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

This Mortgage Works In Reverse (The Fredericksburg Free Lance-Star)
Gary Onks answered more than 30 questions about what reverse mortgages are and how they work during Tuesday's Money Talk$. He is the regional branch manager of Reverse Mortgage USA in Spotsylvania County....

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


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

Coffey: Details On Social Security Phone Number, Benefits Spotlighted (Chattanooga Times Free Press)
Q: Mrs. K. of Ooltewah asks: “A friend of mine tells me that the Chattanooga Social Security office has a new telephone number. Does this mean I will be able to talk to someone in the office? In...

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


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

How to Know if a Reverse Mortgage Is Your Best Option by Charley Hwang

Along with aging comes the fear that your funds might not last as long as you do. A reverse mortgage is perfect for this scenario. Instead of living on your social security payments from week to week or...

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...

How A Reverse Mortgage Works by Brad Stroh

Ever wonder how a reverse mortgage works? For folks that have lived in their home for a long time, they may very well be sitting on a gold mine. Home prices have increased greatly over the last thirty...

Reverse Mortgages - Are They Only For Suckers? by Felicity Walker

It sounds too good to be true- a home loan that you never need to pay back. No monthly repayments, nothing - for as long as you're alive or live in your home. Welcome to a reverse mortgage - it may sound...

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...