hecm: Can I Pay Off My HECM Reverse Mortgage Early?
- 11/20/16 11:14 AM
Let’s say you get lucky and win the lottery or get a big inheritance someday. Are you allowed to pay off the HECM reverse mortgage in full? Absolutely! There is no prepayment penalty or limitation on paying off your reverse mortgage balance in full at any time. Now, having said that, it may be a good idea to keep a small balance on the reverse mortgage and not pay it off in full. This is particularly the case if you have one of the LIBOR programs that come with the option to take proceeds in the form of a line of credit. … (0 comments)
hecm: FHA's Home Equity Conversion Mortgage (HECM) aka "Reverse Mortgage"
- 05/24/10 03:45 PM
Summary: The Home Equity Conversion Mortgage (HECM) program enables older homeowners to withdraw some of the equity in their home in the form of monthly payments for life or a fixed term, or in a lump sum, or through a line of credit. In addition, the HECM mortgage can be used to purchase a primary home when the borrower is 62 years of age or older and is able to use cash in hand to pay the difference between the reverse mortgage and the sales price plus closing costs for the property. Purpose: To be eligible for a HECM mortgage, current … (0 comments)
hecm: Using a Reverse Mortgage to Plan For the Future
- 04/03/10 06:33 AM
Hi All, Another story about a great couple using a reverse mortgage to improve their golden years. Although they were high school sweethearts, this couple has only been married just a few years. The home they live in is 30 years old and in great shape. A single story it is a perfect place to stay for the long haul. And that is just what they want to do. With a very small mortgage on the property now, and the blessing of all the adult children, they will use the reverse mortgae will payoff the existing loan. That will increase their monthly cash flow … (0 comments)
hecm: No Income, No Credit Purchase Loan*.... Really? Almost..... if you are over 62
- 01/25/10 04:30 PM
years old, have a substantial down payment, and are buying a primary residence you may want to research FHA's Reverse for Purchase Program. FHA defines "HECM for Purchase" as a real estate purchase where title to the property is transferred to the HECM borrower, which the borrower will occupy as a principal residence, and, at the time of closing, the HECM first and second liens will be the only liens against the property. There are 3 Major Benefits To Senior Homebuyers Gives senior buyers who are downsizing more purchasing power than if they had to pay all cash Designed to allow your seniors … (0 comments)
hecm: Reverse Mortgage - What is it exactly?
- 12/10/09 01:20 AM
Reverse Mortgages are a type of home loan. Most reverse mortgages are a HUD/FHA insured home loan that allows you to liquidate some of your equity in order to payoff existing mortgages as well as generate additional cash flow. They are called HECM Loans. HECM stands for Home Equity Conversion Mortgage. There are 3 types of HECM Loans. Adjustable Rate HECM (the original FHA Reverse Mortgage!) Fixed Rate HECM HECM For Purchase (either Fixed or Adjustable) Reverse Mortgages are regulated and insured by the Federal Housing Administration (FHA). By law, you can never be forced to sell your home of move. … (2 comments)
hecm: Snapshot of a Reverse Mortgage
- 11/02/09 02:47 PM
What Is Reverse Mortgage? (edit/delete) Reverse Mortgages are a type of home loan. Most reverse mortgages are a HUD/FHA insured home loan that allows you to liquidate some of your equity in order to payoff existing mortgages as well as generate additional cash flow. They are called HECM Loans. HECM stands for Home Equity Conversion Mortgage. There are 3 types of HECM Loans. Adjustable Rate HECM (the original FHA Reverse Mortgage!) Fixed Rate HECM HECM For Purchase (either Fixed or Adjustable) Reverse Mortgages are regulated and insured by the Federal Housing Administration (FHA). By law, you can never be forced … (1 comments)
hecm: Informative Video by AARP on Reverse Mortgage, Rescue or Trap?
- 10/27/09 06:14 AM
I just finished watching this video from "Inside E-Street" by AARP. An extremely balanced piece on reverse mortgages. The video is a half an hour in length and is packed all the way through to the end with great information. I heartily recommend listening to the whole piece. http://link.brightcove.com/services/player/bcpid24036493001?bctid=44798109001 They don't really mention all othe other options that senior homeowners should look at, besides a traditional home equity line. So I will fill you in here. Alternative Options that should be looked at when considering a reverse mortgage. Regular Line of Credit City, County & State Property Tax deferral programs Selling … (0 comments)
hecm: Reverse Mortgage Suitability
- 10/24/09 05:14 PM
Here are a few situations when a reverse mortgage is not a wise choice. A reverse is not the right loan for short term needs. If you only need the money for a short period of time and are planning on paying it off prior to 5 years, a reverse mortgage is just not an appropriate financial tool. The upfront closing costs will make the cost of the money (APR) non competitive. The minimum recommended amount of time is five years. Both homeowners should be on title for a reverse mortgage. If your spouse is under age 62 beware of lenders … (1 comments)
hecm: This Year is Flying too Fast!
- 08/20/09 01:05 PM
I can't believe that it is almost the end of August! I'm seeing Halloween items in the store and the Back To School Sales are almost over. Time really does go faster and faster as we age. I have a theory about that. (Not an original one to be sure!) The longer you live, the shorter a year is in relation to your age... so when you are 5 a year is 20% of your whole life! When you are 20 it's only 5%, and when you are my age its 1.8% of my whole life. (You do the math! I'm not going … (3 comments)
hecm: Reverse Mortgage To Pay For Home Health Care
- 08/17/09 03:58 PM
Mrs. H, in Southern California just signed her loan documents on a reverse mortgage. At over 80 years old she qualified for an amount sufficient to pay off her current loan and establish a line of credit for over $300,000.00. With the advice of her financial planner, and the blessing of her children, she left the money in a line of credit where it will grow. Her goal is to use the funds to pay for in home health care at such time as she may need it. Since she hasn't "borrowed" the available funds in the line of credit, her equity in the home is far greater … (3 comments)
hecm: Have Fun With This Reverse Mortgage Quiz - Answers
- 08/13/09 05:48 PM
How much do you really know about reverse mortgages? Take this quiz and check back tomorrow night for answers. Have fun! Reverse Mortgage Quiz 1. The minimum age to qualify for a reverse mortgage is, a) 60 b) 62 c) 65 d) 70 2. How is title held on a reverse mortgage? a) Title to the property does not change. b) The bank holds 50% and homeowner 50% of the property. c) FHA Holds Fee Title - Borrower has Life Leasehold Title. d) Borrower has a Life Estate in the property, bank is the remainderman. 3. If one borrower on title passes, … (1 comments)
hecm: Example of a Purchase Scenario using a Reverse Mortgage
- 08/07/09 10:27 AM
In this post - An example of a way the HECM For Purchase could be used. I always find that if I can place new learning into an example, then the learning has a better chance of sticking.
First thing to know is that the Reverse Mortgage for Purchase (or HECM For Purchase) is not your typical 80/20 loan. The required down payments will be much larger than 20%. I know that's not the best news, but keep reading. This loan requires no minimum credit score or debt to income! So if you have a senior homebuyer who just sold … (1 comments)
What You Want To Know & Need To Know About Reverse Mortgages -
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Let’s say you get lucky and win the lottery or get a big inheritance someday. Are you allowed to pay off the HECM reverse mortgage in full? Absolutely! There is no prepayment penalty or limitation on paying off your reverse mortgage balance in full at any time.
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