home equity conversion mortgage: What Is A Reverse Mortgage? (Part 12)
- 12/05/09 03:53 AM
What Is A Reverse Mortgage? (Part 12) A 12 Part Series Part 12 - Application Process for a Reverse MortgageThe application process for a reverse mortgage takes about 30-45 days from start to finish, and includes a five step process: Step 1. Initial Application The initial reverse mortgage application begins the process. However, the lender can not incur any costs on your behalf until the applicants have completed counseling (Step 2). The application is non-binding, and can be canceled at any time during the process. The initial application will specify the reverse mortgage loan amount, interest rate, and fees and closing … (3 comments)
home equity conversion mortgage: What Is A Reverse Mortgage? (Part 11)
- 12/04/09 03:39 AM
What Is A Reverse Mortgage? (Part 11)A 12 Part Series Part 11 - Reverse Mortgage Interest Rates Adjustable Rate Reverse Mortgage Adjustable rate reverse mortgages have interest rates that increase or decrease as a market interest rate index changes. The two indexes that are used to determine the variable interest rates on reverse mortgages are the LIBOR (London Inter-bank Offering Rate) and CMT (Constant Maturity Treasury). CMT - CMT stands for "Constant Maturity Treasury". This is more commonly known as a the "Treasury Bill" or "T-Bill" yield curve rates. LIBOR - LIBOR stands for "London Inter-Bank Offered Rate". The LIBOR … (1 comments)
home equity conversion mortgage: What Is A Reverse Mortgage? (Part 10)
- 12/03/09 05:42 AM
What Is A Reverse Mortgage? (Part 10)A 12 Part Series Part 10 - Fees for a Reverse Mortgage Closing Costs The three largest closing costs in a reverse mortgage are the FHA upfront mortgage insurance premium, the origination fee, and title insurance. The two costs that are typically paid out of pocket are the appraisal and counseling. FHA Mortgage Insurance The upfront mortgage insurance premium is 2% of the maximum mortgage amount up to the HUD limit in the county the home is located in. The FHA insurance provides three guarantees: The homeowner can not "outlive" the reverse mortgage The homeowner … (3 comments)
home equity conversion mortgage: What Is A Reverse Mortgage? (Part 9)
- 12/02/09 04:36 AM
What Is A Reverse Mortgage? (Part 9)A 12 Part Series Part 9 - Reverse Mortgage Counseling Your home is probably the largest single investment you've made in your lifetime. Thus, it's smart to know more about reverse mortgages and decide if one is right for you! Housing counselors around the country are HUD certified to give homeowners impartial education about reverse mortgages. Reverse mortgage counseling is a mandatory part of the reverse mortgage application process, and is typically completed just before or after completing an application for a reverse mortgage. Reverse mortgage counseling can be done over the phone with … (1 comments)
home equity conversion mortgage: What Is A Reverse Mortgage? (Part 8)
- 12/01/09 05:42 AM
What Is A Reverse Mortgage? (Part 8)A 12 Part Series Part 8 - Using Reverse Mortgage to Purchase a Home Reverse mortgages are now available to Seniors who would like to buy a new home. Under HUD's "HECM for Purchase Program," Seniors can use a reverse mortgage to buy a home if: The youngest homeowner is age 62 or older The purchased home will be their primary residence The purchased home will be occupied within 60 days of closing No mortgage loan other than the reverse mortgage can be used to buy the purchased home The difference between the purchase price … (1 comments)
home equity conversion mortgage: What Is A Reverse Mortgage? (Part 7)
- 11/30/09 05:47 AM
What Is A Reverse Mortgage? (Part 7)A 12 Part Series Part 7 - Loan Limits and Distribution of Money of Reverse MortgagesThe maximum loan amount that is available through a reverse mortgage depends on five factors: the age(s) of the homeowner(s) - the older, the better; the current interest rate - the lower, the better; the appraised value of the home - the higher, the better; the remaining mortgage balance (if any) - the lower, the better; and location - which you can't do anything about. Distribution of Money from a Reverse Mortgage There are several ways to homeowners can receive … (1 comments)
home equity conversion mortgage: What Is A Reverse Mortgage? (Part 6)
- 11/26/09 09:53 AM
What Is A Reverse Mortgage? (Part 6)A 12 Part Series Part 6 - Outliving the Reverse Mortgage A reverse mortgage can not be outlived. As long as at least one homeowner lives in the home and keeps property taxes and homeowner's insurance current, the loan does not need to be repaid. In addition, because of the FHA insurance, no one will ever owe more than the home's value. A reverse mortgage can not become "upside down". Reverse Mortgages and Heir Inheritance A common concern for homeowners considering a reverse mortgage is making sure that their heirs not be saddled with debt … (1 comments)
home equity conversion mortgage: What Is A Reverse Mortgage? (Part 5)
- 11/25/09 04:21 AM
What Is A Reverse Mortgage? (Part 5)A 12 Part Series Part 5 - Reverse Mortgages, Income and Taxes Effects on Income A reverse mortgage is a loan against your home, not income. Therefore, the funds received are not subject to income tax and do not affect Social Security benefits. The IRS does not consider the proceeds from a reverse mortgage to be taxable income. In addition, reverse mortgages have no income restrictions. Tax Deductions The interest paid on a reverse mortgage is tax deductible. However, the tax deduction can only be claimed in the year in which the interest is … (0 comments)
home equity conversion mortgage: What Is A Reverse Mortgage? (Part 4)
- 11/24/09 06:53 AM
What Is A Reverse Mortgage? (Part 4) A 12 Part Series Part 4 - Pros and Cons of a Reverse Mortgage Why Should You Consider a Reverse Mortgage Allows the homeowners to stay in their home permanently. Pays off existing mortgages on the home. Simple to qualify for because credit scores and income are not considered. No monthly payments are due for as long as the homeowner lives in the home. The homeowner receives payments on flexible terms: Credit line for emergencies Monthly income Lump sum distribution Any combination of the above A reverse mortgage can not get "upside down" so the … (6 comments)
A reverse mortgage sells the home to the bankFalse. With a reverse mortgage, the homeowners keep the home in their names. The lender adds a mortgage lien against the property for the amount that is borrowed so that the lender will eventually get paid back when the property is sold. Heirs will not inherit the homeFalse. The estate inherits the home upon your death. There will be a … (2 comments)
home equity conversion mortgage: What Is A Reverse Mortgage? (Part 2)
- 11/22/09 08:08 AM
What Is A Reverse Mortgage? (Part 2)A 12 Part Series Part 2 - Reverse Mortgage Eligibility Requirements To be eligible for a reverse mortgage, you must: be a homeowner 62 years of age or older. The youngest homeowner must also be 62 years old or older; own your home outright, or have a low mortgage balance that is no more than approximately 60% of the home's value and that can be paid off at closing with proceeds from the reverse mortgage; you must live in the home; and the home must be your primary residence. You must also receive consumer information … (0 comments)
home equity conversion mortgage: What Is A Reverse Mortgage? (Part 1)
- 11/21/09 08:43 AM
What Is A Reverse Mortgage? (Part 1)A 12 Part Series Part 1 - Definition of a Reverse Mortgage A reverse mortgage is a Home Equity Conversion Mortgage (HECM) - it's a special type of home loan that allows senior citizens to convert a portion of the equity in their homes into cash. Reverse mortgages are offered through the FHA (Federal Housing Administration), and is available only to homeowners or home buyers aged 62 or older. A reverse mortgage is a safe plan that can give older Americans greater financial security. The equity that has built up in their homes over … (3 comments)
What Is A Reverse Mortgage? (Part 12) A 12 Part Series 
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