Reverse Mortgages.

Reverse Mortgage News and Information for Seniors.

Reverse Mortgage Headlines

Business calendar
Portsmouth Herald News, NH - 6 hours ago
Contact: For a free educational video or a personal consultation on the reverse mortgage program call Heather Johnson at 828-5732 or e-mail her at ...

HOME CALENDAR
Detroit Free Press, United States - May 11, 2008
Reverse Mortgage Seminar: For homeowners age 62 and over (and interested family members) who are looking for options to access their home equity without ...

Dennis Haber addresses merits of reverse mortgages
Newsday, NY - May 10, 2008
My dad, 71, wants to get a reverse mortgage. Is this bad timing with the housing market down? The expert: Dennis Haber, attorney at law, Jericho. ...

Retirees feel the pinch from inflation
Melbourne Herald Sun, Australia - May 10, 2008
Several financial planners suggest the under-utilised product, called a reverse mortgage and designed solely for the over-60s, could help the growing "grey ...

What's the catch: Do reverse mortgages really benefit seniors?
Times Colonist, Canada - May 10, 2008
There are differences between the two competing reverse mortgage products, but the basics are the same. They allow a person or a couple to convert up to 45 ...

Is a Reverse Mortgage Right for You?
WLBT-TV, MS - May 8, 2008
She counsels seniors and others on all aspects of home ownership, as well as reverse-mortgage requirements. "What you're actually doing is putting your home ...

Look before slamming it into reverse
Chicago Tribune, United States - May 11, 2008
If you qualify for benefits, you might qualify for other public benefits that may delaya reverse mortgage. Also, by waiting, less of your equity will be ...

Sydney Morning Herald

Credit crunch dogs retirees
Sydney Morning Herald, Australia - May 6, 2008
Illustration: Karl Hilzinger Many people may take out a reverse mortgage to provide themselves with a steady income. But what effect will the global credit ...
Bluestone repositions reverse mortgages The Financial Standard
all 2 news articles

Reverse mortgage specialist joins Wells Fargo
MyWebTimes.com, IL - May 7, 2008
Wendorf will work exclusively with senior homeowners seeking a reverse mortgage, a home financing program that allows homeowners to use the equity in their ...

Senior Lending Network Supports GrandRally 2008 in Washington, DC
FOXBusiness - May 10, 2008
World Alliance Financial Corp., a member of the KBC Group, is one of the largest reverse mortgage companies in the nation. Through its wholesale and retail ...

The reverse mortgage is a type of loan for homeowners who are over 62 years of age. The reverse mortgage makes it possible for older homeowners to access the equity in a property as a line of credit or monthly payments. These loans are typically repaid by sale of the property once the home has been vacated by the owners for a period exceeding 12 months.

This allows older homeowners to receive tax-free income without having to sell their homes. But there are some ongoing costs associated with the reverse mortgage. Interest is typically a variable rate tied to an index such as the one year T-Bill rate plus points which usually run between 1 and 3 percent. Additionally there may be a monthly service charge. Interest and service charges collected result in an increase in the loan amount.

Even if one has a home mortgage they may still be eligible for a Reverse mortgage. Often homeowners opt to pay off any existing mortgage but since a reverse is not a loan in the traditional sense the funds may not be used to incur additional debt but may be used to pay off same.

The funds received from a reverse Mortgage has no effect as to ones eligibility to receive Social Security or Medicare benefits. This is not true with regard to Medicare as any funds not spent in the month received will likely be counted as an asset and may affect ones ability to receive payments.

Before receiving a reverse mortgage homeowners are required to receive counseling to make sure they understand what a reverse mortgage is and how it works.

Reverse Mortgage Basics

The following applies to both government and private reverse mortgages.

In order to qualify one must be at least 62 years of age and own a home.
The homeowner retains title and therefor ownership of the property. The lending agent never owns the property, even after the owners have vacated the home.
The homeowner is responsible for payment of any and all property taxes and keep the property well maintained. If the owner(s) find this impossible then a special set-aside may be created from your mortgage.
Once the last surviving owner has permanently vacated the home the loan must then be repaid either by the owner(s) or their estate. After the loan has been repaid then any remaining funds go to either the owner(s) or the estate.
The amount one may receive depends on their age (in the case of a couple the youngest persons age applies), the value of the property, current interest rates and whatever upfront costs may apply. In all cases, the older the applicant is the more income they will receive.
Since the fees may be either financed or paid as part of the loan the homeowner will most likely only have to directly pay for an appraisal of the property.
The loan balance grows as the howmowner accesses funds from their line of credit or receives a monthly payment. In addition to a monthly service charge the lender will be charging interest on any outstanding ballance.
The total owed on a loan can never exceed the appraised value of the property. If the appraised value is exceeded lender or the federal government will absorb that loss.