|
Consider Different Reverse Mortgage Options
Charles Kirkendall
There are many different reverse mortgage options: single purpose reverse mortgages, federally insured reverse mortgages, and proprietary (private sector) reverse mortgages. Each option has different pros and cons that need to be considered when looking into taken out a reverse mortgage.
Single-Purpose Reverse Mortgages
A single purpose reverse mortgage is the lowest-cost type of reverse mortgages to obtain, but as the name indicates it can only be used for one specified purpose. They are typically offered by state or local government agencies. These loans a great for individuals who need cash for a specific purpose like paying property taxes or fixing up there homes. Here are descriptions for several different types of single purpose reverse mortgages:
Property tax deferral (PTD) mortgages are reverse mortgages that provide loan advances for paying property taxes.
Deferred payment loans (DPLs) are reverse mortgages providing lump sum disbursements for repairing or improving homes.
Federally Insured Reverse Mortgages
A federally insured reverse mortgage is the only reverse mortgage insured by the Federal Housing Administration (FHA). These reverse mortgage are one of the lowest-cost multipurpose reverse mortgages currently available. Overall they typically provide the largest total cash benefits of all the reverse mortgage options. The proceeds from a federally insured reverse mortgage can be used for any purpose. These loans are also known as Home Equity Conversion Mortgages (HECMs).
Proprietary Reverse Mortgages
A proprietary reverse mortgage is a mortgage product owned by a private company. These type of loans are more expensive then the other reverse mortgage types and should be approached with caution. Anyone looking into these type loans should get a comparison with a similiar HECM. One benefit of proprietary reverse mortgages are the higher home value limits. So, if you live in a home that is worth a lot more than the average home value in your county, a proprietary loan may give you greater loan advances than a Home Equity Conversion Mortgage (HECM).
As with any financial decision, you should get professional help to help you decide which option is best for your situation. Reverse mortgage counselors can help you evaluate each of your options and help you make an informed decision.
About the Author: Charles Kirkendall writes about reverse mortgages and other senior financial issues. Visit Reverse Annuity Mortgage Guide or Reverse Annuity Mortage Blog for more information and resources.
|
- Applying for a Home Equity Loan Online
Home equity loan should only be used as the last resort to solve your financial problems. Before you take such a step, first and foremost make a zero line, monthly budget where every dollar has a name...
- Home Equity Mortgage-Refinance
A home equity mortgage refinance may be a great way to go right now, before rates go up. Over the last few years everyone has heard about friends and family refinancing their home mortgage. Well, you may...
- Home Improvement Loans
Once you own a home, youll get the urge to make home improvements. Often, youll need a home improvement loan. Home Improvement LoansWhether youve lived in a home for years or just purchased it, youll...
- How Wells Fargo Home Equity Loans Work
Wells Fargo & Company is a specialized financial services company based in San Francisco, and is a provider of insurance, mortgage, investments, banking, consumer finance catering to more than 23 million...
- Reverse Mortgage - Putting Your Equity to Work
If youre like many seniors, your home is your largest asset, and although you are concerned about the thought of borrowing against it, your house may be the only way to increase your income. Rising real-estate...
- Obtaining a Home Equity Loan Online
Private lenders, banks, and mortgage companies are all setting up shop on the internet, and all make it possible to obtain a home equity loan online. Competition between lenders is stiff, so be sure to...
- When Not To Agree To A Home Equity Loan
Before you borrow money on your homes equity, think twice so you dont end up paying more than you expected.According to the Federal Trade Commission, homeowners-particularly elderly, minority and those...
- Types Of Cheapest Home Owner Loan Lenders
You have many choices when searching for the cheapest home owner loan lenders. Your choices can range from local banks, finance companies, online lenders and mortgage lenders. Banks have been offering...
- The Truth About Reverse Mortgages
When looking into reverse mortgage options, it can be hard to decipher between fact and myth. It is important to understand the aspects of the program to make sure that it is right for you and your situation.Simply,...
- Consider a Reverse Home Mortgage
You tried to put away money throughout your life for your "golden years." But with college tuition, weddings and ever increasing property taxes, it was rare to have much money left over to put into savings....
- What is a Reverse Mortgage?
A Reverse Mortgage is a popular but complex home loan just for senior homeowners. If you qualify for a Reverse Mortgage, you will not have to make monthly payments on the loan. Instead, the lender pays...
- Is A Reverse Mortgage The Right Option For You?
Reverse mortgages are designed to provide those who are retired, or near retirement with a way to keep on getting an income, or money to meet other expenses as they grow older. While it may not be the...
- Reverse Mortgage Answers
A reverse mortgage, also called the Home Keeper mortgage, you borrow against the value of your home and receive loan proceeds according to the payment plan that you select. Unlike a traditional home equity...
- How Do You Know if You Need a Reverse Mortgage?
With the growing popularity of Reverse Mortgages across the country, more and more seniors are asking themselves, "Do I need a Reverse Mortgage?" This question can be answered by using several different...
- Home Equity Refinancing and Home Equity Loans
What are home equity loans, home equity lines of credit, and home equity all about and what is the deal with home equity refinance? The following article will help you answer all of these questions.For...
- Reverse Mortgage: An investment for your future
As seniors today grow into retirement, more and more are finding that their savings and retirement plans are less and less unable to cope with the rising cost of medical services, inflation, and the burden...
- The End of Reverse Mergers
The End of Reverse MergersByWilliam CateReverse Mergers are the most expensive way possible to take your private company public in the United States. While the front costs are usually under US$75,000,...
- Reverse Mortgages
Reverse (lifetime) morgages are different from ordinary home morgages, in that they dont require payment, but instead allow the borrower to acquire a debt during their period of property ownership. The...
- The Reverse Mortgage... What The Heck Is It Anyway?
Are you 62 or older and own your own home? Then, you probably qualify for a reverse mortgage.
But, what the heck is it anyway? Well, if you still have a conventional mortgage ... or had one until you burned...
- Home Equity Loan Scams: Equity Stripping
For many people, home equity loans are quite useful. They allow them to make necessary home improvements and increase the value of their homes. Unfortunately, in addition to lenders who are interested...
- Yes, You Really Can Invest In Real Estate Without
Do you want to get involved in investing in real estate but dont seem to have any extra money in the bank? This is a common problem, but what you may not realize, is that you can start investing with...
|
| | |
