Monday 29 August 2011
Sunday 21 August 2011
reverse mortgage pros and cons 2011
What is a Reverse Mortgage?
A reverse mortgage allows you to access a portion of the equity in your home to obtain tax-free cash without having to make monthly loan payments.
Reverse Mortgages safe and is Government-Insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). The reverse mortgage was signed into law as a national program in 1988 and since its inception has helped thousands of homeowners safely access the equity in their homes, helping them better enjoy their retirement years.
To be eligible for a Reverse Mortgage loan, some key requirements are:
• Be at least 62 years of age or older
• Live in your home as your primary residence and have sufficient equity in it
• Be able to pay any existing mortgages through the Reverse Mortgage
• Live in a single family home, two to four-unit owner-occupied home, townhouse, approved condominium unit, or certain manufactured homes
HECM reverse mortgages do not require you to have a certain income or credit score thus making it possible for seniors to qualify unlike traditional forward mortgages.
Reverse Mortgage Pros and Cons
The upsides of reverse mortgages • You can choose how to receive the money: fixed monthly payment, lump sum, line of credit or some combination of these options. • Income from reverse mortgage generally does not affect Social Security or Medicare benefits. • If you “outlive the loan,” meaning you receive more in payments than your home is worth, you will never owe more than the value of the home, according to the Federal Trade Commission, or FTC. • Loan advances are generally not taxable. • Most loans do not have income requirements. • Homeowner retains title to home. • No payments are due until last surviving borrower dies, sells home or no longer lives in home as primary residence. • HECM programs allow borrower to live in nursing home or other medical facility for up to 12 months before loan becomes due. • After the home is sold and the loan and fees are paid to the lender, any remaining equity in the home belongs to you or your heirs.
The downsides of reverse mortgages • Reverse mortgage proceeds could impact Medicaid eligibility. • Borrowers must be at least 62 years old to qualify. • Lenders generally charge origination fees and other closing costs. • Lenders require free debt counseling prior to loan application. • Lenders may charge servicing fees during term of the mortgage. • Debt increases over time as interest is charged to outstanding balance of loan. • Most loans have variable interest rates tied to short-term indexes, such as the one-year Treasury bill or LIBOR. Fixed Rate Loans are available. • As home equity is used up, fewer assets are available to leave to heirs. • Interest is not tax deductible until the loan is paid off. • Borrowers are responsible for paying taxes, homeowners insurance, maintenance costs and other expenses. If they don’t, the loan may become due.
1. to learn more reverse mortgage information
2. to find out how much you can receive reverse mortgage calculator
what are the reverse mortgage disadvantages
A reverse mortgage allows you to access a portion of the equity in your home to obtain tax-free cash without having to make monthly loan payments.
Reverse Mortgages safe and is Government-Insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). The reverse mortgage was signed into law as a national program in 1988 and since its inception has helped thousands of homeowners safely access the equity in their homes, helping them better enjoy their retirement years.
To be eligible for a Reverse Mortgage loan, some key requirements are:
• Be at least 62 years of age or older
• Live in your home as your primary residence and have sufficient equity in it
• Be able to pay any existing mortgages through the Reverse Mortgage
• Live in a single family home, two to four-unit owner-occupied home, townhouse, approved condominium unit, or certain manufactured homes
HECM reverse mortgages do not require you to have a certain income or credit score thus making it possible for seniors to qualify unlike traditional forward mortgages.
Reverse Mortgage Pros and Cons
The upsides of reverse mortgages • You can choose how to receive the money: fixed monthly payment, lump sum, line of credit or some combination of these options. • Income from reverse mortgage generally does not affect Social Security or Medicare benefits. • If you “outlive the loan,” meaning you receive more in payments than your home is worth, you will never owe more than the value of the home, according to the Federal Trade Commission, or FTC. • Loan advances are generally not taxable. • Most loans do not have income requirements. • Homeowner retains title to home. • No payments are due until last surviving borrower dies, sells home or no longer lives in home as primary residence. • HECM programs allow borrower to live in nursing home or other medical facility for up to 12 months before loan becomes due. • After the home is sold and the loan and fees are paid to the lender, any remaining equity in the home belongs to you or your heirs.
The downsides of reverse mortgages • Reverse mortgage proceeds could impact Medicaid eligibility. • Borrowers must be at least 62 years old to qualify. • Lenders generally charge origination fees and other closing costs. • Lenders require free debt counseling prior to loan application. • Lenders may charge servicing fees during term of the mortgage. • Debt increases over time as interest is charged to outstanding balance of loan. • Most loans have variable interest rates tied to short-term indexes, such as the one-year Treasury bill or LIBOR. Fixed Rate Loans are available. • As home equity is used up, fewer assets are available to leave to heirs. • Interest is not tax deductible until the loan is paid off. • Borrowers are responsible for paying taxes, homeowners insurance, maintenance costs and other expenses. If they don’t, the loan may become due.
1. to learn more reverse mortgage information
2. to find out how much you can receive reverse mortgage calculator
what are the reverse mortgage disadvantages
Sunday 1 May 2011
Our website - Reverse Mortgage Information
If you are looking for up to date reverse mortgage information please visit our website
http://www.reversemortgagelendersdirect.com
http://www.reversemortgagelendersdirect.com
What is a Reverse Mortgage
Reverse Mortgage is a federally backed mortgage program specifically designed for those over the age of 62. These programs are currently helping over 100,000 seniors per year, so dont think you are alone in this search for a comfortable retirement.
Reverse Mortgages
Reverse Mortgages
- You can stay in your home
- No mortgage payments ( the bank pays you)
- No credit score or income required
- Receive monthly income, lump sum, or a credit line
Reverse mortgage lenders will consider approving you a loan if you own a home, are over 62 years of age, and have equity in your home .
To calculate how much you can receive ----> reverse mortgage calculators
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