reverse mortgage myths: Fresno Reverse Mortgage Myth #3 - A Reverse Mortgage Obligates My Heirs.
- 05/21/11 05:01 AM
Although a reverse mortgage does have some impact on your heirs, that impact is mostly from their uncertainty of whether or not they will be personally responsible for paying off the debt.A reverse mortgage is a non-recourse loan secured by the property. The lenders only recourse is to the property itself. What does that mean to your heirs?It means that if the home is worth more than the loan balance, then there is equity in the home. If there is equity the heirs may wish to either sell the home, payoff the reverse & keep the “change”. Perhaps they will … (0 comments)
reverse mortgage myths: Fresno Reverse Mortgage Myth #2 - I have to own my home free & clear to get a reverse mortgage.
- 05/17/11 04:08 PM
You don't have to own your home free and clear in order to qualify for a reverse mortgage. In fact, most reverse mortgages are used primarily to payoff the existing home loan. Using a reverse mortgage to payoff the existing loan enables the homeowner to have some financial breathing room by eliminating the monthly mortgage payment. If you take a look at the NRMLA (National Reverse Mortgage Lenders Association) consumer information website you can find answers to many common questions about reverse mortgages. Here's what they have to say about having an existing mortgage: (Excerpt from www.reversemortgage.org) "What If I … (0 comments)
reverse mortgage myths: Fresno Reverse Mortgage Myth #1 - The Bank Will Own My Home.
- 05/15/11 04:45 PM
Not at all. A reverse mortgage is a loan against the property. Just like the mortgages most of us have on our homes. It has terms and conditions that the borrower and lender must agree to and if the borrower does not fulfill those conditions the lender may foreclose. The borrowers responsibilities are these: Live in the home as a primary residence. Keep the home insured. Pay all property taxes, homeowners or property owners association dues. Maintain the home in satisfactory condition. Notice that there is no responsibility to make monthly mortgage payments. That is a requirement of regular mortgages not … (1 comments)
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