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If you have ever had a traditional “forward” mortgage, chances are, you’ve seen an amortization schedule that provides the details of your loan over time. This schedule is a detailed summary of all the payments that are owed toward principal and interest over the course of the loan, monthly. Because most mortgages are structured such that the borrower’s loan balance falls over time as interest and principal payments are made, an amortization schedule typically shows the balance ball each month until the end of the loan term. For a reverse... Read Full Article
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I am a young 69-year-old who has no debt and owns her own home in Florida. I found a need for a loan to address some financial growing pains. I received an advertisement for a reverse mortgage so I thought I would research your program as you were recommended by HUD. What I found horrified me. As an example, if a senior citizen borrows $66,000.00, the repayment would be around $35,000.00 in one year. That is approximately 50% fees. I think that is called "usury" which is against the... Read Full Article
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Is there a minimum income requirement for a reverse mortgage? Yes, HUD and other reverse mortgage programs do use an income qualification component when determining whether borrowers qualify for a reverse mortgage. You may ask why when there is no payment required but there really is a good reason. HUD does not want borrowers to get the loan if the loan will not allow them to live in the home comfortably, even after they receive it. HUD has had the benefit of analyzing hundreds of thousands of reverse... Read Full Article
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A Reverse Mortgage Calculator is a tool for consumers to use when shopping for a reverse mortgage. Many calculators exist on various sites, but borrowers should take care in which reverse mortgage calculator they ultimately choose to utilize. For example, there are calculators on various lender sites, and other sites with calculators that exist only to sell consumer information to lenders. These calculators require borrowers to complete a substantial amount of their personal information before the calculator will even give them the information the interested party is seeking (whether that... Read Full Article
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My mother died two weeks ago with a reverse mortgage and the mortgage insurance (MIP) was being charged to her. The reverse mortgage insurance pays off the mortgage at the time of her death. I called the bank a year ago and asked if the MIP would pay off the mortgage and they said yes, but it would be paid to them. So, if they are being paid off then why don’t I get the house? I have papers showing that they were charging my mother the MIP every... Read Full Article
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1. You do not want to leave your home—ever. If you are comfortable in your current home and have no plans or desire to move, a reverse mortgage can help you stay. With a federally insured reverse mortgage (HECM), you still retain ownership of your house and may stay there for as long as you live. Your reverse mortgage doesn't need to be repaid until you pass away or move out of the home. One feature of HECMs that is great for borrowers is that they are non-recourse. That... Read Full Article
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The reverse mortgage is a great product. But like all products, it is not a fit for every consumer. And while the product brings many advantages to aging homeowners, there can be downsides as well depending on the prospective borrower’s situation. Here is a look at six reverse mortgage disadvantages to weigh if you are considering a home equity conversion mortgage (HECM) loan. A reverse mortgage is not for everyone. A reverse mortgage is a loan for homeowners age 62 and over, which allows them to borrow against the... Read Full Article
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If you’ve made a decision that a reverse mortgage is right for you, the next step in your journey is to seek out a reverse mortgage lender to complete your loan. We hope this guide helps you in your search and offer some important tips in narrowing down the right reverse mortgage outfit for you. Our first advice is to do your homework and check prospective lenders references. First, Check to See what Past Customers Say About Them There are a lot of loan officers who were originating a... Read Full Article
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The real answer is “it depends” and that is a terrible answer but it is the most honest. When referring to the death of the borrower(s), the loan documents including the Deed of Trust and Note state that lender may require an immediate payment in full, due upon death once the property is not the principal residence of at least one surviving borrower. There is no 6-month period or 12-month period described in the documents given to heirs to pay the loan back but people routinely use these timeframes as... Read Full Article
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There’s no doubt that the decision to get a reverse mortgage can be a big one, especially depending on the borrower’s particular financial situation. Maybe you’ve decided that additional cash flow will help to stabilize your retirement finances, or maybe you’re looking to fund something like in-home care or a renovation to make your house more accessible. Whatever your potential reason is for getting a reverse mortgage, you likely won’t find an industry that is more upfront about what the potential benefits can be in tandem with possible downsides to... Read Full Article