What is the best place to get a reverse mortgage?
You want to speak to multiple HUD approved reverse mortgage lenders who have experience. We have an excellent resource below.
With a senior reverse mortgage, when and how are the fees expected to be paid to the provider.?
I am 64 ( retired ) and my wife is 59..We are both on the original mortgage which is paid off. To qualify she will be taken off the co-ownership of the house. We are doing this because we are broke except for my social security check so we couldnt pay any fees until the loan was in our hands. We live in Tx. and our house is in great shape and recently valued at about 125,000. Can someone please tell me what to expect?
Fees will be about $5,000 and will essentially be due when the loan comes due. (Make sure you get adequate life insurance so your wife won’t lose the house if you predecease her.)
How does a reverse mortgage work, and who issues them?
A “reverse” mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older. More information about reverse mortgages can be found here……
What is reverse mortgage & how is it different from mortgage?
A reverse mortgage is specifically designed for the needs of seniors and keeping them in their homes, whereas a traditional mortgage is not structured for that purpose.
With a traditional “forward” mortgage, all the money is borrowed up front and paid off over time with monthly payments. Over time the mortgage balance decreases as each monthly payment is made.
With a reverse mortgage the money is borrowed over time and is not paid off until the borrower either permanently leaves the house or passes it on to their estate. No payments are made until then. With a reverse mortgage the bank pays the borrower versus the borrower paying the bank. The balance increases over time with a reverse mortgage.
Reverse mortgages are not scams. Reverse mortgages are a good thing that helps many seniors stay in their homes versus prematurely going to nursing homes, etc. Reverse mortgages by the way are also almost entirely misunderstood and the same false information is repeated again and again.
All the borrowers must be 62 years old or older. Unlike traditional mortgages, credit is unimportant as no payments are being made. You also do not need income to qualify for a reverse mortgage as you do with a traditional mortgage, as no mortgage payments at all are being made. The reverse mortgage gives the borrower income versus using their income to make mortgage payments.
Reverse mortgages also allow for life estates and trusts to protect the equity in the home from Medicaid reimbursement, which is not allowed with traditional mortgages.
For more information go to: http://www.mtgmortgages.com/reverse_mortgages/reverse_mortgage_resources.htm
My father died 2 yrs ago, I recently found out that he may have a house with a reverse mortgage,now what?
I have found no paper work about the property and was recently contacted by the city who want the house condemned. I am only heir but have never filed any paper work as there was no other assets to my knowledge..where do I start? I don’t want to get involved if the house I owned by the bank/mortgage company.
You need to find out who does currently legally own the house, how much it is worth, what bank (if any) holds the mortgage, how much equity there is in the home, and where you would stand both financially and legally if you sell it. Even if the house itself is condemned, the property it sits on must be worth something — possibly quite a lot.
Since you don’t seem inclined to look into any of these matters yourself, I suggest you give whatever information you have to a real estate lawyer and let him/her research the situation for you. You’ll have to spend a little bit of money to do this, but you might wind up gaining thousands.
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