Author Archive
How NOT to Use Reverse Mortgage Money
Reverse mortgages are unique types of loans that are based specifically on the borrower’s eligibility. To be eligible for a reverse mortgage, the homeowner must:
• Be at least 62 years of age
• Own the property outright or have a low enough mortgage balance that the mortgage can be paid in full at closing using proceeds [...]
The Expanding American Homeownership Act and Reverse Mortgage
In November 2007, US Senator Jim Talent introduced the Expanding American Homeownership Act.
Since 1934, the FHA has helped more than 34 million families purchase homes with affordable mortgages and fair payment terms. Still, many experts feel that the agency needs to adapt to today’s market place. The ultimate intent of the Expanding American Homeownership Act [...]
Reverse Mortgage Marketing
With the growing popularity and number of people taking out reverse home mortgages on the rise, marketing strategies are becoming more uninhibited. With more companies using tricky and ill-intended marketing tactics, some older homeowners may find themselves unable judge the credibility of a lender or company by its advertisements.
Many companies have started using [...]
Reverse Mortgage Statistics
A reverse mortgage can be defined as a special type of loan used to release the equity in senior homeowners’ homes, allowing older homeowners to realize the equity in their homes without conceding any ownership of the property.
Because of the many desirable aspects of reverse mortgages, this type of loan tends to be a hot [...]
Reverse Mortgage and Lender Responsibilities
Today’s reverse mortgages were created to include many features that protect seniors from reverse mortgage fraud unscrupulous lenders who wish to scam or prey on seniors. In many cases, seniors aren’t aware that they are granted numerous rights and protections when entering the lending and borrowing arena.
Consumer safeguards are in place to [...]
Fees, Costs, and Payments During the Life of a Reverse Mortgage
Loan fees are standard for reverse mortgages, as with any mortgage product. While a somewhat unique financial product, a reverse mortgage is still a loan that has a lender, borrower, repayment terms, and fees. Borrowers can anticipate paying several reverse mortgage costs and fees, including: an appraisal fee, repair fees, up-front mortgage insurance premiums, an [...]
Top 10 Reasons Homeowners Get a Reverse Mortgage
By now, most people know why reverse mortgages got their name: the cash flow is reversed. In a traditional mortgage, the homeowner makes monthly payments to the lender and the equity in the property increases as the mortgage balance decreases. The best feature of a reverse home mortgage is that the senior homeowner (62+) does [...]
Reverse Mortgage, Life Insurance, and Inheritance
As stated previously, reverse mortgages are advantageous to senior homeowners for a number of reasons. Because all reverse mortgage loan payments are deferred as long as the property remains the borrower’s primary residence, there is no obligation to repay the reverse home mortgage until the owner dies, the home is sold, or the owner otherwise [...]
The FHA and Reverse Mortgages
The FHA (Federal Housing Administration) was established in 1934. The organization was created to help borrowers during the bankrupt housing market of the Great Depression.
Today the FHA protects the interests of lenders and borrowers alike. The organization supports lenders by insuring bank loans, which guarantees lenders that loans will be repaid in the event [...]
Finding an Approved Reverse Mortgage Lender
There are many reverse mortgage lenders marketing themselves to senior homeowners. All one has to do is turn on the television during typical business working hours and to see commercial after commercial targeted to retired homeowners.
Because of the recent surge in reverse mortgage loan popularity, many seniors are jumping on the reverse mortgage bandwagon. [...]
The New Housing Law and Reverse Mortgages
President Bush signed a new housing bill on July 30, 2008, that raises the amount of money seniors can borrow on reverse mortgages, and lowers the cost of attaining that cash. Although this bill is, for the most part, a move in the right direction, seniors still need to be cautious when spending their home [...]
California Senate Bill 1609 and Reverse Mortgage
In June 2006, Governor Arnold Schwarzenegger signed California Senate Bill 1609. By doing so, he added another layer of protection against financial abuse of elders. The signing ceremony was held at Palo Alto’s Avenidas, a 35 year-strong non-profit agency serving seniors and their families/caregivers.
California Senate Bill 1609, authored by California Senator Joe Simitian, and coauthored [...]
Reverse Mortgage or Rent Out
Many seniors face the inevitable need to economize when they enter retirement. While some older homeowners can still enjoy a comfortable quality of life, most have to adapt financially. A reverse mortgage or reverse home mortgage is one solution. Information about reverse mortgage pros and cons could help seniors make better financial decisions. Reverse mortgage [...]
Ohio, Pennsylvania, and Texas Reverse Mortgage Success Stories
Plano TX
For 88-year-old Betty Marshall, a blue scooter symbolizes financial freedom. She bought the scooter with money she and her husband, Freddy, received from their reverse mortgage lender after obtaining a Texas reverse mortgage. She still seems awestruck by the fact that they receive money from, instead of sending checks to, their lender.
“Every tenth [...]
California Reverse Mortgage Success Story
Why are so many retired homeowners turning to reverse equity mortgages to supplement their income? There are several reasons that reverse mortgage loans have become popular. America is seeing the emergence of a growing senior population that is confronting anxieties about the status of pension plans and retirement funds.
In America, reverse mortgages are a special [...]
The 2007 AARP Survey on Reverse Mortgage
More and more senior homeowners are taking advantages of the conveniences of the reverse mortgage industry. The popularity and widespread exposure of reverse mortgage loans is garnering the attention of many groups geared toward seniors. One such organization is the AARP, or American Association of Retired Persons, which is a non-government organization and special interest [...]
Equity Key vs. Reverse Mortgage
Many older homeowners are choosing to seek information on reverse mortgages because they want to supplement their retirement income with their home equity. Reverse mortgage programs can be advantageous because all loan payments are deferred as long as the property remains the borrower’s primary residence.
The recent attention surrounding these loans has caused some seniors [...]
Do You Qualify for a Reverse Mortgage?
Reverse mortgage lending has gained a lot of popularity with senior homeowners lately because the money seniors receive helps them live in your homes longer and more comfortably. However, all prospective borrowers must meet with an independent counselor before they are able to apply for a reverse mortgage program.
Financial counseling sessions are designed to [...]
Can I Use a Reverse Home Mortgage to Avoid Foreclosure?
The recent popularity of reverse mortgage lending is causing a stir among many retired Americans who own their home but still struggle to pay their real estate taxes and other bills.
Real estate taxes are a particular source of anxiety for many, because a home can be foreclosed due to delinquent tax payments - even [...]
Why Reverse Mortgages are Popular
Reverse mortgages have been around for decades; however, reverse mortgage loans have garnered much more popularity and attention in recent years. In fact, the number of reverse home mortgages issued in 2007 doubled those the number issued in 2006. Now advertisements for these loans are seemingly everywhere. Many reverse mortgage companies have even employed celebrity [...]