It makes no sense to think 1 in 5
Borrowers get a reverse mortgage and choose to give up their home to foreclosure by not paying their taxes and insurance.
• Is
the borrower getting a reverse mortgage as a solution to financial difficulties that they may have, as reflected in their credit report and property charge payment history?
Not exact matches
Also that year, AARP conducts another national survey of
reverse mortgage borrowers which reveals
borrower's motivation for
getting RM to be has changed from «quality of life improvement» to «debt alleviation».
Fact: The bank does not take ownership of your home after
getting a
reverse mortgage;
reverse mortgage borrowers maintain their ownership and title of the home.
All Potential
Borrowers Must
Get Counseling Before Applying Federal law states that anyone who wishes to apply for a
reverse mortgage must receive counseling through an agency approved by the Department of Housing and Urban Development (HUD).
Although other
mortgage processes may be confusing and overwhelming for many people, you'll find that the
reverse mortgage process is smooth and painless due to the comprehensive attention and guidance that
borrowers get.
Reverse mortgage loan
borrowers have many different reasons for
getting the loan.
Under the proposed changes to the HECM program, the upfront cost of
getting a
reverse home
mortgage would be reduced if
borrowers applied for the HECM Saver.
The loan becomes due and payable as soon as the
borrower moves from the home or passes away, so if you have plans to move in the next few years, you may want to also wait on
getting the
reverse mortgage.
FHA loan guidelines require the
borrower to have already paid off the home or owe very little in order to
get an FHA
reverse mortgage.
What that means is that
borrowers who
get their
reverse mortgages now before rates go up, will
get even more money than those who will be cut back even further when the rates do rise under the new calculations.
The amount of money a person can
get from a
reverse mortgage depends on the age of the youngest
borrower, home value, and current interest rates.
Because of this, a question that potential
borrowers sometimes ask is, «Can I
get out of a
reverse mortgage?»
The
borrower gets money from a
reverse mortgage and does not have to make any monthly payments.
For example, a
borrower in California born in 1951 owning a $ 385,000 home that has no
mortgages may decide it's time to
get a
reverse mortgage.
This is a very important feature of the
reverse mortgage and I want to take a moment to explain just what non-recourse means and how that affects senior
borrowers who
get reverse mortgages and their heirs.
After you
get a
reverse mortgage on your primary residence, repayment is not due until the home is sold, the last
borrower passes away or permanently leaves the home *.
Reverse mortgages got their name because the cash flow is
reversed; the lender makes payments to the homeowner /
borrower, rather than the other way around.
• The bill prohibits lenders from requiring
borrowers to purchase insurance, annuities, or other similar financial products as a condition of
getting a
reverse mortgage.
Finally, would - be HECM
borrowers are required to
get a more in - depth education about their situation from an approved
reverse mortgage counselor who is independent from the private lender.
The most important thing most
borrowers want to know if how much money they can
get with a
reverse mortgage.
Reverse mortgages amortize negatively, which is a fancy way of saying that the cash the
borrower receives today
gets tacked onto the balance owed at the end, including interest, which accrues deferred.
Fact: The bank does not take ownership of your home after
getting a
reverse mortgage;
reverse mortgage borrowers maintain their ownership and title of the home.
The equity in a house then becomes increasingly important once a potential
borrower is weighing the decision of whether or not to
get a
reverse mortgage.
NRMLA explains to consumers that
borrowers never lose ownership of the home, that HECM closing costs are comparable to other FHA
mortgages, that
borrowers never owe more than the value of the home, that having a conventional
mortgage doesn't automatically disqualify them from
getting a
reverse mortgage, and that
reverse mortgages are not a loan of last resort.
What makes these loans potentially toxic for lenders and the government also makes them attractive for
borrowers: a homeowner who is at least 62 years old
gets a lump sum of money, a line of credit, or monthly income from their
reverse mortgage, and potentially does not have to repay the loan for decades.
Also that year, AARP conducts its first national survey of
reverse mortgage borrowers which reveal that the primary motivation for
getting a
reverse mortgage for
borrowers is to plan for emergencies and to improve the quality of life.