Use home equity from a reverse mortgage first or as a last resort The flexibility of the Home Equity Conversion Mortgage (HECM) program provides seniors and retirees some different retirement income strategies using a reverse mortgage. Borrowers can choose to receive their reverse mortgage proceeds as a series of monthly payments, a line of credit,… Continue reading Reverse Mortgage First or Last Resort
Social Security income strategy by leveraging a reverse mortgage loan to receive maximum income. Reverse mortgages are being touted as a way to help seniors supplement their Social Security income, especially now that a once popular filing strategy has been eliminated. If you were counting on using the Social Security “file and suspend” technique once… Continue reading Using a reverse mortgage to replace Social Security “File-and-Suspend” strategy
Can a reverse mortgage help you reduce your debt in retirement? One of the best ways to maximize your retirement resources is to spend as little of your retirement income on debt payments. Debt payments not only add significant cost to your monthly budget, but they also require interest payments, for which you the borrower… Continue reading Eliminate Retirement Debt Reverse Mortgages
Beware of misleading reverse mortgage advertising Reverse mortgages are widely marketed to senior homeowners by well-known lenders, smaller brokerages and individual financial planners using most advertising channels, including TV, radio, print, Internet and social media. Many commercials have used well-known celebrities such as Fred Thompson, Henry Winkler, and more recently Tom Selleck to pitch the… Continue reading misleading reverse mortgage advertising
Using a term life insurance policy to repay a reverse mortgage… Some potential reverse mortgage candidates do not like the idea of having their homes sold to repay the loans. There may be several reasons why homeowners want the option of keeping their homes in their families after they move out or pass away, but… Continue reading Using Life Insurance Policy to repay reverse mortgage
How reverse mortgage loan amount is calculated on an HECM Reverse mortgage borrowers who opt for a federally insured Home Equity Conversion Mortgage (HECM) will be limited on how much they borrow. A reverse mortgage principal limit is based on three factors at the time you apply for the loan: your age, the total equity… Continue reading Reverse Mortgage Principal Limit Factors (PLFs)
Although a reverse mortgage can be a beneficial financial tool, many unscrupulous individuals and brokers use them as a vehicle to steal from seniors who need money and/or don’t fully understand how they work. Reverse mortgage fraud can cost homeowners thousands of dollars and/or their homes without them receiving any benefits from a reverse mortgage.… Continue reading Beware of these common reverse mortgage scams
Can I get a reverse mortgage if my home is in a flood zone? If you own a home that’s at risk of flooding, you will likely have to carry flood insurance to obtain and maintain a reverse mortgage. The National Flood Insurance Program aims to reduce the impact of flooding on private and public… Continue reading Reverse Mortgages and Flood Zones? Will my Property Qualify in a Flood Zone?
Should I consider a life settlement or a reverse mortgage? Seniors who have non-liquid assets but need income or an influx of cash have a few options. Two of the more common are reverse mortgages and life settlements. A reverse mortgage is a kind of home equity loan that enables senior homeowners to convert their… Continue reading Life Settlement Vs. Reverse Mortgage
How are reverse mortgages regulated Because of their complexity and federal government involvement, reverse mortgages are heavily regulated to help protect consumers. Home Equity Conversion Mortgages (HECMs) aka reverse mortgages are insured by the Federal Housing Administration (FHA) by both the U.S. Department of Housing and Urban Development (HUD) and the Consumer Financial Protection Bureau… Continue reading How are Reverse Mortgages Regulated? Changes to Regulations? Consumer Protections and Laws Covering HECM Reverse Mortgages.
Paying your property taxes with a reverse mortgage One of the leading causes of reverse mortgage defaults is the failure of the homeowner to pay property taxes on time. When homeowners obtain a reverse mortgage, they maintain title and property ownership, and thus responsibility for taxes, as well as insurance, utilities, and other expenses. Falling… Continue reading Paying your property taxes with a reverse mortgage
Why is there an age requirement for reverse mortgages? People who are familiar with reverse mortgages know that a homeowner must be at least age 62 to qualify. In cases where two homeowners are obtaining a reverse mortgage loan, both must be age 62 to be considered borrowers. Why is there an age requirement to… Continue reading Why Age Requirement Reverse Mortgage?
Questions to ask about the reverse mortgage process Obtaining a reverse mortgage requires people to take a big step and borrow against the equity they’ve built in their homes over the years, and in many cases agree to sell the home once they die instead of passing it on to heirs. It’s a transaction that… Continue reading Questions to ask reverse mortgage process
Questions to ask a prospective reverse mortgage lender Obtaining a reverse mortgage requires people to take a big step and borrow against the equity they’ve built in their homes over the years, and in many cases agree to sell the home once they die instead of passing it on to heirs. It’s a transaction that… Continue reading Questions to ask reverse mortgage lender
What is the history of reverse mortgages? Who invented the reverse mortgage? How long have they existed? How much have they changed since they were conceived? When did reverse mortgages start? The first known use of a reverse mortgage in the U.S. occurred in Maine in 1961. It was created by a savings and loan… Continue reading Reverse Mortgage History
How does bankruptcy affect a reverse mortgage? One of the primary reasons for taking out a reverse mortgage is the need for income or a line of credit. Sometimes, however, even after tapping into the value of a home, borrowers have trouble paying their bills, dealing with accumulating debt, or paying a large unexpected expense… Continue reading Reverse Mortgage Bankruptcy
Using a reverse mortgage instead of long-term care insurance Seniors in certain situations may want to use a reverse mortgage to pay for long-term care if the need arises instead of laying out the costs for long-term care insurance. There a few reasons why you might consider using a reverse mortgage to pay for long-term… Continue reading Pay for Long term care with a reverse mortgage.
Using a reverse mortgage in conjunction with long-term care insurance Long-term care insurance is designed to protect people from incurring the full cost of nursing home, assisted living or home health care, which can run as much as $80,000 to $90,000 annually. Many seniors want the protection offered by long-term care insurance but can’t fit… Continue reading Using a reverse mortgage in conjunction with long-term care insurance
Understanding reverse mortgage repair riders Seniors who go through the reverse mortgage process often have lived in the home for many years, long enough to have it completely paid off or almost paid. During that time, however, many have neglected parts of the home that are in need of repair. In fact, making repairs is… Continue reading reverse mortgage repair riders
Understanding reverse mortgage amortization If you have taken out a loan of any kind, especially a mortgage, you are familiar with the concept of amortization. This is the process by which a loan’s principal decreases with each payment. An amortization schedule is a table that breaks down how much of each payment goes toward reducing… Continue reading reverse mortgage amortization