Top Reverse mortgage pitfalls

Here are the top three reverse mortgage pitfalls to lookout for. You need to be aware of some dangers. 1) If you have to go to a hospice, nursing home or intend to live in another home and use the house as a second home the bank will call the debt due. This is definitely something [...]

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Reverse Mortgage – Yes or No.

The main reason people use a reverse mortgage is that they get to stay in their home for as long as they wish. If home prices rise at a significantly higher rate than interest on the loan, then reverse mortgages can be affordable, but prices don’t always rise. Another reason people use reverse mortgages is [...]

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Types of Reverse Mortgages

Here are three kinds of Reverse Mortgage: Home Equity Conversion Mortgages (HECM) It is administered by the U.S. Department of Housing and Urban Development (HUD). This program is often called a HUD or FHA reverse mortgage. FHA’s reverse mortgage program collects funds from insurance premiums charged to the homeowners. An upfront insurance premium of 2% [...]

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Think twice before getting

Reverse mortgages are designed for older homeowners who have a house with equity, and they want to unlock that equity and turn it into cash so they can use it for other purposes, like home repair or to pay off other debts.With a reverse mortgage the homeowner borrows money, but does not have to repay [...]

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When refinancing your Reverse Mortgage might make sense?

Now with home values up and interest rates low it might make sense to refinance a Reverse Mortgage. But it is  depending on your situation. HUD adjusts the county lending limits to keep pace with increases in home values every year, so it’s possible that not only has your home increased in value but the [...]

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A good idea only for…

Reverse mortgages are good ideas only for those homeowners who have paid off, or almost paid off, their traditional mortgages. If you have not completely paid off your existing home mortgage, you will have to use some of your reverse mortgage proceeds to do that, but whatever is left is yours to spend as you [...]

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Some reasons to take out a reverse mortgage

Some reasons to take out a reverse mortgage: You are kept on the title as owner of the property and will always own the property till you decide to sell.  You can have a mortgage and still qualify for a reverse mortgage. You will pay off the current mortgage with your new reverse mortgage and [...]

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Little equity, risk of foreclosure…

Homeowners at risk of foreclosure with little equity in the property are able to do what’s known as a “short refinance” to allow the homeowner to qualify for a Reverse Mortgage. Even if you think you don’t have enough equity in your home you may be able to work out a deal with your lender [...]

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Declining home values and Reverse Mortgage

What effect the decline in the housing market will have on Reverse Mortgages? If you already have a Reverse Mortgage and if your home values drop too much and the reverse mortgage they have becomes more than the homes value, you have nothing to worry about.  One of the best parts of a reverse mortgage [...]

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Loan balance and equity after years

 Reverse Mortgage, especially now with such low interest rates, does not involve giving up all of your equity to the bank.  Equity Sharing programs are beginning to be promoted by some companies, however, these are not Reverse Mortgages, and should be considered very carefully with an attorney and tax consultant.  True FHA insured Reverse Mortgages, and [...]

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