Tag Archives: Reverse

Equity Key, the Jumbo Reverse Mortgage Alternative

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We talk to many senior homeowners who desire a reverse mortgage and due to one circumstance or another, simply can’t take advantage of the program. For example, on one of the popular jumbo reverse mortgage programs today, a single 65 year old borrower would receive a principal limit of $631,800.00 and a couple with both borrowers aged 65 would receive a principal limit of $594,000.00.


The reason for the difference is because reverse mortgages operate much the same as insurance products which utilize actuarial tables, the older you are the more money you can receive. Statistics show that married borrowers live longer so the couple the same age as the single borrower actually receives less money.


But for borrowers with existing financing to retire, even the $631,800 may not be adequate for their needs. What do you do if you are a senior borrower or couple in need of funds and you still owe $1,000,000 on your $2,000,000 home?


There is another option for senior homeowners out there which is not considered a loan but rather a real estate transaction known as the Equity Key Product. The Equity Key is unique in a number of ways. Homeowners are actually agreeing to give up a percentage of future equity for a cash settlement today. For example, using our borrowers above, the single borrower can arrange for 10-15% of the value of their property for 50% of their future equity. Which means that for a cash payment of $300,000 today (if the borrower qualified for the maximum), the borrower or the borrower’s heirs would have to pay half of the equity gained on the property when it was sold.


If the borrower kept the property for 10 years and the value grew by 5% per year, the value would be approximately $3,000,000 and then the borrower or the borrower’s heirs would have to pay half of this amount to Equity Key, or $500,000.


This may sound like a lot of money to repay but think about this principal and interest alone at an average of 6.5% on a $300,000 loan would be over $573,000 without any fees that a typical mortgage charges that would have to be paid back instead of the $500,000 that the Equity Key will receive. And the Equity Key does not charge large origination and other fees like a typical mortgage.


Another good feature is that Equity Key also does not require that existing liens be paid off when you receive their funds. If more than one borrower is being considered then they can opt for between 20-30% (again depending on qualification) of the value of the home for 100% of all future appreciation.


The main feature is that the money can be used for any purpose and many borrowers utilize a portion of the funds to secure life insurance policies to not only lock in their current equity, but also to replace the equity that they pay to Equity Key upon their passing with a non-taxable life insurance payment to their surviving spouse or heirs. Unlike reverse mortgages, Equity Key can be utilized with commercial properties, land, multiple properties, non-owner occupied homes and just about any real estate.


As stated earlier, it’s not considered a loan but rather a real estate transaction. It also requires the borrower(s) to obtain a life insurance policy (which Equity Key pays for) so there is an additional requirement under this program that the borrowers must be insurable. There is more to the program that cannot all be explained here, but it’s got some really great features.


Just like reverse mortgages, this program is not for everyone. But for those who do not want to pay the up-front costs associated with reverse mortgages, for those who are concerned that there may be too much interest accrued on a reverse mortgage, for those who have a mortgage and are short with the reverse mortgage proceeds of retiring that debt, or for those who have a piece of real estate or occupancy type for which a typical reverse mortgage will not work (or need to use multiple properties to make the deal work), Equity Key may be the ideal reverse mortgage alternative.


Equity Key Program Features:


* Eligible Properties: Primary, Investment, Second Homes & Commercial Real Estate

* Maximum allowable 1st TD Lien 80% of property Value (LTV)

* Will not accept negative amortizing 1st lien

* Combine Multiple Properties (cross collateralize)

* Money received is NOT a debt and does not effect current equity positions

* No Closing Costs ($300 Refundable Application Fee)

* Minimum Property Value $500,000

* Minimum Age Requirements: 65-85Yrs

Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762
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Live your Dreams With Reverse Mortgages

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We human beings are one such species who work hard for his or her entire life to become somebody. Born out of our mother’s womb, we are given ample protection, showered care and looked after by our parents. With the passage of time as we grow, our requirements keep on increasing and then we realize that our parents have bestowed upon us whatever they had. Just the way we run after fulfilling our dreams, our parents and the various aged people also at one point, must have rushed to fulfill their dreams and in this chase, they barely could have saved anything that they can treasure for their lifetime. However, with reverse mortgages becoming a major advantage, today senior citizens of America can get themselves a second chance to do the things that they missed out in trying to live up to their responsibilities of raising their children and looking after their families.

Reverse mortgages are a kind of loan that is made available to the senior citizens of the United States of America, who are sixty-two years of age or above. Reverse mortgages are generally used to release the house equity in the property as one lump sum or multiple payments. The homeowner’s obligation to repay the loan is deferred until the owner dies, the house is sold, or the owner leaves the house. In a traditional mortgage process, the house owner needs to make a monthly payment to the lender and in addition, after each payment is made the equity increases within his or her chattel. Moreover, after the end of the term, i.e. the number of years the loan has been taken for, the mortgage is paid in full and the property is released from the lender. However, in reverse mortgages, the house owner does not need to make any payment and all interest is finally added to the lien on the property. If the owner receives monthly payments, then the debt on the property increases each month.

There are several criterions that need to be fulfilled to qualify for reverse mortgages in the United States. The primary factor is that the borrower needs to be of at least sixty-two years of age. There is no need of any minimum income. However, it includes the requirements of certain factors, and therefore, the borrower should make sure that he or she qualifies according to all the terms to get the loan before they devote any significant time or money into the entire process. Reverse mortgages made its way in the United States some twenty years back, but however, it gained popularity around three years back. Almost every senior citizen in the US is using today, reverse mortgages.

Reverse mortgages in the United States has indeed made things much easier for the senior citizens. In fact, it can be said that reverse mortgages have given them a second chance to fulfill the dreams that they dreamt of but never got a chance to live them. Contrary to the saying “life begins at forty” reverse mortgages has made it that life begins at sixty-two.

Antonio Redford is a legal expert. He gives advice to clients who are looking for expert counsel on reverse mortgage. For more queries about reverse mortgages, American reverse mortgage, California reverse mortgage and reverse mortgage Canada visit www.reverse-mortgage-seniors.com

Aarp Reverse Mortgage Counseling – What you Can Expect

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Reverse mortgages have really started to become popular among senior homeowners today. They are helping to supplement the incomes of retirees all over and the trend is only going to continue to grow in the coming years.

To help protect people in applying for a reverse mortgage, the government requires every applicant to take a credit counseling class before any loan can be processed. One of the best ways to get this required counseling is through AARP. Here’s a look at what you can expect with AARP reverse mortgage counseling.

With nearly 80% of all seniors being a member of AARP, there is little wonder why AARP reverse mortgage counseling is by far and away the most popular. It’s also offered free of charge to any current member.

You may be thinking that reverse mortgage credit counseling is just a waste of time and more government red tape to go through, but the truth is that this type of counseling can not only help you understand more about reverse mortgages, but also help you make the right decision in moving forward.

AARP will go through all the details about a reverse mortgage and how the loan process works. They will go over all of your options that pertain to your individual situation so you know if you’re making the best choice. You may even discover through this process that a reverse mortgage loan isn’t the best option for you.

The counselor will discuss all the benefit options with you, as well as how this type of loan may affect other benefits you are receiving currently.

You’ll have a better understanding of taxes and your estate through AARP reverse mortgage counseling and how it can affect your heirs in the future.

AARP is not your only option when it comes to reverse mortgage counseling. There are many other services available, but with that said, you won’t go wrong with AARP for this type of loan counseling. When finished you will know you are making the right decision in applying for a reverse mortgage.

By the way, you can find out more about AARP Reverse Mortgage Counseling as well as much more information on everything to do with reverse mortgages at http://www.ReverseMortgagesA-Z.com

Reverse Mortgages Could Supply Liquid Cash in Time of Need

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We all would ideally like to keep aside a substantial fund to see us through bad days. However life cannot be predicted and a sudden circumstance may arise where the fund proves to be insufficient to meet our needs. Till the time we are employed and earning our own money, we need not worry about the cash inflow. Life after retirement is the time when we need to be well prepared to meet sudden liquidity requirements which may arise. The sudden stop to the constant inflow of cash already causes a strain on even our regular household budget. In such a scenario an emergency could turn our world upside down. Reverse mortgages are an ideal way for retired citizens to deal with such a circumstance.

Reverse mortgages are a convenient process of getting a loan in lieu of property owned by the borrower. The main difference and convenience of getting reverse mortgages is that the property owner gets loan against his house but he can continue to retain the ownership of the house and even reside in it till the time of his death. In case the borrower decides to sell off the property, he is entitled to do so but needs to repay the mortgage loan in full and final settlement. The loan amount is also remains the responsibility only of the borrower and does not get transferred to his or her heirs. The arrangement for receiving the loan can also be decided by the borrower, as he can decide if he wants to take the entire lump sum at one go or in monthly installments.

Taking reverse mortgages on one’s property ensures a regular cash flow into the household even after the regular source of income has stopped. Any person above the age of sixty two, who owns a property can easily apply for reverse mortgage and enjoy a financial support for lending agencies. This enables the loan taker to lead an independent life without having to ask for financial help from any relative or friend, and for a retired person this is a big boon indeed. Also a property that has been put up for reverse mortgage can be mortgaged even further provided the reverse mortgage was the first kind of loan taken on that property. The continued ownership of the property and facility to continue using the property for residential purposes is a major attraction of applying for reverse mortgages.

Everyone is entitled to a life of dignity and a retired person feels the need for such respect even more than others. Owning a house truly becomes an asset for such a person as in times of need he can actually use this asset in the most beneficial manner. He can ensure that he maintains his regular lifestyle that was there during his employed days, thanks to reverse mortgage facility. This form of providing senior citizens of America has truly helped to establish a society of senior citizens that encourages independence and self sufficiency among its members.

Antonio Redford is a legal expert. He gives advice to clients who are looking for expert counsel on reverse mortgage. For more queries about Reverse mortgages, American reverse mortgage, www.reverse-mortgage-seniors.com

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Fha Reverse Mortgage Lender

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The Federal Housing Administration, which is also known more commonly as the FHA, is a group that has been aiding people in getting a home since 1934. The FHA’s job is to administer the government home loan insurance program, which allows for homebuyers to qualify for a home loan, is an organization that lenders must affiliate with. In addition to offering mortgage loan insurance, FHA also offers insurance for what is called a Reverse Mortgage Loan. Reverse mortgages are only available to senior citizens that are 62 years of age or older.


Reverse mortgages are mortgage loans that a person who already owns a home can take out in order to refinance that home. In addition, reverse mortgage loans can also be taken out for senior citizens that are looking for a new home to purchase, but do not want to pay monthly mortgage bills. The way a reverse mortgage works is very different from the way a traditional mortgage works; reverse mortgages do not require the borrowers (homeowners) to pay back the loan. In fact, reverse mortgage lenders actually pay the borrowers (homeowners) instead. Lenders pay in a variety ways, the most common of which are One Lump Sums, monthly payments, periodic lines of credit, or a combination thereof. The money that the homeowner receives from the lender is un-taxed, and the recipient of the money can do whatever he or she wants with funds. This can help homeowners who already have a home and have fully paid off their mortgage, or are almost done paying off their mortgage, to receive extra money for retirement without having to work, and it’s tax-free. Also, this can help potential homeowners who are senior citizens by getting rid of the need to pay off monthly mortgage bills, and allows the potential new homeowner to receive money instead.


However, even though reverse mortgages loans allow borrowers to receive money, it is still considered a loan. The homeowner is not in risk of loosing his or her house, and the homeowner does not need to pay back the money later. Instead, the money is paid back through the proceeds generated from the house sale. The house can only be sold if the homeowner wishes to, if the homeowner becomes deceased, or if the homeowner is absent for more than 12 months. When the house is sold, the FHA Reverse Mortgage Lender is paid back. If the house sales for more money than the FHA Reverse Mortgage Lender is owed, then the existing homeowner or heir(s) receive the difference.


Yet, what happens in the event that the money sells for less than the reverse mortgage loan due? This can worry many people, because they may suspect that either the existing homeowner or heir(s) will have to pay back the difference to the lender. Thankfully, because of the FHA, the FHA Reverse Mortgage Lender has no worries about whether or not the home will sell lower than the amount due, and neither does the homeowner or the heir(s). The FHA removes the risk from the lender by insuring that FHA will pay back the difference to the lender, therefore everyone is safe.


For more information please visit our website on Reverse Mortgage

Trinity Reverse is the leading Reverse Mortgage Company serving California since 1984.

Get Life Long Peace Though a Houston Reverse Mortgage

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Certain things in our life happen without any warning; and often we find that we did not have the time to be prepared to face that. Now if you are a senior citizen above 62 years of age or are approaching that age, you will surely know that you will retire from work soon. Retirement is going to happen sooner or later, so take all steps to ensure that you lead your retired life smoothly without any hassles. There are several financial schemes that are available these days for retired people to take care of their financial needs once they retire from service. When they retire from work, no one likes to ask for money from either their family or friends, but the truth of the matter is that one does need money. So when you have alternatives like taking a reverse mortgage loan, you do not need to seek help from anyone for this. A reverse mortgage is a loan that is given against the house that you own.

Huston reverse mortgage is a financial plan that any senior citizen can take up after retirement to safeguard his financial interests. There are several reverse mortgage dealers operating across all the cities in America, so no matter in which city you are residing, you can find out a broker to help you. To be eligible to get a reverse mortgage loan in America a person must be at least 62 years or above, there is no minimum income or credit limit for the loan applicant and the person must own a house. After taking a Huston reverse mortgage loan, the person must make sure that he pays off all his existing mortgages from the money that he gets out of the reverse mortgage deal. The money can in fact be used for taking care of any needs which may rise at that time.

Before deciding to work with a dealer for getting a reverse mortgage loan, make sure that you are working with a competent broker. For this you will have to spare some time and find out the success rate of the broker that you are dealing with. If you are not properly informed about the whole aspect of a reverse mortgage loan, things can get difficult for you. So you can consult an accountant about the whole thing. Also you can approach AARP i.e. the American Association for Retired Person for any kind of queries that you may have. This association was set up with the specific aim of helping out senior citizens lead a trouble free life.

Our spending and consuming habits remain almost the same, but what changes after retirement i.e. regular money flow, has a very big impact on our life. So that is why we need to ensure that we have the money to take of our needs as well as the needs of our family after retirement. As long as you continue staying in your house, you will not have to repay the loan. However, if at anytime you decide to sell off your house or not continue to stay in your house, you will have to pay the loan amount to the dealer.

Antonio Redford is a legal expert. He gives advice to clients who are looking for expert counsel on reverse mortgage. For more queries about Reverse mortgages,Houston-Reverse-Mortgage,American reverse mortgage, Houston-Reverse-Mortgage

visit on www.reverse-mortgage-seniors.com

California Reverse Mortgage Lender: the Best Companion for Senior Citizens

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Money is the basic requirement for everyone. Being a senior citizen never means that he/she does not need money. This money may be needed for many purposes such as health treatment, house renovation or any other personal need. If you are a senior citizen and want a large amount of money instantly then California reverse mortgage lender is the ultimate destination for you. Senior citizens who reside in California or in any nearby place can decide on reverse mortgage for best and reliable support.

There are some basic requirements that need to be fulfilled for getting mortgage from California reverse mortgage lender. First of all the borrower has to be a senior citizen and owner of a high valued residential asset. The compulsion of the mortgagor to repay the amount is delayed till the mortgagor is alive. In case the house is sold or person who is residing in it moves to somewhere else, then the mortgagor will have to repay the mortgage. The best thing about California reverse mortgage lender is that the borrower will not have to pay any interest on the loan amount, as it will be deducted from the realized cost of house. Normally the mortgage is repaid within the limit of 30 years whereas in case of reverse mortgage a monthly amount will be paid to mortgagor. Actually this is the amount which is payable to property owner by California reverse mortgage lender on cost increment of house.

In such a phase of life when you cannot ask anyone to lend money as no one would like to take risk for his money, as you cannot guarantee to return it. California reverse mortgage lender assures senior citizens for instant finance with less paper work. It understands the intensity of your need and thus it does not delay in lending you the money. Mortgaging from California reverse mortgage lender is beneficial from every aspect. Its terms and conditions are crystal clear so that any mortgagor may not feel cheated at any point of time. If you are planning to go for reverse mortgage then do a detailed market research before making any decision. Compare plans and offers of all reverse mortgage lenders. Always choose a plan according to the requirement for instance you need a loan for home repairing then the best option will be the single purpose loan of California reverse mortgage lender. Read all terms and conditions carefully so that you may avoid frauds.

California reverse mortgage lender is the best option a senior citizen can ever find. California reverse mortgage lender enables them to convert their asset in guarantee for loan and equity. This equity is totally a tax-free income, which means you will not have to pay any tax on that income from house. It is a perfect idea to take loan from California reverse mortgage lender as it makes monthly payment to you instead of receiving payment to from you. Isn’t it a double benefit plan that continues your source of income even when you are a retired person? Therefore don’t be confused and make a sensible decision that will pay you equity on your loan.

Antonio Redford is a legal expert. He gives advice to clients who are looking for expert counsel on reverse mortgages. For more queries about reverse mortgages loan, American reverse mortgage, california reverse mortgages lender and reverse mortgage Canada visit www.reverse-mortgage-seniors.com

What is a Reverse Mortgage?

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Reverse mortgages are government insured home loans specifically designed for senior homeowners. This type of loan allows a homeowner to payoff their existing mortgage along with a combination of the following: establish a credit line, receive monthly checks, or withdraw cash. The amount of cash available depends on many factors, which we will discuss shortly.

If you choose to get cash with your reverse mortgage loan, you can choose from the following methods:

Tenure – equal, monthly payments.

Modified Tenure – line of credit combined with monthly payments.

Term – equal, monthly payments for a fixed period.

Modified Term – line of credit combined with monthly payments for a fixed period.

Line of Credit – payments or installments at the borrower’s discretion (much like a standard credit line – use the money only when you choose to).

Perhaps the most worthwhile benefit of a reverse mortgage is that the borrower will not be required to make any mortgage payments for the duration of their stay. That’s right: zero payments for the rest of their life or until they move from the home. As you can imagine, zero house payments could drastically alter a person’s lifestyle in a positive manner and could do so almost overnight.

In regards to qualifying for a reverse mortgage, there is yet another benefit that is often over-looked: you do not need to verify your income since the loan is based on your home’s value. There are no payments to be made, remember? Essentially, you do not need any income nor do you need an outstanding credit report.

When reverse mortgages were first introduced, they allowed the lender to have a stake in the future value of the home. In essence, the lender would profit from your equity even if it extended beyond the original loan amount. Fortunately for seniors, times have changed for the better: regardless if your home goes up or down in value, you will never owe more than the loan amount or your home’s current value, whichever is lower.

Another question often asked is: can I outlive my loan? You can never outlive a reverse mortgage loan. So long as you are alive and living on the property, you will never have a mortgage payment for your reverse mortgage. Nor can a lender take your home away from you. As long as you live in your home, pay your taxes and insurance, you can live indefinitely in your home without making a single payment.

The amount of money that can be borrowed with a reverse mortgage is dependent upon many factors, including but not limited to: the age of the borrower, the amount of money currently owed on the home, the interest rate, the value of your home, and FHA’s lending limits for your area. Typically, the older you are and the less money you owe on your home, the more you can borrow. However, every situation is unique. To get an accurate, approved loan amount, you should speak with an approved reverse mortgage lender or broker in your local area. Do not be intimidated about contacting a loan broker! HUD requires that you speak with an approved, HUD counselor prior to any loan funding to ensure that you are fully aware of how a reverse mortgage works. You may call 1-800-569-4287 to acquire a list of FHA approved lenders for your particular area. They can also give you names and phone numbers for HUD-approved counseling agencies.

Reverse mortgages are truly designed to help seniors live a higher quality life. If you or someone you know is 62 years of age or older, you should take the time to find out about a reverse mortgage.

Christian Rios is an x-loan officer for a major, US direct lender. He now specializes in educating home owners about available home loans. You can learn more about reverse mortgages here: riverside California reverse mortgage. To learn more about traditional home refinancing, please visit: california refinance home equity loan California mortgage. And if you’re more interested in learning about a HELOC, please visit: heloc mortgages.

Six Benefits Of Reverse Mortgages

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Are you over 62 years, looking for a little extra money and own most if not all of your home? If the answer is yes, then a reverse mortgage may be exactly what you’re looking for. Here are some of the benefits a reverse mortgage can offer you:


#1: Reverse mortgages pay you. Instead of making payments to a lender, the lender makes payments to you. Of course as payments are made, your equity in your home decreases. It is, however, a great option if you don’t plan on leaving your home to family members after you’re gone.


#2: You can use the money you receive any way you choose. For example, it can be used to put your children or grandchildren through college, to buy groceries, to pay for healthcare, to buy a new car or to go on that dream vacation you’ve been putting off for 30 years.


#3: You can receive your money in a variety of ways:


* Lump sum

* Fixed monthly payments either for a set term or for as long as you live in the home

* A line of credit

* A combination of the above.


#4: A reverse mortgage isn’t limited to single family homes. In fact, unless you own a manufactured home built before 1976 or an apartment in cooperative housing, your home likely qualifies.


#5: Your benefits, Social Security or Medicare are not affected by a reverse mortgage. However, if you are on Medicaid, any reverse mortgage proceeds must be used immediately to continue to qualify for Medicaid.


#6: No more monthly payments. You can use a reverse mortgage to pay off any existing debts. And your reverse mortgage loan is repaid when you no longer live in your home as a principal residence. The amount owed can never exceed the value of your home. Even better, if your home is sold and the proceeds exceed the amount you owe on your reverse mortgage, you or your estate receives the profits.


While a reverse mortgage is generally an excellent idea for many, there are a few drawbacks. Service fees and closing costs can make a reverse mortgage an expensive option, particularly if you’re planning on selling the home in a few years. If you’re not planning on living in the house a long time you may want to consider a home equity loan, because they’re much less expensive and you can still take the dream vacation you’re looking for.

Eddie Lamb owns LiveMortgageFree.com a website devoted to helping homeowners, first time buyers or tenants. You’ll get your own exclusive access to the program and bonuses that will get you on the road to living Mortgage Free and will change the way you view money forever. For more information visit: LiveMortgageFree

What Is A Reverse Mortgage Calculator?

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If you are considering a reverse mortgage, at some point in time you will be using a reverse mortgage calculator. Before we get into the reverse mortgage calculator, an over view of a reverse mortgage is necessary.


Reverse mortgages have actually been around for a while, but have grown in popularity in recent years. This is mostly due to the cost of retirement increasing. This type of financing is available to seniors 62 years of age or older. Simply put, a reverse mortgage draws the equity out of your home and pays it to you in a monthly payment, lump sum or home equity line of credit. The big difference in this type of mortgage and a normal home equity loan is the money is not paid back until the home is sold or vacated by the owner.


The big advantage to a reverse mortgage is the additional income it gives the home’s owner while still allowing that person to live in the home. This is the reason that most people enter into this type of senior financing. There is a lot to think about when considering a reverse mortgage. These mortgages are complicated. For that reason, credit counseling is required so as to ensure that the applicant completely understands all the terms of the loan.


The reverse mortgage calculator, like any other calculator, will compute the estimated amount of money you may be eligible for if you choose to receive financing with this type of home equity loan. The information that you may be asked to enter are your birth date, your spouse’s birth date, the estimated value of your home, your zip code and money owed on your home. These pieces of information will allow the lender to calculate the equity that you have in your home.


Reverse mortgages are quickly becoming more competitive as more lenders are offering this type of senior financing. This is not something that should be entered into if there are other financing alternatives available, but it will allow you to stay in your home and receive the necessary money to cover your necessities. This is not the type of loan that you want to use to take a vacation. You will be paying some pretty stiff fees for this loan, but they have come down in recent years.


If you’re considering a reverse mortgage, you really need to do your homework. Talk to several lenders and make sure that you completely understand the terms of this unique type of financing designed to provide additional income for senior citizens.

A reverse mortgage calculator will help you find out the amount of money that you could receive through a reverse mortgage. This type of financing can keep you in your home and provide with an income at the same time.