Reverse Mortgage
The Complete Guide to Reverse Mortgages: Turn Your Home Equity into Instant Income!
by Tyler Kraemer

This book was so helpful in informing myself and my parents as to the options available for them. It was easy to read and easy to understand. It gave many helpful hints and helped us figure out if a reverse mortgage was approriate for them.

It is essential if you or someone in your family is considering, or wants to learn more about, a reverse mortgage loan. It walks you through the process from borrowing to repayment in a conversational, easy-to-read format. You can read about real life situations that are very helpful for you to see how a reverse mortgage can work for you.

The book provides precise information on each of the types of reverse mortgages that are available. You will find information about the ways in which you can receive your payments, and all of the incumbent fees and costs that may come with this kind of loan are revealed. It outlines how to protect yourself and how you are already protected. Checklists are provided covering all the points to consider before making each decision, such as how to choose a lender.

     

Reverse Mortgage - Ins And Outs Of Reverse Mortgages

Reverse Mortgage * Ins And Outs Of Reverse Mortgages

Investing: The Ins And Outs Of Reverse Mortgages   
Jeffery Voudrie

Reverse mortgages have been around since 1989, but they are rapidly gaining in popularity.

The complexity of reverse mortgages makes it difficult for the average senior to separate myth from reality. Let me help you decide if one is right for you.

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Desperate Condo, Homeowner Groups Given New Way To Grab Overdue Fees (Miami Herald)
Revenue-starved condominium and homeowners associations struggling to keep the taps running and the lawns mowed have found a novel way to squeeze money from units that don't pay what they owe.

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I believe that the reverse mortgage can work effectively for seniors in the right situation. I'm also concerned that they are being heavily promoted to seniors who shouldn't be using them. Last week, I explained the ins and outs of interest-only mortgages and how they can be a valuable tool for some seniors. I also warned readers against the option-ARM mortgage. Those articles can be found at www.guardingyourwealth.com.


The number of reverse mortgage originations doubled between 2003 and 2004. These numbers may continue to double each year. The media is filled with sales pitches for these mortgages, promising easy money and painless solutions to senior's financial problems.

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Social Security Topic Of Chester Library Program (The Progress)
CHESTER – “Social Security: Know the Facts” is the topic at a Senior Lunch n Learn” at noon on Monday, March 8, at the Chester Library.

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You must be at least 62-years old to get a reverse mortgage. They are designed to help financially strapped seniors meet their living expenses and to stay in their home. A reverse mortgage allows the homeowner to tap into their home equity without having to make monthly payments. So it can increase the money available for expenses without adding to those expenses.


Reverse mortgages allow you to receive money in several ways. The most popular is the equity line of credit. This way you only borrow money as you need it. You can also receive a lump sum or fixed monthly checks for the rest of your life, much like an annuity or pension. You can even receive a combination of these options. The amount you receive depends on your age, the value of your home and even the area in which you live.


A reverse mortgage is still a loan, but it's not paid back until the last mortgage holder dies, your home is sold or it's left unoccupied for 1 year. If you and your spouse go into a nursing home and don't occupy the home for 1 year, then the loan becomes due and your house must be sold. You (or your heirs) would receive any money left over after the reverse mortgage is paid. If the house sold for less than the loan amount, the lender would have to eat the loss.


Lenders won't allow you to borrow the full value of your home. Depending on the program and other variables, you may only be able to access 60% of your home equity. It can be far less than that. Fees can be very high and options can vary widely from one provider to the next, so making accurate comparisons between providers can be very difficult.


I believe that a reverse mortgage can work well for seniors who have a limited income and wouldn't otherwise be able to make it without tapping into their home equity. A reverse mortgage can be a low-risk way for seniors to remain in their home for the rest of their lives. That's why HUD created reverse mortgages in the first place, to help cash-strapped seniors stay out of poverty without losing their homes.
A reverse mortgage shouldn't be used, though, until the money in Certificates of Deposit and other investments is already gone. A reverse mortgage should be the source of last resort.


That's certainly not the message you get from reverse mortgage providers. They show middle class seniors now free to travel or buy that nice new car. Too often, seniors are being enticed into these mortgages by the idea of it being 'free' money. It isn't. If you spend your home equity now on non-essential purchases, you won't have access to that money later should you really need it.


I think a reverse mortgage is wrong for those being tempted to live beyond their means. Even worse is when financial advisors encourage proceeds from a reverse mortgage be used for other investments, such as equity indexed annuities.


Be very hesitant if you are approached by a mortgage broker by phone, seminar or mail. Remember, using money from your home isn't 'free' money. Spending it is no different then spending money in a CD or taking your principle out of a mutual fund.


Have a financial question? Send me an email and I'll personally respond, free of charge. Go to www.guardingyourwealth.com and click on 'Ask Jeff'.


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I'd like to offer you a complimentary copy of this new report. If you're
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In addition to being a nationally syndicated columnist and Certified Financial Planning Practitioner, Mr. Voudrie provides personal, private money management services to clients nationwide.


Nationally-syndicated financial columnist and Certified Financial Planner® Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. He'll answer your financial question - FREE at www.guardingyourwealth.com.

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Index of Articles about Reverse Mortgage

What Other Authors say about Reverse Mortgage

Reverse Mortgage: A Dignified Way For Retirees To Supplement Income And Take Care Of Expenses by Vishy Dadsetan

For many Americans reaching the retirement age, the equity build up in their home is their only real asset. Reverse mortgage is a way to tap into this asset and create a stream of income needed for retirement...

Just What Is A Reverse Mortgage? by Copyright ©2007 Carl DiNello

It's very common today to find many retired people having difficult financial times trying to live on a small pension, or on an even smaller Social Security Check. Trying to keep up with their bills can...

Realize the power of equity with reverse mortgage loan by Antonio Redford

For decades mortgage loan was in practice. People used to take loan against their equity on their fixed assets but it was never considered as a good way to get money as chances of loosing asset were high....

Reverse mortgage: Helping hand when you are in distress by Rizwan Ullah

If you are retired and alone and need financial support, nobody will be there to even listen to you. Your kids are married and they are on their on their own. They are so much tied with their own commitments...

Reverse Mortgage Calculator by Troy Shellhammer

Most seniors who are interested in learning more about the Reverse Mortgage process will often use a Reverse Mortgage Calculator. Most online reverse mortgage calculators require the current value of the...

Mortgage: for those twilight years by Maryann

Tracing back, the concept of reverse mortgages began when one good soul, Nelson Haynes of Deering Savings and Loans wanted to help out the widow of his high school football coach. Today that small act...

Reverse Mortgage Explained by Ken Chukwell

Can't remember how many times I've been asked "What is a reverse mortgage"? Reverse mortgages are a great way to get a loan using your primary asset. As in all cases of financial lending, the flexibility...