A reverse mortgage is a loan available to seniors over the age of 62 which allows them to convert equity in their home into cash. These loans were created to give seniors access to cash for expenses such as home improvements, unexpected medical costs, and in-home care by utilizing the accumulated equity in their homes. Click …
Avoid Selling At Market Lows with a Reverse Mortgage Read More »
Mortgage insurance premium (MIP) is paid to FHA in two ways. One is the upfront payment and the other is the annual MIP. The MIP insurance guarantees that the borrower will continue to receive their expected loan proceeds. It also ensures that the borrower, nor the borrower’s heirs will never owe more than the loan …
The Life Expectancy Set Aside, also known as LESA, is a guideline implemented by the government to require some reverse mortgage borrowers to set aside funds from the reverse mortgage to cover taxes and insurance for the life expectancy of the youngest borrower. The LESA can be an important aid for some borrowers who may have …
Life Expectancy Set Aside and Your Financial Assessment Read More »
There are several options available for paying down a reverse mortgage. Of course, the reverse mortgage must be paid off in full whenever home is no longer the borrower’s primary residence. Failure to stay current on taxes and insurance can also result in the borrower being required to pay off the reverse mortgage. There is …
Many small businesses are run and owned by seniors. Very often these small businesses are seasonal. With many seasonal businesses there are times when outside funds are needed to either cover unforeseen expenses or to buy inventory for the coming season. Often going to the bank to secure a loan takes not only time, but …
Of the many ways a borrower may receive their funds, there are advantages and disadvantages to receiving funds by either tenure or term. First, let’s look at receiving your money with tenure. If the borrower selects to receive the proceeds from the HECM loan with the tenure option, he or she will receive the monthly tenure payment …
For many people a reverse mortgage is a very useful tool. It can pay off current mortgages thus relieving the home owner of the monthly mortgage payment. Of course, the taxes and insurance must still be paid, and the property maintained. The reverse mortgage can also be used to tap the equity that has built up in …
It is important in many cases for children of a reverse mortgage borrower to have a clear understanding of how the “HECM” loan may or may not affect them. First and foremost, children and heirs will not owe more than the home value when sold. A misconception that many children have when the find out that their …
What Children Should Know About The Reverse Mortgage Read More »
