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 - Reverse Mortgage Requirements

Reverse Mortgage * Reverse Mortgage Requirements

Reverse Mortgage Requirements   
Don Seibert

Since the Reverse Mortgage for Seniors program is all the rage these days, let's take a look at what is required to qualify for and to obtain a reverse mortgage.

In the United States, a person must be at least 62 years of age and own their own home to qualify for a reverse mortgage. While most condominiums do qualify, there are some types of co-op apartment arrangements which do not. Also, lower value properties, such as smaller mobile homes, probably will not qualify either.

Article to continue below----------------------------------------------

Lincoln Appraisal & Settlement Services Expands Wholesale Mortgage Clientele By Adding Genworth Financial (PR Newswire Via Yahoo! Finance)
Genworth Financial, a publicly traded global financial security company with more than $100 billion in assets and a presence in more than 25 countries, has recently joined Lincoln Appraisal & Settlement...

----------------------------------------------------------------------------


In a traditional mortgage, there is a great deal of emphasis on the creditworthiness of the borrower. In a reverse mortgage, that is not the case since the borrower will not be counted upon to pay off the loan. Even a pending bankruptcy may not slam the door on a reverse mortgage; however, it will probably slow the process down somewhat. The amount of equity you have in your home is the critical factor for a reserve mortgage. It is that equity that will be 'funding' the payments into the future and you can be assured that the lender will get necessary appraisals and surveys, etc. to be certain of the real value of your home.


The amount of a reverse mortgage loan is determined by several factors including the Federal Home Administration (FHA) or Fannie Mae (FNMA) appraised value of the home, its location, and the age of the borrower. Fannie Mae has a limit of $200,000 for reverse mortgages closed under its program, but there are proprietary loan products from commercial lenders which can carry higher limits.

Article to continue below----------------------------------------------

Pomeroy Gets Chairmanship Of Social Security Subcommittee After Panel Shakeup (The Fargo Forum)
BISMARCK (AP) — A shakeup on the U.S. House's influential Ways and Means Committee has left North Dakota Rep. Earl Pomeroy as chairman of a subcommittee on Social Security.

---------------------------------------------------------------------------


Unlike a traditional mortgage, there are no second or third mortgages allowed in a reverse mortgage deal, unless there is an increase in the value of the home after the reverse mortgage is taken out. This is because the home equity is planned to be drawn down to cover the payments (or "loan advances" as they are sometimes called) and there may not be adequate equity remaining to pledge toward a secondary mortgage vehicle.


To ensure that you enter into a reverse mortgage with your eyes fully open and to ensure that you are not taken advantage of or scammed, there is a Federal requirement that you must obtain financial counseling from a source that is approved by the Department of Housing and Urban Development (HUD). DO not discount this counseling. It is very valuable and can usually be obtained for free or at a very low cost. It is best that you get such counseling from an independent source, such as the American Association of retired Persons (AARP).


While there are obvious cash flow benefits to be derived through a reverse mortgage, there are also some drawbacks. One big one is the amount of up front costs associated with a reverse mortgage when compared to a traditional mortgage. A loan origination fee of 2% is typical and the FHA reverse mortgage insurance is another 2%. These are in addition to the normal closing items such as appraisals, surveys, title searches, etc. that one would expect. The AARP is attempting to initiate a program with the government that would minimize the upfront costs, but that is not yet in place. Anyway, as a result of these high closing costs, you should not consider a reverse mortgage option if you plan on living in the home for less than five years or so.


A senior citizen should carefully evaluate the requirements of the reverse mortgage and consider other, more conventional options, such a home equity line of credit or a second mortgage before moving forward to obtain a reverse mortgage. In any event the financial counseling required for reverse mortgages will serve to help you with these kinds of decisions.


Do you homework before committing to any sort of refinancing option. You'll be glad you did!

Don Seibert is a retired business executive intimately familiar with real estate mortgages and the needs of senior citizens. His website is www.retiree-finance.com and it has More Reverse Mortgage Information and many more free articles related to home refinance for Senior Citizens.

Who are the CPA Moms?      Your Tax Professional Forever!!!!

“CPA Moms - Tax Moms - EA Moms" are trade names given to Accounting and Tax Professionals who chose to work in an “relaxed” environment. Some "Moms" work from home, other work from personal offices. Not all are Moms, there are some Dads. We call them Mr. Tax Moms. CPA Dads or Enrolled Agents Dads.
Each Mom is independent. Once a client starts working with a Mom, the client will keep the same “Mom” year after year regardless of where the client moves or relocates. Being in a “relaxed” environment has many advantages. Lower overhead, faster response time, more availability, etc.
To be a member a CPA Mom, Tax Moms, or an Erolled Moms the Tax Professional must ALWAYS be in good standing with their state licensing agency, experienced, and must demonstrate a high level of ethics, professionalism and proficiency.
Tax Net Inc, the parent company for all CPA Moms, Tax Moms and Enrolled Moms, developed the marketing and on-line systems to help qualified Tax Professionals who "choose" work from their “relaxed” environment and offer better service at a lower price to the consumer.
Since the “Moms” do taxes and accounting of all complexities, there is always a Mom available for every level of work. Since each Mom has a private 800 number, you are just a phone call away, regardless of where you live.
For reliability and dependability of Tax Net, Inc, the parent company of the “Moms” organization click on the Better Business Bureau (BBB) icon.

To Join CPA Moms

Click for accredited member's reliablility report.

Privacy Policy    About Us    Disclaimer    Copywrited 2005  - 2010 & Developed by  Tax Net Inc

Index of Articles about Reverse Mortgage

What Other Authors say about Reverse Mortgage

Reverse Mortgage: One Suggestion For Your Retirement by Evelyn Miller

It's a scary thought. 40 years, the proportion of Australia's population aged 63 years and over will almost duplicate. With continual expansion in the cost of healthcare and current living expenses, and...

Reverse Mortgage Information - Who Qualifies For Reverse Mortgages by Charles & Susan Truett

Reverse mortgages can be a great solution for seniors who wish to remain in their home but are having difficulty making their monthly payments and meeting other financial obligations. If you are over age...

 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...

 Is A Reverse Mortgage for You? by Tabitha Naylor

Any individual who is considering a reverse mortgage has a very important decision to make. Most of the time, an individual who is considering this type of loan is doing so because he or she needs the...

 Reverse Mortgages by Sara Chambers

Perhaps you know what a mortgage is. A mortgage exists when a loan is taken out from a bank or another mortgage company for the purpose of purchasing a home. Payments are made to pay back the loan on a...

 Reverse Mortgage Simplified by Gay Redmile

A Reverse Mortgage, also known as 'equity release' is a financial process that allows seniors to convert the equity in their homes into cash. The main reason to do this would be because monthly retirement...