When the homeowner sells the home, it is no longer the primary residence or when  the last surviving borrower dies, the loan must be repaid. With a HECM program, the  borrower can live in a medical facility or nursing home for up to 12 months before requiring that the loan be repaid. This provides a margin of comfort and safety for surviving children or other care givers.

As with any mortgage program directed to seniors, there are things to be aware of.

• Since interest is charged each month and added to the outstanding loan balance, the amount you owe on a reverse mortgage will grow over time.
• Most reverse mortgages have variable rates that are tied to a financial index and change on a monthly or annual basis. Fixed rate reverse mortgages are available but do not provide as much cash access as the variable rate loans.

Reverse Mortgage

Reverse Mortgages at AARP – Because reverse mortgages are meant for older Americans, i…   Read more…

The West Above » Blog Archive » Information about reverse mortgage.

Are you looking for a reverse mortgage information, then the best site for it is the rever…   Read more…

• A reverse mortgage uses up all or a significant portion of your home equity. This will result in less for your heirs or your possible future needs. Most reverse mortgages contain a “nonrecourse” clause which states that you or your heirs will not be responsible for paying back more than the value of the home when the loan is repaid.
• You retain title to your home and will continue to be responsible for property taxes and the normal upkeep expenses related to your home such as  insurance, utilities, and maintenance. Your loan may become due and payable if you default on your property taxes. Some taxing districts provide for a senior waiver to defer property taxes until your home is sold. Check with you area taxing authority to see if this is available in your area.
• Since you are not paying the interest on a reverse mortgage but simply letting it accrue, it is not deductible on your income tax return. When the loan is paid off or your home is sold it will be deductible.

Reverse Mortgage Loan Blog » Reverse Mortgages an Option for Some

“It seems like we’re getting a lot more calls about the reverse mortgage because people h…   Read more…

Before taking out a reverse mortgage to help with your retirement income, you should consult with your children and/or an advisor other than the mortgage company to make certain this is the right thing for you to do.

Technorati Tags: increase retirement cash flow, Retirement Income, Reverse Mortgage, secure retirement

Reverse Mortgage Loan Features And Cautions is from Reverse Mortgages Pros And Cons

Like many seniors, we looked at an equity line of credit to fill an increasing income shortfall in our retirement years. We quickly decided that this was not the way to go because the interest rapidly depletes what is already a smaller monthly income. Sort of self-defeating. You may find yourself with no equity at all left in your home.

Reverse mortgages are one of the safest, most heavily government regulated sources of extra income for your retirement years. And because of the regulation, the fees and closing costs are higher than a standard mortgage.

The <a href=”http://www.hud.gov/” target=”_blank”>US Department of Housing and Urban Development</a> (HUD) sets the maximum fee percentage that lenders may charge under this program. So guess what? That’s right. Most lenders charge the maximum permitted and then tell you that it is a Federally regulated fee over which they have no control.

We found this to be true with the first couple of lenders we talked to. One was the bank we had been using for years and which held our current mortgage. Another one was a local lender who has advertised heavily in the senior market and had many glowing testimonials.

Both of these lenders assessed the maximum fees permitted by the <a href=”www.fha.gov/” target=”_blank”>FHA</a>.

We found the internet a wonderful tool in our search for the best reverse mortgage and lender for our needs. Don’t be afraid to deal with someone online. They may be able to save you thousands in fees and increase your monthly income significantly.

Our search led us to a lender who was courteous, answered all of our questions, closed the loan quickly and saved us thousands of dollars in fees. It was a painless transaction even though the broker was located in Chicago and we live in the Northwest. In retirement you need all of the money you have worked for. Don’t just give it away in loan fees and don’t be afraid of a long-distance relationship with the lender.

Technorati Tags: Closing Costs, Current Mortgage, Department Of Housing And Urban Development, Equity Line Of Credit, Extra Income, Fha, Hud, Lenders, Retirement Income, Reverse Mortgages, Seniors, Standard Mortgage

Reverse Mortgages For Retirement Income is from Reverse Mortgages Pros And Cons