counselors are certified by the AARP. The counselor ensures that they understand the transaction, the costs and their other alternatives.

 

If you have questions regarding Reverse Mortgages or how they may provide life-changing benefits to your clients, contact MLS Reverse Mortgage at 1-888-888-4834 or www.mlsreversemortgage.com.

 

Fixed Rate Reverse Mortgage

 

MLS Reverse Mortgage

 



Reverse Mortgage Wholesale

Will Robins asked:


The National Reverse Mortgage Lenders Association was established in 1997 to provide a variety for services for both those wishing to take advantage of reverse mortgages on their homes and lenders wishing to finance reverse mortgages.

The Reverse Mortgage Association has an educational program to aid senior citizens who have decided to take out a reverse mortgage as a way to remain financially independent The Reverse Mortgage Association has also established a Code of Conduct to which it expects reverse mortgage lenders to adhere in their dealings with senior citizens; it also has a training program in which reverse mortgage lenders are encouraged to participate.

How Reverse Mortgages Work

The Reverse Mortgage Association oversees a program in which homeowners sixty-two and older can turn a percentage of their home equity into non-taxable income while still retaining title to their homes. They are freed of the burden of a monthly mortgage payment, which they would otherwise have to accept by taking out a traditional home equity loan. The Reverse Mortgage Association oversees the activities of lenders who make the reverse mortgage payments to the senior homeowners.

A reverse mortgage does not have to be paid back until the home is no longer the borrowers’ principal residence, the borrowers pass way, the home is sold, or the borrowers leave it for good. And it the home is sold for an amount greater than the outstanding balance on the reverse mortgage, the borrowers, or their estates, can keep the difference. For more info see http://www.i-reversemortgages.com/Reverse_Mortgage_Information/ on Reverse Mortgage Information.

The Future Of Reverse Mortgages

With the Baby Boomer generation now entering their 60’s, the number of reverse mortgage loans is expected to increase dramatically. Because of that, it is more important than ever those senior citizens can trust the integrity of their lenders. The Reverse Mortgage Association has the job of verifying the quality and professionalism of reverse mortgage lenders and assuring that they will be an asset to the communities in which they do business.

The Reverse Mortgage Association holds a series of annual conferences for its member lenders, so that they can remain educated in the latest reverse mortgage issues, products, and borrower concerns.

For seniors who have been caught in the trap of dwindling IRA values, disappearing pensions, and rising health insurance costs, the idea of trying to survive in retirement on Social Security and little else may be devastating. A reverse home mortgage, from a lender who honors the Code of Conduct established by the Reverse Home Mortgage Association, could give them the secure retirement for which they are longing.



reverse mortgage

Michael Branson asked:


On July 5th 2008, Robert Powell of the Wall Street Journal online posted an article which quotes the Chief Executive of The Financial Industry Regulatory Authority (FINRA), Mary Schapiro, entitled Three Warnings for Hard Times: Beware of Strategies That Put Nest Egg at Risk.

I really must admit that when I first read the title I thought, Here we go again, another article by another journalist knocking reverse mortgages. As I started to read and I saw the quoted expert, and as an individual who has been a mortgage banker for 32 years and has worked closely with many Wall Street investment firms for that last 10, I started to think that the Financial Industry Regulatory Authority had to be a recent attempt at stopping the bleeding as obviously there was no one of any authority who had truly been regulating the financial industry for a while!

I remember thinking that securities firms such as Bear Stearns, Lehman Brothers, Goldman Sachs and countless other securities firms that engaged in the activities resulting in the sub-prime and Alt A debacle that has left this country in the worst credit crunch in most working peoples lives could have been avoided had a Regulatory Agency taken just a slight glance at the product these companies were encouraging lenders to fund and then securitizing to sell to unknowing investors.

I thought, this is the expert source Mr. Powell uses to spread yet one more wave of panic about reverse mortgages through the market place? Let’s face it, reverse mortgages are a popular subject these days and anything having to do with people’s financial situation is also newsworthy so I decided to find out exactly what FINRA was all about and what they actually said.

First I went to the FINRA website and did some research on Mary Schapiro, the individual quoted in the article. Ms. Schapiro has a very impressive resume. So after reading the article and seeing the excellent credentials of the Chief Executive of FINRA, Mary Schapiro, I wondered, how could the article be so misleading? Because the first bullet point in the article says that if you take a lump sum, it could affect you or your spouse’s eligibility for some programs such as Medicaid and left the statement there. That’s a true statement under some circumstances.

If you aren’t paying off an existing mortgage with that lump sum and you have a large amount of cash, then it could affect some need-based programs. But they don’t tell you that if you have an existing payment that you replace and there is no cash left over, that lump sum has no effect on programs but could permanently end the burden of monthly mortgage payments and improve the borrower’s quality of life.

They don’t tell you that there are many options to obtain the money which helps borrowers with their lives if they are struggling, other than the lump-sum option. They don’t tell you that every borrower is encouraged to seek competent financial advice pertaining to their circumstances and are required to go through HUD approved counseling before any services can be ordered on their behalf.

In the FINRA announcement of June 26, 2008, FINRA states that Whether the decision is right for you may ultimately depend on a number of factors your health, your spouse’s health, other sources of income, the reason you’re tapping your home equity, when you do it, and how wisely you use your home proceeds. Then they warn that borrowers should also beware of broader financial impacts of the decision.

All sound advice but not exactly the reverse drawback that the author throws out. Next, the author, Robert Powell tells you depending on the laws of your state, you may not have the same protection against creditors. Talk about vague threats! How many states will this affect and what creditors? What type of debts, and again, are they referring to excess cash if the borrower has a large amount of unpaid debts and they take a large sum of cash, put it in the bank and then creditors seek payment? Are they referring to potential future creditors? This is a terrible way to put fear into the hearts of senior borrowers.

I didn’t know to which specific creditors the author, was referring but with my admittedly limited legal knowledge, I knew most creditors can seek judgments which can be filed against properties anyway so this confused me. The FINRA announcement specifically states that depending on the laws of your state, a reverse mortgage may not enjoy the same home-equity protection and that there may be a loss of a homestead exclusion. As of this writing, I am unaware of any such losses and am planning on researching this further as neither FINRA nor the author used any state as an example of where this could possibly happen.

Powell’s third and final drawback is that a reverse mortgage isn’t the right choice if you want to leave the house to your heirs. WHAT?! A reverse mortgage does not affect what you do with the property after death. Heirs still inherit the property according to the wishes of the property owner.

If Mr. Powell is trying to state that because the senior homeowner will be using a portion of the equity for their daily lives then, it is true. A reverse mortgage is known as a reverse mortgage because it operates in a reverse manner as a normal, forward mortgage it is a rising debt falling equity loan as opposed to the typical rising equity falling debt loan. What this means is that the balance does rise on a reverse mortgage, but those funds are utilized by the individuals who were responsible for paying down that loan in the first place to allow them to age in dignity and in place.

This statement did come directly from the FINRA announcement so I think that both the author and FINRA should have explained that there is no problem leaving the home to your heirs, if it is more important to leave a property that is free and clear of a mortgage encumbrance than for the senior homeowner to extract equity for living expenses, then by all means, I would not encourage the borrower to take out a mortgage against the property. But then again, I would not encourage any borrower to take out any loan they did not need, reverse mortgage or otherwise.

Obviously neither Mr. Powell nor FINRA has ever sat across a table from a borrower or a couple who couldn’t meet their monthly obligations during these times of rising costs, they never talked to borrowers who had $ 25 left in their account on the fifteenth of the month and had to figure out a way to make ends meet for the remainder of the month until they received their next check, and they certainly never sat down with senior borrowers talked into an option arm by an unscrupulous lender (selling to poorly supervised Wall Street Securities Firms) who are now losing their home because they can’t make the new rising payments. We have had more than a dozen such cases in our small company alone, sadly, 5 of which we were unable to help. As a mortgage banker you could say that I have a stake in making sure that people continue to want to take out reverse mortgages.

But as a man who has sat across the table from senior borrowers who have welled up with tears when you have told them that they were done and never had to make another payment for as long as they lived in their home, it’s aggravating to read accounts like this from those who haven’t been there and send out a message that could confuse or scare off someone who could really use this instrument with a half-truth.

As a person who has seen borrowers who did not qualify for a reverse mortgage because they owed too much due to falling values, etc, and watched them weep openly when you had to tell them they could not get the reverse mortgage, it’s infuriating to read someone flippantly suggest that you might want to downsize in a market where real estate is not selling and go rent which indicates to a senior borrower who has lived in their home sometimes for 20, 30, 40 years or more that you think they can just pick up and move and give up the home they love and where they feel comfortable.

And yes, reverse mortgages are expensive loans and not for everyone, But has anyone figured out the costs of selling a home and relocating lately, not to mention what it does to you psychologically, especially when it’s something you’re forced to do? And finally, it just makes me sad when I see an article where people don’t even consider the value of the senior borrower and their ability to age in place and dignity.

These people worked hard for their homes and I do agree with the premise that a reverse mortgage is not right for all people. The last thing I would want to see is someone getting a loan, any loan, that is not right for them. We counsel borrowers on the costs of reverse mortgages every day and if Mr. Powell wants to suggest that family members stay involved with senior borrowers contemplating a reverse mortgage due to the costs involved and the other financial implications, I would be the first to applaud his efforts.

When you read the entire FINRA announcement, it doesn’t say not to get a reverse mortgage, it says that the bottom line is that all options including downsizing, selling and renting, consolidating debts, looking into other government assistance programs and seeking help from children or other heirs may be less expensive or lower cost ways to address your needs.

I would agree with the FINRA assessment, but the senior borrowers with whom I’ve worked loved their homes and don’t want to move and shouldn’t have to if they’ve worked all their lives to build up the equity and that equity can provide a way for them to stay in the home. Many have had their children living with them because they themselves have been forced to move in with their senior parents and often are not in a position to help with anything in this economy.

I just **** to see people given wrong or half the facts to support a journalistic position that is popular at the time.



Reverse Mortgage Loans

MLS Reverse Mortgage asked:


First and foremost; the bank does not, nor do they want to own your home. So why do so many people believe this? Prior to FHA getting involved in 1988, the lenders would take an equity position in their Borrowers homes.  That practice has resulted in unfavorable feelings towards today’s reverse mortgages. The Federal Housing Administration (FHA) has set the new standards and guidelines for HECM reverse mortgage loans and their involvement has produced a safe, well thought out and balanced loan for Seniors. Look below to find some of the pros and cons of reverse mortgages.





The Upsides



There are no monthly payments associated with a reverse mortgage. You will never be required to make a monthly payment while you reside in your home.

You stay on title and any equity remaining in the property is yours. The lender does not take title to your home!

You can never owe more money than your home is worth. HECM reverse mortgages are “nonrecourse” loans. This means that no matter how long you stay in your home, you will never be obligated to the lender to pay them any more than the value of the property, even if the loan exceeds the value.

A reverse mortgage will not effect Social Security or Medicare benefits.

Qualifying is easy. You must be at least 62 years of age and have value in you home. You do not not have to prove income or have good credit. The value of your home and your age determine loan amounts. It’s that simple.

The money you receive from your reverse mortgage is tax free.

The funds you receive can now be designed for your specific needs. Depending on the amount of funds you require, you can create your loan with a fixed or variable rate. You can also design your loan to provide one upfront payment of all cash, you can receive monthly payments or keep all of the funds due you in a line of credit and withdraw the funds as you need them. You can also create a combination of all three methods.

The funds from a reverse mortgage may be used anyway you want. After paying off any existing mortgages, tax liens or heath and/or safety issues regarding your home, you can use the funds for any purpose you desire. Take a vacation, you deserve it. Make repairs or upgrades to your home. Put all the cash on 7 and spin the wheel, the funds are yours.

You built the equity in your home over years of hard work, now you can let this equity work for you. You can feel the self reward and know that you are not necessarily reliant on your children or other family members to help you. There seems to be a since of pride that goes along with method.

FHA insures these loans. Given the state of this economy, you do not want to find out that the bank funding your monthly payments has gone out of business. With FHA insuring your loan proceeds, you can be comfortable knowing that your next payment will be guaranteed by the US government.

NRMLA. Lender/members of the National Reverse Mortgage Lenders Association are an elite group of individuals who are dedicated to helping American Seniors fulfill their retirement dreams. This group is available for you.  



The Downsides 



Lenders generally  charge their origination fees, FHA upfront mortgage insurance (MIP) and other closing costs that add up in a hurry. The flip-side to this, however, is that if you really need the funds from the equity in your home you could borrow the funds traditionally as long as you can afford the monthly payments or sell the property. If you sell the property, you are left without a home to live in and the 5-6% cost to sell your home is considerably higher than those fees assessed with a reverse mortgage. The longer you live in the property the lower the costs average out.

Most reverse mortgages require utilizing a variable rate. This can be overcome by using a fixed rate. Unfortunately, the fixed rate reverse mortgage requires that you draw all funds available to you and may not be the right loan for all applicants.

Your mortgage debt rises fairly quickly, but, there is no surprise that the loan increases rapidly since you do not make any payments while living in the property. The interest that would be due as in a traditional loan simply adds on and creates a new higher principle value.

Borrowers are of course responsible to keep the property properly maintained and they must stay current with their homeowners insurance and property tax.



 

All in all I believe the upside to reverse loans far outweighs the downsides. Call on a NRMLA member and do your homework. Vist us online: www.mlsreversemortgage.com



reverse mortgage

trinity reverse asked:


Senior citizens will be happy to know that they don’t have to pay monthly mortgage fees anymore when they hear about reverse mortgage loans. Reverse mortgage loans, which are only available for citizens 62 years old or older, are mortgage plans that don’t require the borrower to pay monthly payments. In fact, the borrower pays nothing at all. Instead, the borrower will receive money from the lender, and the lender will be paid back by the proceeds of the house sale. Reverse mortgages are designed for senior citizens, because people know that when living in those glorious golden years, people have more important things to do than worry about possible foreclosures and mortgage payments; important things such as spoiling the grandchildren or working on important hobbies.

Applying for Reverse Mortgage loans are easy, especially since the federal government requires that all reverse mortgage applicants receive financial counseling before making a decision. Financial counseling services can be provided, or chosen by the applicant, and the federal government pays for it; basically, applicants get a free lesson! In addition, what is called “reverse mortgage calculators” are available on most online sites, that offer reverse mortgage loans; reverse mortgage calculators are also available in person. A reverse mortgage calculator is a pre-application estimate of how much the applicant is liable to receive, and all that it takes to find out is to enter a few simple pieces of information such as age, spouse or work partner’s age, estimated home value, and that’s it.

When and if the senior citizen decides he or she wants to go ahead with the application process for a reverse mortgage, then that person need only find a reverse mortgage company or an individual wholesale lender. Wholesale lenders, lenders who purchase reverse mortgage plans at a wholesale price from companies like Fannie Mae, Federal Housing Authority, or Financial Freedom, can most often be searched for by state or by rating. People can do this by referring to the National Reverse Mortgage Lenders Association (NMRLA); applicants can even check the lenders’ profiles to see what other people have said about that lender’s personality, services, attitude, and helpfulness in the application process, and beyond. Companies such as the ones mentioned above also have lenders that work directly for them, which can be searched for in the same way.

By Applying for Reverse Mortgage loans, senior citizens who are 62 years or older will have gone through a strict process to weed out the bad lenders from the good, until the best lender for that specific citizen’s personality is found. This will help people be better informed, be treated more respectfully, and even help people develop a nice talkative friendship relationship with the lender during the application process.

For more information please visit our website on Reverse Mortgage



Information On Reverse Mortgage

Robert E. Jones asked:


1. Am I eligible for a Reverse Mortgage?

• To qualify for a reverse mortgage, you must:

• Be at least 62 years old. In the case of a couple or co-owners, both must be 62 if they want their names to be on title of the home.

• Be a homeowner with enough equity in the home.

• Seniors may qualify even if they have an outstanding balance on a mortgage.

• Single-family homes and qualified condominiums, townhouses, manufactured homes, and 2 to 4-family owner occupied residences are eligible.

• Reverse mortgages are available only for homes occupied by owners as a principal residence.

• Can own up to 4 dwellings.

2. Are Reverse Mortgages legitimate?

Yes. Reverse Mortgages are federally regulated and insured and are safer than most traditional mortgages.

3. If I get a Reverse Mortgage that means the government holds title to my home?

False. Title does not get transferred into the governments name. Throughout the life of the loan, you own your home.

4. If I decide to sell my home, will the lender make me pay back the loan and will they collect a portion of the appreciation?

False. The lender will only collect the amount that is due to them. If the loan balance is larger than the home value, the lender will only collect the proceeds from the sale. You can never owe more than what your home is worth.

5. What do I have to pay to get a Reverse Mortgage?

In most cases there are no out of pocket costs to get a Reverse Mortgage. All costs deferred and only due when the homeowner moves out permanently, sells the home or passes away.

6. What are my payment options?

You decide how to receive the money generated by a Reverse Mortgage. In general, your payment options are:

• An upfront lump sum payment.

• Line of credit.

• Fixed monthly payments for as long as you remain in your home (or a predetermined, shorter period).

• A combination of lump sum, monthly income and line of credit.

7. Are Reverse Mortgages only for desperate seniors, or for the “House Rich, Cash Poor?”

False. The Reverse Mortgage is an excellent financial planning tool that has been used by homeowners from all walks of life to enhance their retirement years. While some have needed the cash from a reverse mortgage more than others, the growing popularity of this product is evidence of its benefit in a wide array of financial circumstances.

8. Am I required to pay anything during the course of the Reverse Mortgage loan?

No. The flow of payments is reversed during the term of the Reverse Mortgage – the lending institution pays you. However, you are responsible for keeping up payments for your homeowner’s insurance and property taxes, and to maintain the condition of your home.

9. What happens when my house gets passed to my heirs?

Once your home is passed to your heirs, the Reverse Mortgage comes due. Your heirs may either pay the balance due on the reverse mortgage and keep the home, or sell the home and use the proceeds to pay off the reverse mortgage. If they sell the home, they get to keep any excess sale proceeds.

10. Can I do a Reverse Mortgage if there already is a conventional mortgage on the home?

Yes. Existing mortgages must be paid off at closing. The proceeds from the Reverse Mortgage may be used for that purpose. This will eliminate any monthly mortgage payments.

11. Can a Reverse Mortgage be closed in a living trust?

Yes. Generally this is acceptable. The complete trust documents will need to be copied and put in as part of the file.

12. Will a Reverse Mortgage affect my Social Security, Medicare or pension benefits?

No. Proceeds from a Reverse Mortgage do not affect these benefits.

13. Can I get a Reverse Mortgage from anyone?

No. Only federally approved lenders may offer HUD insured reverse mortgages. Rob Jones will close your Reverse Mortgages up to three times faster than the competition. Why not use a pioneer in the reverse mortgage profession, Sun American has over 20 years of Reverse Mortgage experience.

14. How do I get started?

Call Rob Jones at Sun American Mortgage. He will need your birth date, approximate value of your home and the amount of money remaining on your mortgage, if any.



reverse mortgage

Wade Robins asked:


With millions of Americans now at or approaching retirement age, the problems of failed pensions, inadequate social security, and escalating health insurance costs are threatening to cause a massive increase in the number of seniors who will be struggling to stay financially afloat during their golden years. Many of these people have turned to reverse mortgages as ways to supplement their retirement incomes, and if you are thinking of joining their ranks, you need to be sure your reverse mortgage is handled by a reputable lender.

Wherever there is money, there are people trying to steal it, and the reverse mortgage market is no different. It’s far from unusual for fraudulent reverse mortgage companies to demand huge up front application fees from their customers, all the time knowing that they have no intention of accepting them as borrowers.

The NRMLA

One sign that you might be dealing with shady reverse mortgage companies is if you are being asked to pay a large amount, say 5%, of the amount you expect to borrow, as an application fee. If you find yourself in that position, the first thing you should do is research the backgrounds of the reverse mortgage companies in question with the National Reverse Mortgage Lenders Association.

The NRMLA has been working to protect the interests of reverse mortgage applicants since 1997, and its website identifies approved reverse mortgage companies according to their states. The Department of Housing and Urban Development, or HUD, also has a website with information on various reverse mortgage companies. Both sites offer their resources at no charge.

The NRMLA website, in particular, is a terrific resource for those seeking information on reverse mortgage companies. It also gives you all the details involved in the process of applying for your reverse mortgage, and even offers a calculator which will tell you, based on the current market value of your home, how much money a reverse mortgage can bring your way.

The Code Of Conduct

Even better, the NRMLA has established a Code of Conduct which all its member reverse mortgage companies are required to honor. The Code of Conduct is written to protect the specific needs of older homeowners, and to keep member lenders from trying to use the applicants’ lack of knowledge concerning reverse mortgages against them

The NRMLA has also drawn up a Code of Conduct to which any reverse mortgage companies must agree before being listed on the NMRLA site as an approved lender. Their Code of Conduct requires that approved reverse mortgage companies be sensitive to the unique needs of senior citizens, and do nothing to take advantage of their unfamiliarity with the reverse mortgage process.

When you’ve spent some time looking over your financial options for retirement, and have become comfortable with the idea of a reverse mortgage, head for the NRMLA site to look for the approved reverse mortgage companies in your area. When you have settled on the lenders nearest your home, use the contact information provided on the site to set up in-person appointments. And if you can find people who have already been through the reverse mortgage process, and will share their experiences with you, so much the better!



Reverse Mortgage Explained

Wade Robins asked:


If you are a US homeowner approaching retirement, and have already realized that your pension, social security, or 401K will not be enough to let you maintain the lifestyle you have been able to afford during your working years, you may be considering a reverse mortgage. If you are, you should take advantage of the services offered by the National Reverse Mortgage Association.

Started in 1997, the National Reverse Mortgage Association has a decade of experience in assisting both seniors who want to use reverse mortgages to help fund their retirements, and lenders who want to offer reverse mortgages as part of their services.

For homeowners who have made the decision to preserve their financial independence through reverse mortgages, the Reverse Mortgage Association offers educational programs. For lenders who wish to offer reverse mortgages, the Reverse Mortgage Association has a Code of Conduct designed to safeguard interests of older homeowners, and which it expects its lenders to honor. It has also established, and strongly recommends for reverse mortgage lenders, training in effectively dealing with the needs of older borrowers.

What Is A Reverse Mortgage?

The programs overseen by the Reverse Mortgage Association help homeowners over the age of sixty two understand how to get a part of the home equity they have accumulated as tax-free income, while still keeping full title to their homes. Taking advantage of a reverse mortgage will allow a homeowner to avoid the monthly payments which result from borrowing against home equity in the traditional manner. The Reverse Mortgage Association also oversees the lenders who actually write the reverse mortgage loans and make the payments to the homeowners.

Reverse mortgages are ideal for senior homeowners because they will not have to be paid off until the homeowner is no longer living in the home at least half of the year, or decides to sell the home, or passes away. And in the event that the home sells for a price in excess of the balance borrowed against the home mortgage, the homeowner or his or her heirs will receive the extra funds.

Watchdogging The Lenders

The future demand for reverse mortgages in the US will only grow as the Baby Boomer generation enters retirement, so it is becoming increasingly essential that older homeowners have access to trustworthy lenders. The Reverse Mortgage Association has taken of the task of investigating the credibility and competence of reverse mortgage lenders so that they will reflect well on their profession.

By sponsoring an ongoing program of yearly seminars for its lenders, the Reverse Mortgage Association ensures that its members are kept up to date on all the aspects of the reverse mortgage industry, including the latest loan products and issues affecting senior borrowers. For more info see http://www.i-reversemortgages.com/Reverse_Mortgage_Loans on Reverse Mortgage Loans.

If you are facing retirement and struggling to cope with a vanished pension, badly managed IRA or 401K, and soaring health insurance premiums, your financial future may seem bleak. Taking out a reverse home mortgage from a member of the Reverse Mortgage Association will assure you of getting help from a lender who operates with integrity, and let you rest a little more easily when your retirement arrives.



Reverse Mortgage Info