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 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 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 [...]

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 [...]

Steps to Applying for a Reverse Mortgage

Once homeowners have learned about the advantages of reverse mortgages and decided that a reverse mortgage is appropriate for their situation, they can begin taking steps to secure the reverse mortgage loan.
Stage One: Counseling
Prior to applying for a reverse equity mortgage, all candidates must obtain third-party financial counseling from a Department of Housing and Urban [...]