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Are Reverse Mortgage Loans Safe?

You’ve worked hard to pay the mortgage on your home. With a reverse mortgage loan you can receive the equity that you earned. A federally insured reverse mortgage loan can help you unlock that equity by increasing your monthly income. Rest easy knowing you’re protected because with a reverse mortgage loan you can:Access the equity in your home and stay in your home as long as you want. However, if you move, pass away or fail to pay property taxes or home owners insurance or otherwise fail to comply with the loan terms then you could be forced to sell your home or repay the loa...

August 1st, 2016 | Reverse Mortgage, Are Reverse Mortgage Loans Safe?

Introduction to Reverse Mortgage Loans

Many homeowners have found that a reverse mortgage loan is a great way for them to take advantage of the equity they have built up in their homes.A reverse mortgage loan is different than a traditional mortgage. With a traditional mortgage loan you make monthly mortgage payments, but with a reverse mortgage loan the lender pays you money through monthly installments, a one-time lump sum payment, a line of credit or a combination of a line of credit and monthly installments. The money that you receive is dependent on your age, the value of your home and the current interest rate.One of the grea...

August 1st, 2016 | Reverse Mortgage, Introduction to Reverse Mortgage Loans

3 Reverse Mortgage Loan Questions to Consider

What is a Reverse Mortgage Loan?A reverse mortgage loan is a loan designed to allow seniors to draw upon the equity in their homes. Seniors can select to receive the loan proceeds either by a lump sum payment, by monthly installments, as a line of credit or as a combination of a line of credit and monthly installments thus providing income even after retirement. The reason this type of mortgage is called a “reverse mortgage loan” is because the money goes directly to the home owner instead of into paying for the home.Eventually the money paid to the homeowner is repaid with interes...

August 1st, 2016 | Reverse Mortgage, 3 Reverse Mortgage Loan Questions to Consider

Steps to getting a Reverse Mortgage Loan

Below is the most common process for getting a reverse mortgage loan. Our professionals are eager to help you understand the reverse mortgage loan process. Please contact us with any questions. Step 1 - Research Reverse Mortgage Loans Speak with a mortgage professional about reverse mortgage loan options. Familiarize yourself with the various types of reverse mortgage loans and pick the one that is right for you. Step 2 - Meet with a HUD approved counselor In order to receive a reverse mortgage loan you must meet with an HUD approved councilor who will help you understand what it means...

August 1st, 2016 | Reverse Mortgage, Steps to getting a Reverse Mortgage Loan

What about repaying a Reverse Mortgage Loan?

The very nature of a reverse mortgage loan can be confusing. With a reverse mortgage loan, lenders pay you either in monthly installments, with one lump sum, a line of credit or as a combination of a line of credit and monthly installments. The following lists provide information regarding repayment of a reverse mortgage loan.A reverse mortgage loan comes due when under the following conditions:Death of the homeowner or last surviving eligible non-borrowing spouseUpon sale of the home by the homeownerIf the homeowner lives elsewhere for 12 consecutive months (i.e. assisted living home)Upon one...

August 1st, 2016 | Reverse Mortgage, What about repaying a Reverse Mortgage Loan?

What are the costs of getting a Reverse Mortgage Loan?

Much like a traditional mortgage, a reverse mortgage loan does have fees associated with securing it. The following is a list explaining common fees you may have to pay when getting your reverse mortgage loan.Origination Fee – The origination fee covers the lenders operating expenses associated with making the reverse mortgage loan. This can include things like overhead, marketing and title searches.A lender can charge a HECM origination fee up to $2,500 if your home is valued at less than $125,000. If your home is valued at more than $125,000 lenders can charge 2% of the first $200,000 ...

August 1st, 2016 | Reverse Mortgage, What are the costs of getting a Reverse Mortgage Loan?