Consumer 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 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 [...]

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 [...]

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 [...]

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 Really Need an Annuity or Insurance?

The new Housing and Economic Recovery bill prohibits reverse mortgage companies from requiring borrowers to purchase financial products in order to qualify for a reverse mortgage. This arose out of concern for applying for reverse mortgages who were being taken advantage of by unscrupulous lenders and scam artists that tried to sell unnecessary financial [...]

Reverse Mortgages, Insurance, and Medicaid

There has been quite a bit of attention paid in the media lately to the relationship between reverse mortgage payments and Medicaid availability. Because much of the information obtained by the media is hearsay or conjecture, this article intends to weed out fact from fiction.
According to one website dedicated to lending information, “if you receive [...]

Should You Sell or Take Out a Reverse Mortgage?

As seniors consider supplementing their retirement with the equity of their home, many have difficulty deciding whether to sell the property or apply for a reverse mortgage.
Although selling the home may be financially advantageous, many seniors would much rather stay in their homes than go through the hassle of finding a new home and [...]

When the Loan Ends

Reverse mortgages are advantageous because 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 example, to move into an assisted-living facility).
So, what happens when [...]

Arm Yourself With Information to Prevent Being Taken In By A Reverse Mortgage Scam

New legislation has been put in place just to help prevent seniors from being taken in by scammers in the reverse mortgage industry. If you or a member of your family is considering a reverse mortgage, read the tips below to help protect yourself from unscrupulous lenders.
Con artists prey on those that are too [...]

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 [...]

Consumer Safeguards for Reverse Mortgage Borrowers

There’s always a large concern for the safety of the elderly in business and lending situations. Scam artists often prey on older people in an attempt to defraud them of their money. In the case of reverse mortgages, the concern of exploiting the elderly can be of great concern to borrowers, their children, or their [...]