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

Reverse Mortgage * Reverse Mortgage

Reverse Mortgages Explained   
Robert Hutchinson

A 'Reverse Mortgage', also known as 'Equity Release', is a popular way to use your main asset (your home) to free up some cash for other purposes. In a standard loan, your income stream is used to 'qualify' for the loan. The bank will want to see that you have enough cash-flow from your job or other source of income in order to make the payments on the loan. By securing this forward loan on your house, the bank has extra security. After all, if you stop paying, they can take away your house. As the years go buy, you will build up 'equity', which is the difference between what your house is worth, and how much you owe on the loan, which will be reducing as you pay off principal.

A reverse loan, in contrast, requires no proof of income, no credit checks etc, you simply have to own the home you are borrowing against. The reason for this is that interest payments are 'rolled up' on the reverse loan - i.e they are added to the loan, and not repaid. Over time, of course, this starts to eat up your equity, because as each interest payment is added to the loan, interest starts being charged on the previous interest too!

Popular with older citizens, the reverse mortgage is often structured in such a way that the loan only becomes repayable on the death of the home-owner. Depending on the size of the loan and current market conditions, there may actually be no equity left when the loan is finally repaid, a matter only of interest to home-owners who prefer to leave something for their children. As with all loans, be careful not to default on ancillary charges, such as property tax, insurance, rates etc, as these could all lead to the loan being reclaimed early (foreclosed). Typically, the bank will have an option built in to the contract to increase your debt by paying these charges on your behalf, should you default, and this is not an option you want exercised, as you will then start paying interest on those charges too!

To sum up - reverse mortgages can be useful, but treat carefully - they can have a sting in the tail. Keep an eye on the outstanding balance every month, versus the value of your home for peace of mind.

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More People Skipping Mortgage To Pay Credit Cards (Market Watch)
U.S. consumers are starting to look like a frugal, debt-fearing lot as they pay down billions of dollars in credit-card obligations. But an alarming trend is emerging: A small but growing number of people...

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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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Robert Hutchinson writes for www.mortgagedown.com the site for free mortgage advice fast!

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Index of Articles about Reverse Mortgage

What Other Authors say about Reverse Mortgage

Reverse Mortgages - Funding Retirement by Dan Lewis

With people living longer and longer, funding retirement can become a stressful situation. Reverse mortgages can help home owners avoid worries about cash flow. Reverse Mortgages Reverse mortgages are...

Consider a reverse mortgage - as your last option by Tony Reed

Home buyers often save rigorously for their home, forgoing expenditures and making sacrifices to pay down the mortgage and save for retirement. At retirement they get to enjoy their dream home debt-free....

What is a Reverse Mortgage? by Stuart Simpson has a neat mortgage calculator FREE to use. Try it out at:

Simply stated, a reverse mortgage is a loan that enables homeowners (age 62 and older) to convert part of the equity in their home into a tax-free income without having to sell the home, give up the title,...

Reverse Mortgage Calculators - To Lend You a Hand by Bart Rutherford

Let's take a look at what the defination of a reverse mortgage is before talking about what a reverse mortgage calculator does. Reverse mortgage is what banks can offer to their clients above the age of...

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...

Who Could Benefit From A Reverse Mortgage? by Helen March

What is a "Reverse Mortgage?"Also known as a Home Equity Conversion Mortgage (HECM)a reverse mortgage,is a popular way older homeowners (62+) can convert part of the equity in their homes into tax-free...