How to use Reverse mortgage in a sentence
Home equity Helpful guide to reverse mortgage equity loans, with descriptions, eligibility, considerations.
Before contacting Guardian First Funding or another financial services company, consider if a reverse mortgage is something that may be beneficial to you.
These reverse mortgage products may have specific requirements.
Applying for a reverse mortgage is a big decision, and there are many variables involved.
The Home Equity Conversion Mortgage (HECM) Program offered by Wells Fargo is a reverse mortgage program that is backed by the FHA.Advertisement
Even if your income is non-existent, you should qualify for a reverse mortgage.
Can a reverse mortgage be used to construct a new well?
The beauty of a reverse mortgage is that you can use the proceeds for whatever you want.
As long as you have the equity and you qualify according to the reverse mortgage standards, you don't have to justify the funds to the lender.
There are many reverse mortgage opportunities available to adults aged 62 and older.Advertisement
A reverse mortgage is also called a home equity conversion mortgage.
A reverse mortgage allows individuals to convert their home's value into cash.
Those who obtain a reverse mortgage can rest assured that they won't lose their home.
The lender will not be able to go after your estate to receive any additional money, even if the home sells for less than the amount of the reverse mortgage.
Uninsured reverse mortgage opportunities are very different from those that are insured.Advertisement
There are some basic requirements that a reverse mortgage borrower needs to meet.
Individuals who borrow using a reverse mortgage are subject to property requirements.
Before you make the decision to obtain a reverse mortgage, you should talk with a certified HUD approved reverse mortgage counselor.
A certified mortgage counselor can also advise you of the potential disadvantages of obtaining a reverse mortgage.
The reverse mortgage may be an expensive choice.Advertisement
Borrowers should speak with a certified reverse mortgage counselor before they make any decisions regarding mortgaging their home.
Seniors can receive a monthly income from home ownership, but being aware of reverse mortgage pitfalls may help them avoid potential headaches.
There are some definite disadvantages to using a reverse mortgage.
A reverse mortgage may also affect the amount of need-based assistance you receive from government agencies such as Social Security, Medicaid and Medi-Cal.
The reverse mortgage pitfalls for a lender-insured mortgage include the interest rates on the insurance premium and on the mortgage.Advertisement
These counselors know all the advantages and disadvantages for each reverse mortgage type.
A reverse mortgage can give seniors financial independence in their golden years.
Every owner must also be eligible for the reverse mortgage.
The existing mortgage must either be paid off, or low enough to where the reverse mortgage can pay off the remaining balance.
Since there are different reverse mortgage products available, the requirements may differ from product to product.Advertisement
There is plenty of information available regarding reverse mortgages online, but you may still wonder, "How does a reverse mortgage work?"
The equity in your home is where the money comes from for the reverse mortgage.
You are not expected to make payments on the reverse mortgage as long as you use the home as your primary residence.
This will result in the reverse mortgage immediately coming due.
A reverse mortgage is not a magical program which gives seniors free money that they never have to worry about paying back.Advertisement
Potential borrowers looking to obtain a reverse mortgage should find a lender that is currently in business and accepting applications.The information below pertains to when Countrywide was still open for business.
There should be no mortgage on the home, or there should be a mortgage which can be paid off with the reverse mortgage.
Applicants must complete reverse mortgage education from a counselor approved by The U.S. Department of Housing and Urban Development (HUD).
Countrywide takes the stance that reverse mortgages are a great idea for people who have trouble making ends meet financially, and who qualify for a reverse mortgage based on the aforementioned criteria.
A reverse mortgage can indeed supplement a retired person's income considerably, but a reverse mortgage is not free money.Advertisement
You should never disregard the interest rate on a reverse mortgage.
Countrywide takes steps to make sure that applicants know there are other options available besides applying for a reverse mortgage.
A California lender reverse mortgage rate calculator can help you determine which mortgage is best for your financial situation.
Before you make that call it is important to educate yourself on the benefits - as well as the pitfalls - of a reverse mortgage.
Obtaining a reverse mortgage can be fairly easy, as the requirements are few.Advertisement
Most reverse mortgage calculators will give you the option to input additional information to receive a more accurate estimate from the lender.
Borrowers should carefully consider all of their options for a reverse mortgage in order to get the best deal and avoid any pitfalls.
Using a California lender reverse mortgage rate calculator can help individuals determine which mortgage offer is the best one for them.
There are qualifying factors necessary to become eligible for a reverse mortgage.
In this LoveToKnow interview, reverse mortgage specialist Grace Farenbaugh defines reverse mortgages while also revealing what you need to know before signing on the dotted line.Advertisement
A reverse mortgage is a mortgage where no payments are made.
Contact a reputable reverse mortgage expert.
A homeowner 62 years or over with a low balance lien, or even better, no lien on the property is the ideal candidate for a reverse mortgage.
Secondly, it should be noted that no income or assets need to be verified in order for a homeowner to qualify for a reverse mortgage.
Keep in mind that the older you are, the more money that will be made available to you through a reverse mortgage.
Grace Farenbaugh is a Reverse Mortgage Specialist with First Security Lending, an award winning mortgage broker and banker based in Burbank, California.
A reverse mortgage pays a set amount of money each month to the homeowner.
At that time, the home is sold and the reverse mortgage lender owns the home.
There is a range of costs associated with the reverse mortgage.
The reverse mortgage will need to be repaid in some situations.
What is the definition of a reverse mortgage?
A reverse mortgage is different from a traditional mortgage.
While a traditional mortgage is used to purchase a home, a reverse mortgage is used to tap into the equity of a home to provide the homeowner with funds either as a monthly income or in a lump sum.
The payment on a reverse mortgage comes due when the borrower moves out of the home as a primary residence or dies.
Since these special mortgage loans are designed for seniors in order to offer them a viable source of income after retirement, people who are below the age of 62 are not eligible to receive a reverse mortgage.
The main difference between a reverse mortgage and a traditional mortgage is the fact that the borrower does not have to make a monthly payment on the mortgage.
The main disadvantage to a reverse mortgage is the loss of valuable equity within the home.
Before applying for a reverse mortgage, potential applicants are required to discuss their options with an FHA-approved reverse mortgage counselor.
This professional will be able to answer any questions and to help potential borrowers figure out if a reverse mortgage is right for them.
It can be an excellent option for many homeowners; however, a reverse mortgage has its downsides.
With a reverse mortgage homeowners continue to live in their home and are responsible for the taxes, homeowner's insurance and home repairs.
A homeowner does not have to pay back a reverse mortgage as long as they are alive and living in the home.
Usually a lender will not offer a reverse mortgage on a mobile home.
To minimize fees, consider a federally-insured Home Equity Conversion Mortgage or look for a reverse mortgage offered by a state or local government.
Any second or third mortgages on the home or property must be paid off before the new reverse mortgage is granted.
Since a home's equity typically increases over time, the homeowner (or homeowner's estate) with a reverse mortgage usually can pay off the reverse mortgage when they sell the home.
The increased home equity is often more than enough to pay any interest charges that have accrued over the life of the reverse mortgage.
Younger homeowners may receive less cash from their reverse mortgage than an older homeowner.
A reverse mortgage does have other implications, such as at the time of death or permanently moving out of the home, the lender takes possession of the property.
For homeowners who are sixty-two years or older, a reversible or reverse mortgage allows the homeowner to convert a portion of equity into tax-free income.
The name reversible or reverse mortgage means your mortgage payments are reversed.
Many people wonder how a reverse mortgage works when they have an existing mortgage.
Once you no longer occupy the home, the sale of your home will pay off the reverse mortgage.
A reverse mortgage can be a good thing for people who are age sixty-two or older and who have equity in their homes, but consumers should be aware of reverse mortgage fraud complaints before starting the process of applying.
The largest issue with reverse mortgage fraud is the possibility of seniors losing their homes as a result of not fully understanding the reverse mortgage process.
Most reverse mortgage fraud complaints come from seniors who sign a power of attorney allowing the perpetrator of the fraud to enter into a reverse mortgage illegally leaving the seniors with no funds or home.
Another fraud consists of homeowners under the age of sixty-two who attempt to acquire a reverse mortgage with no qualifying senior residing in the home.
Mortgage lenders are very aware of this situation and an alarming forty percent of reverse mortgage applications submitted fall into this category according to Nelson Locke, CEO of Value Financial in Miami, Florida.
Still, some people attempt to pass themselves off as mortgage brokers and try to entice seniors who are nearing foreclosure by telling them that they can help them stay in their home with a reverse mortgage.
This scam involves an appraiser who over-values the home, a reverse mortgage is obtained, and then title and equity of the house is taken by the perpetrator who takes possession of the home, leaving seniors homeless and cash poor.
First they find a foreclosed and abandoned home and ask the senior to live in the home until a reverse mortgage can be obtained.
Finally, there are many mortgage companies and dishonest people who will tell seniors they can help them get a reverse mortgage for a fee.
The seniors who fall for this scam don't realize that to obtain a reverse mortgage they must first speak to a HUD-approved reverse mortgage counselor, who charges no fees whatsoever.
Often, the fraudulent fees can be as high as ten percent of the reverse mortgage funding.
Read the FBI Intelligence Bulletin on reverse mortgage fraud complaints.
This publication explains what a reverse mortgage is and clearly outlines what is fraud.
If they aren't, find another source for your reverse mortgage.
Never sign anything regarding a reverse mortgage that you do not understand.
Chances are they are an approved HUD lender and can introduce you to a HUD-approved counselor who will be able to answer all your questions about reverse mortgages, how they work, if you qualify, and if a reverse mortgage is right for you.
If you feel you do qualify for a reverse mortgage and aren't sure where to start, ask for assistance by calling a HUD office in your area.
The Home Equity Conversion Mortgage (HECM) is a reverse mortgage guaranteed through the FHA.
Since 2009, when the federal government increased the maximum home value to its current $625,000 limit, the demand for jumbo reverse mortgage loans has decreased.
Individuals seeking a jumbo reverse mortgage can contact Reverse Mortgage Lenders Direct to receive quotes from multiple providers.