Fees and Costs

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

Reverse Mortgage Costs

Reverse mortgage fees are standard for reverse home loans, 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 expenses, including an appraisal fee, repair fees, up-front mortgage insurance premiums, an origination fee, [...]

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 [...]