Basic Information

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 [...]

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 [...]

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. [...]

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 [...]

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 [...]

History of Reverse Mortgages

By now, most consumers have at least heard of a “reverse mortgage.” That is because these specialized loans have become increasingly popular in recent years. This article is dedicated to not only defining a reverse mortgage, but also providing a brief history how the loan originated in the United States.
Reverse mortgage loans are a special [...]

Reverse Mortgages and the Housing and Economic Recovery Act of 2008

The Housing and Economic Recovery Act of 2008 was put in place to “strengthen and modernize the regulation of the housing government-sponsored enterprises and expands the housing mission of these GSE.” Although the bill was primarily created to address the sub-mortgage lending crisis, legislators included provisions to regulate the reverse mortgage industry and offer greater [...]

What is Non-Recourse Debt?

Within the context of learning about reverse mortgages, the average consumer may come across the term “non-recourse loan” quite a few times. After all, reverse equity mortgages are indeed a type of “non-recourse debt.” So what, exactly, is non-recourse debt and how does non-recourse debt compare to other types of debt? This article explains what [...]

HECM vs. the Jumbo Private Reverse Mortgage

There are many different types of reverse mortgages available, each with their own lenders, fee schedules, interest rate structures, and more. Two of those mortgage types, the HECM and jumbo reverse mortgage, each offer specific advantages to meet unique borrowers’ needs. Not everyone will benefit from the same type of reverse mortgage, so learning about [...]

Top Reverse Mortgage Questions, Part 2

1. When do I pay back my reverse mortgage loan?
All loan payments are deferred as long as the property remains the borrower’s primary residence. There is no obligation to repay the loan until the owner dies, the home is sold, or the owner otherwise vacates the property for 12 consecutive months (for example, to move into [...]

Top Reverse Mortgage Questions, Part 1

1. What is a reverse mortgage?
A reverse mortgage is a special type of loan used to “unlock” the equity in older homeowners’ (ages 62+) homes. Reverse mortgages enable seniors to cash in on the equity in their homes without giving up ownership of the property. The tax-free income is a loan, and payments are deferred until [...]

Reverse Mortgages vs. Home Equity Lines of Credit

There are some similarities between reverse equity mortgages and home equity lines of credit. Both programs use equity in the property to generate cash flow for the homeowner, and both require the homeowner to pay all property taxes and insurance and utility payments.
Another similarity lies in payment options. Reverse mortgages loans offer several disbursement [...]

When NOT to Consider a Reverse Mortgage

A reverse mortgage is a type of loan that allows homeowners ages 62 and older to convert part of the equity in their homes into cash - without selling the property, transferring the title, or making monthly payments on the loan. While these loans are advantageous to some seniors’ situations, reverse equity mortgages are not [...]

Payment and Repayment of Reverse Mortgages

Reverse mortgages are an attractive option for senior citizens ages 62 and older who want the benefits of liquidity but have a large amount of their financial assets tied up in their home. Reverse equity mortgages are a special type of loan used to “unlock” the equity in older homeowners’ homes, allowing seniors to cash [...]

Basic Features of a Reverse Mortgage

A reverse equity mortgage can be an attractive option for some seniors, but this type of loan does come with a specific set of requirements and regulations. Any consumer considering using a reverse mortgage to unlock the equity in his or her home should carefully examine the terms of the mortgage before committing.
• Reverse mortgage [...]