trinity reverse asked:


Reverse mortgage loans are only available for citizens who are 62 years or older. These loans differ from regular mortgage loans in that the homeowner does not pay monthly fees, but instead is paid by the lender. The lender pays in a lump sum, monthly, by periodic credit line, or a combination thereof directly to the homeowner, or “borrower”. Citizens who obtain a reverse mortgage are not in risk of loosing their house, and are able to do whatever they please with the money being received from the lender. The lender’s security is based upon the homeowner’s house itself. If the homeowner becomes deceased, is absent from the house for more than 6 to 12 months (or in the care of someone else such as family or a nurses at a retirement home at another location), or if the homeowner decides to sell his or her house, then the lender retains the proceeds of the housing sale. The proceeds from the housing sale are usually effective in paying off the reverse mortgage loans made to the previous homeowner. If the house sells for more money than the loan amount due, then the current borrower or heir(s) receives the difference. In cases where the house sells for less money than the loan amount due, then the insurance company usually pays the difference.

A Reverse Mortgage Lender will come in all types, and it can be difficult to not only make the decision to choose a reverse mortgage, but to also gain information and find an honest and decent reverse mortgage lender. The way to tell if a reverse mortgage lender is reliable is by finding ones who are connected with some kind of national organization such as Fannie Mae, Wells Fargo, FHA, and Financial Freedom Plan. In addition to being a part of a nationally reputable organization, it’s important to know the track record of a reverse mortgage lender. Often times a reverse mortgage lender’s record profile can be found on the company he or she works for, and there are also many sites that allow people who were previous clients of reverse mortgage lenders to give their feedback on that particular lender’s abilities.

Senior citizens should always heavily scrutinize a reverse mortgage lender, and not be afraid to compare lenders until he or she finds the right one. A good Reverse Mortgage Lender will be a person that helps in determining the right plans for you as a person. The lender should be courteous, respectful, and patient. In addition, the lender should always answer questions directly, as well as not ignore a single question. Another attribute that is a mark of a good reverse mortgage lender is one who takes time out of his or her personal lives in order to check up on you, see how you’re doing, check if you’re in good health, and make sure that you understand everything clearly.

For more information please visit our website on Reverse Mortgage



Reverse Mortgage Loans

MLS Reverse Mortgage asked:


Seniors today often live with a great deal of financial uncertainty. The retirement they imagined may not be consistent with the reality they face.

Incomes are flat or declining, living and medical expenses are higher than ever and few income boosting alternatives exist.  Even those who have heard about Reverse Mortgages may be unsure about how they work or what questions to ask. As they search for information, they often turn to their financial institution for guidance and information. By becoming familiar with the product, you can be an even more valuable resource to your clients providing them with income supplementing alternatives to drawing down assets.  

 

What is a Reverse Mortgage?

 

A Reverse Mortgage is a special type of loan that allows a homeowner to convert a portion of the equity in their home into cash they can access. The funds are not taxable to the homeowner and typically don’t interfere with eligibility for Social Security or Medicare benefits. (However, in the federal Supplemental Security Income program, beneficiaries must keep their liquid resources under certain limits.) The customer retains title to the home as well as right to any appreciation in home value when the loan terminates after it is paid off. The loan remains in force until the last titleholder dies, permanently leaves the home or sells the property; the borrower can’t be forced to sell or move by the lender. The loan may be repaid at any time. But unlike a traditional home equity loan or second mortgage, no monthly payments are required. Instead of putting further pressure on an already stretched budget, a Reverse Mortgage can free a senior homeowner of monthly debt obligations.

 

Most Reverse Mortgages today are Home Equity Conversion Mortgages (HECMs) and are FHA-insured and guaranteed. Because HECMs are subject to FHA lending limits, proprietary products have also been developed to help homeowners with properties in excess of the FHA lending limits.  

 

Who qualifies for a Reverse Mortgage?

 

All titleholders must be 62 or older and own a home with some equity. There are no income or credit qualifications. Existing mortgages or liens must be paid off, but are often paid with proceeds from the Reverse. The homeowner must also remain current on insurance and property taxes, but these can also be paid with proceeds from the Reverse.

 

How can a borrower use the money?

 

The funds can be used for any purpose from making ends meet to living retirement dreams.  The top reasons for funds used given typically by borrowers are:

 



Paying off debts, primarily mortgage and credit cards

Home repairs and remodeling

Living expenses

Travel

Health care or long-term care

Easing the financial burden on children

Education

Hobbies

Escalating property taxes



 

The amount available depends on the borrower’s age, the value of the home, interest rates and local FHA lending limits. Older borrowers can receive a higher percentage of their equity than younger borrowers. Funds can be received in a lump sum, a monthly payment or a line of credit.

 

What are the costs?

 

As with most any loan product, there are origination fees and closing costs, but they can be paid from the proceeds of the Reverse Mortgage. HECM loans also have a charge for the FHA’s Mortgage Insurance Premium (MIP). There are usually no out-of-pocket costs to the borrower.

 

What consumer protections are in place?

 

Reverse Mortgages are non-recourse consumer loans – the loan payoff can never exceed the value of the home. To get a Reverse Mortgage, the customer must attend a mandatory counseling session and review their financial situation with a trained, professional Reverse Mortgage counselor. Many of the counselors are certified by the AARP. The counselor ensures that they understand the transaction, the costs and their other alternatives.

 

If you have questions regarding Reverse Mortgages or how they may provide life-changing benefits to your clients, contact MLS Reverse Mortgage at 1-888-888-4834 or www.mlsreversemortgage.com.

 

Fixed Rate Reverse Mortgage

 

MLS Reverse Mortgage

 



Reverse Mortgage Wholesale

Carlos Scarpero asked:


A few years ago, if you had told someone that you had a reverse mortgage, you would have gotten a look that said, “Oh, I’m sorry you had to take one of those.” It was considered a product of the destitute. Today, you are more likely to have a conversation of curiosity. People will want to know what you think about the experience.

It’s true. Reverse mortgages have gone mainstream. They are enjoying unprecedented popularity, and not only among those who “need” the money. Seniors are now using reverse mortgages to help pay for the “wants” in their retirement years. As of 2007 more than 300,000 senior have used the FHA HECM program to tap the equity in their homes. Reverse mortgages are growing by leaps and bounds every year and are now the fastest growing segment of the mortgage industry. Indeed, as education about the real benefits of the reverse mortgage has spread, the informed senior as well as their advisors, have embraced this innovative product.

The reverse mortgage, a loan product that gives homeowners age 62 and over the ability to tap a portion of the equity in their primary residence without having to sell the property or take on a new mortgage payment, is here to stay. Although the reverse mortgage has existed for many years (the first one done in America was back in the 1960’s), the structure and safeguards of the product today have made it an attractive way for many seniors to finance those golden years.

In a nutshell, the reverse mortgage can provide equity to borrowers who qualify for as long as they live in the home. The borrower controls how the funds are taken- either in a lump sum, monthly allowance, line of credit, or any combination of the three. So for example, if a senior wants to eliminate some debt, receive a monthly check, and have some funds in reserve for future needs, the reverse mortgage can satisfy all of these. If there is a mortgage or home equity loan/line on the property, it must be paid off when the reverse mortgage is taken. For many, simply having this mortgage payment “go away” is enough to make a big difference in their monthly budget. If a senior is currently making a home equity loan payment of $300.00 each month, that $300.00 can now be put toward other monthly obligations or expenses such as prescription medications.

The amount of reverse mortgage funds available to a senior homeowner is based on several factors. First, the age of the youngest applicant is used. Of course, the minimum age is 62. In addition, the home value, as determined by an appraisal is taken into account. The location of the property (FHA maximum lending limits vary by county) is another factor Lastly, the current interest rates (depending on which product is selected) is the used in the calculation. These pieces of the puzzle will determine the amount of reverse mortgage proceeds the senior homeowner can take. If there is an existing mortgage or any type of lien, it must be paid in full at the time the reverse is taken. Other than that, the use of the funds is determined by the homeowner. And the funds are tax-free (it’s just equity) which makes the reverse mortgage the best option for many of today’s informed seniors.

Just what do seniors use reverse mortgage funds for? The answer to that question is as varied as the borrowers themselves. Some common uses include medical bills, prescription medication expenses and co-pays, real estate taxes, upkeep on the property, and supplementing current monthly income. With nearly 90% of seniors in our country relying on Social Security in some part to meet monthly expenses, proceeds from a reverse mortgage can meet a real need. These uses for reverse proceeds mentioned here represent “needs” that seniors have. But there are many who are using the reverse mortgage to actually enhance their quality of life during their retirement years.

More and more seniors are taking reverse mortgage proceeds and using these funds for travel, purchasing a motor home, gifts to children, funding grandchildrens’ college education, and charitable giving. Some are even putting this equity to use in the purchase of a vacation property or second home. Home improvement or modifying the home to meet the seniors’ needs is another use for reverse mortgage funds that has increases recently. Instead of moving out of the home and taking a one level apartment for instance, a certified aging in place specialist contractor (CAPS) can be called in and make recommendations on how the home can be modified to allow the senior to remain in the home in comfort.

Clearly the uses for reverse mortgage funds are as many and varied as the seniors themselves. As the program continues to grow in popularity, more and more ways to put that stored up equity to good use are sure to evolve. One thing is for certain, the reverse mortgage is here to stay and that is good news for both seniors and their families.



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