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 Simplified

Reverse Mortgage * Reverse Mortgage Simplified

Reverse Mortgage Simplified   
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 income is not sufficient to survive.

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Home Sales Increase In '09 (Baltimore Sun)
First annual rise across much of Baltimore area since 2005 occurs as first-time buyers seize on tax credit and falling prices First annual rise across much of Baltimore area since 2005 occurs as first-time...

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To qualify you need to be a homeowner; be over 62 years of age own your home outright - or have a low mortgage; you must live in that home; and the property must meet minimum property standards. The money can be used for whatever you like - home renovations, vacation, pay medical expenses, new vehicle, paying off debts, or simply, to supplement income.


The loan is not taxable as it is considered to be a loan advance, not income, and no repayments are required whilst residing in the home, therefore an income stream is not required. The equity can be paid in three different ways: a lump sum; monthly for a fixed term; or as a line of credit. The loan can be restructured during the course of the loan.

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Some Social Security Taxable (Fox News)
If you collect Social Security, some of it might be taxable, depending on your total income and marital status.

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The loan is usually structured so that it is collected, including accrued interest and other charges when the house is sold or after death. It differs from a second mortgage or a home equity line of credit - as no income is required - because no repayments are required. You therefore cannot be foreclosed or forced to leave your home because you missed a payment.


The size of the reverse mortgage is determined by the type of reverse mortgage selected, the person's age, the current interest rate, the home's location and the home's value. The older the borrower - the larger the percentage of the equity that can be borrowed. The owner retains the title to the property.


The property must be the borrower's primary residence - usually a single family, one-unit home. However some programs accept two-to-four-unit buildings that are owner-occupied. Some will grant reverse mortgages on condominiums and manufactured homes - provided they were built after June 1976. Mobile homes and cooperatives are generally not eligible for a reverse mortgage.


The loan will need to be repaid when: the last surviving borrower passes away or sells the property; all borrowers permanently move out of the house; the last surviving borrower does not live in the home for 12 consecutive months - due to physical or mental illness; the borrower fails to pay property taxes or insurance; or the borrower lets the property deteriorate beyond reasonable wear and tear.


The heir, or the last surviving borrower, does not have to sell the property to repay the reverse mortgage - they can refinance the reverse mortgage with a traditional mortgage loan -or through the use of other assets.


Sounds great - but - do be aware of the possible down side.


Interest payments, which are not tax deductable, are added to the loan - with no repayments required - this can eat into the equity - as the interest compounds - diminishing the equity and leaving less asset for the owner or heirs.


The cost - interest rates, originating fee, closing fee and service fee - all apply and can vary.


Good news: you cannot outlive the loan agreement and you cannot be forced to sell your home to pay off the mortgage loan!


Although Reverse Mortgages have been around for some time - they have not been fully understood. However, it is expected that as the baby boomers enter their retirement years they will have greater understanding and therefore less aversion to this way of self funding their retirement.


Gay Redmile is the webmaster of several finance and investment sites. Having recently assisted her father in taking out a Reverse Mortgage - she realises how important it is to undertake research and fully understand this process. For further important information visit her site at http://bestreversemortgagesite.com

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Index of Articles about Reverse Mortgage

What Other Authors say about Reverse Mortgage

Cons of a Reverse Mortgage by Barry Waxler

Imagine paying $30,000 in costs to get a mortgage for $368,000 with a 9 percent interest rate. Who in their right mind would? Well, welcome to the cons of the reverse mortgage!The reverse mortgage is a...

Creating Consider with Reverse Mortgages- A history lesson and paradigm shift by Angella Conrard

Who ever thought that it would make sense to get a mortgage that would decrease your home equity? Well in certain instances it does. Lending philosophies have changed over history and they will continue...

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...

Mortgage vs. Reverse Mortgage- How do You Put Your Mortgage in Reverse? by John R. Blakefield

Many people look at the process of a mortgage and wonder how exactly do you put your mortgage in reverse?In order to understand a reverse mortgage, let's first investigate at a normal mortgage for a first...

Seniors can use a Reverse Mortgage to fund Annuities, Investments, and Insurance Policies. by Troy Shellhammer

For many seniors in or entering retirement, the prospect of purchasing long-term care, investments or annuities can be cut short by a lack of retirement income. Statistics show that 3 out 4 seniors will...

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...

Access your home equity with reverse mortgage by Antonio Redford

With the passage of time, contribution of financial institution is increasing in improving living standard of human beings. To offer exclusive financial services globally these institutions are launching...