refi-mtg

Save Thousands of Dollars on Your Mortgage!

2006-08-27T05:49:00.000-07:00

More Reverse Mortgage Information and Resources

2006-08-27T03:41:00.000-07:00

Below is a great article on Avoiding Reverse Mortgage Scams by Charles Kirkendall

Reverse mortgages are gaining in popularity as more senior's start looking for ways to supplement their retirement incomes. And as the interest in reverse mortgages increase, so are the cases of reverse mortgage fraud and scams. Many seniors are finding that they have lost thousands dollars of their hard earned equity to these reverse mortgages scams. Since reverse mortgages typically involve our largest asset (your home), this type of fraud can have a serious negative impact on your retirement. The following reverse mortgage fraud information will help you avoid becoming a victim of a reverse mortgage scam.

Reverse Mortgage Scams

The are several types of reverse mortgage scams that can end up costing you thousands and even tens of thousands of dollars in equity in your home if you become a victim.

Charging for free information on reverse mortgages

Several estate planning companies have been charging thousands of dollars for information provided free from HUD. Typically these companies charge for this information as part of an estate planning program. Seniors that sign up for these programs are unaware that these firms are collecting thousands of dollars by charging a fee of 6 to 10 percent of the total amount borrowed. These fees costs the victims $6,000 to $10,000 on a $100,000 reverse mortgage. HUD has recently issued a directive to lenders that issued reverse mortgages insured by the Federal Housing Administration (FHA) to stop doing business with these companies.

Pushing reverse mortgages as a way to pay for purchases

Some companies that sell large ticket items or services, like annuities or insurance products, may try to suggest using a reverse mortgage as a way fund these purchases. When the additional cost of the reverse mortgage is factored into the purchase, it ends up costing the homeowner much more than the benefit provided by the product or service.

Unethical reverse mortgage terms

Some lenders slip in excessive fees and terms into their contracts. These terms can have a serious effect a Seniors equity. In some cases, lenders have used shared equity or shared appreciation terms, which gives the lender the right to collect a portion of the appreciation when the home is sold or refinanced. The cost of these type provisions can run into the tens of thousands as the home appreciates. These rising cost provisions eat up equity without providing any additional benefit to the homeowner.

Protecting yourself from reverse mortgage scams

If you are looking into reverse mortgages, there are several things that you can do to protect yourself from falling victim to these types of scams.

1. Speak with a HUD approved reverse mortgage counselor. The counselor will help you understand reverse mortgages and help you evaluate your situation.

2. Obtain several offers from different reverse mortgage lenders in order to compare different options. The rule of thumb is to get at least three
separate offers so that you have a good comparison of the terms offered.

3. Make sure you understand all the terms and conditions within the reverse mortgage contracts. Your reverse mortgage counselor can guide you through
the contracts.

4. You generally have three business days after signing the loan document to cancel it for any reason.

If you suspect that a company is operating in violation of the law, let your reverse mortgage counselor know and then file a complaint with your State Attorney General's office or banking regulatory agency and the Federal Trade Commission (FTC) at www.ftc.gov.

About the Author:

Resource Box: Charles Kirkendall writes on a variety of senior financial issues. For more information visit reverse mortgages or the reverse mortgage blog.

Some Reverse Mortgage Links Are:

http://www.reverse-mortgage-refinancing.com/

New Reverse Mortgage Resources

2006-08-24T20:51:00.000-07:00

Reverse Mortgages have soared in popularity in recent years due to the fact that many seniors need to supplement their retirement income to match the rising cost of commodities - oil being one example.

The second factor that has contributed to the increase in reverse mortgage refinancings is the rise in home equity as a result of the recent surge in real estate prices across the country.

Two resources that can help you understand the advantages and disadvantages of reverse mortgages can be found at Reverse Mortgage Resources and Reverse Mortgages Explained.

This site has a lot of information that can help you make an informed decision before you take the plunge.

2006-03-31T01:45:00.000-08:00

Interests Rates Rise Again

2006-03-31T01:21:00.000-08:00

The fed, as predicted, raised intererst rates again. The impact on mortgage rates will be felt in the marketplace in a few months, as there is normally a 90 day lag.

Most affected will be those who have adjustable rate mortgages. Now might be a good time to think about converting to a fixed rate mortgage, as there is no sign that interest rates are going to abate in the near future. Although there are some analysts who predict that interest rate increases will slow down, that's a gamble you may not want to take.

Reverse Mortgage Update

2006-03-28T12:50:00.000-08:00

A new update for these resources for reverse mortgage facts, information and strategies.

Reverse Mortgage Portal
Stop Foreclosure Mortgage Help
Massachusetts Reverse Mortgage Facts
Jumbo Reverse Mortgage Resources
1031 Reverse Mortgage Information
Benefits Of A Reverse Mortgage
Reverse Annuity Mortgages

More Reverse Mortgage News

2006-03-27T20:43:00.000-08:00

Certain qualification requirements must be meet in order for a reverse mortgage refinancing loan to take place. Check with online Refinance Advisors to determine if you meet the easy qualifying requirements to get approved for this type of loan. There are no credit score requirements to qualify.

*Anyone seeking a reverse mortgage loan must undergo mandatory counseling from a HUD (the U.S. Department of Housing and Urban Development) approved counselor prior to actually applying for the loan. This counseling is essentially an in-person or telephone session that outlines how the process works and answers any questions you may have. This counseling program is not to determine qualification, it is designed to provide you with the information you need to make the best decision for you and your family.

*As with a conventional mortgage there are certain costs involved in the process. Costs may include application fees, closing costs, insurance, appraisal fees, and quite possibly a monthly service fee, and there are other requirements, such as amount of home equity, age of home owner, etc

Reverse Mortgage Portal
Stop Foreclosure Mortgage Help
Massachusetts Reverse Mortgage Facts
Jumbo Reverse Mortgage Resources
1031 Reverse Mortgage Information
Benefits Of A Reverse Mortgage

More Reverse Mortgage Information and Resources

2006-03-27T20:12:00.000-08:00

With a reverse mortgage refinancing loan, you have no monthly payments, you continue to live in your home without an obligation to repay the loan and lenders cannot foreclose on the loan for the life of the borrower...Refinance Advisor"
The resources listed on this page provide links to reverse mortgage advisor-lenders that will provide you with all the tools you need to make getting your new reverse mortgage refinancing loan easy, quick and stress free...with easy qualifying loans and the application to apply...all online.

Reverse Annuity Mortgages

2006-03-10T22:56:00.000-08:00

An excellent source for information on mortgage rate, refinancing interest rates and other mortgage related resources is Reverse Mortgage Information And Resources>

Ray

Another Great Mortgage Site

2006-03-04T15:43:00.000-08:00

Check out this Reverse Mortgage Facts site, as it has a ton of information on reverse mortgage lenders and resources.

2006-02-01T22:49:00.000-08:00

A reverse mortgage loan is very much like a home equity loan. First we’ll look at the similarities between the two and then let’s discuss how to buy a home with a reverse mortgage.
First a reverse mortgage is a lump sum payment or annuity that is paid from a lender or insurance company to supplement or provide income. As the homeowner you repay the mortgage obligation when you sell or vacate the residence. When you die your estate is responsible to pay back the loan. The amount owed will never exceed the value of your home. If the home is sold and the proceeds exceed the amount owed, the excess money goes back to you or in the case of your death, your estate.

Further, when you buy a home with a reverse mortgage it is not considered taxable income and does not affect Social Security or Medicare benefits.

A home equity loan on the other hand, is a mortgage loan that is secured by the residual equity in your home. To calculate equity, you subtract mortgage debt from your home value. Home equity loans allow a homeowner to make repairs or other home improvements, refinance other debt, or use for miscellaneous purposes. Unlike a home equity line of credit, a home equity loan is an amortizing loan.

When you buy a home with a reverse mortgage you are paid either a lump sum amount or annuity based on the amount of equity in your home. For example, a monthly payment of $1,000 for the next 120 months would be a 10 year monthly annuity.
Aside from programs which help you buy a home with a reverse mortgage there are various other types of reverse mortgages. One type is for homeowners who want to tap into their equity but not draw out the entire amount. Here an annuity or lump sum would be paid out. Another reverse mortgage program is a home equity conversion mortgage. Affiliated with FHA (the Federal Housing Administration) this program combines the features of a home equity loan and a line of credit. Here you receive a fixed payment and can also draw on a credit line for additional cash.
The buy a home with a reverse mortgage program uses the new home as a source of repayment. You make a down payment and use the reverse mortgage loan for the rest of the home’s purchase price. You repay the loan with interest and other financing costs, when you sell the home, no longer use it as a primary residence, or in the case of your death, your estate would cover the outstanding loan. Most types of homes are eligible.
Tremendous growth in the housing market over the last few years has given many homeowners a considerable boast in equity. As a result, some of these homeowners are now looking to buy a home with a reverse mortgage.
Take for instance, the homeowners who purchased their homes in the early 1960’s for a modest price and now in their retirement years find their home has doubled or even tripled in value.
With this kind of equity to play with many homeowners are looking to buy a home with a reverse mortgage. This could be a country home or a cottage property. Or, the funds could even be used for luxury vacations, recreational vehicles, boats – you name it!
If you were to buy a home with a reverse mortgage you would be able to pay cash for the second ‘vacation’ home while continuing to live in your primary residence for as long as you wish or are able. Once you die, your primary residence would be sold to pay back your reverse mortgage loan, while the second home would become part of your estate.
To participate in these reverse mortgage programs, you and any co-borrowers must be at least age 62. In order to buy a home with a reverse mortgage you also must have no mortgage debt on your home. Further there are usually no income requirements to participate in the above mentioned programs.
According to Fannie Mae, a positive feature of reverse mortgage programs is that you’re never obligated for more than the loan balance or the value of the property, whichever is less; no assets other than the home are used to repay the debt. A reverse mortgage has neither a fixed maturity date nor a fixed mortgage amount.
If you’re seriously looking to buy a home with a reverse mortgage it’s important that you do your homework. Take the time to comparison shop between lenders. Seeking the advice of at least three reverse mortgage lenders is always wise.

2006-02-01T22:29:00.000-08:00

Betty and John, are in their mid-seventies and are currently weighing the advantages and disadvantages of a reverse mortgage as a way of freeing up some cash.

Like Betty and John, if you’re considering a reverse mortgage it’s important to do some research prior to making a decision. You not only need to understand the basic principles of this kind of mortgage but you also need to look at all the advantages and disadvantages of a reverse mortgage.

Essentially a reverse mortgage is a loan that permits homeowners 62 years of age and older to borrow against the equity in their homes without having to sell it. Further, you don’t have to give up the title or take on a new monthly mortgage payment.

A reverse mortgage loan is tax-free and needs only to be repaid when the borrower (or in the case of Betty and John, when the surviving spouse) dies or sells the home. At which time, the reverse mortgage loan must be repaid in full, including all interest and other charges.

When examining the advantages and disadvantages of a reverse mortgage it’s also important to consider both the process and the related costs of obtaining a reverse mortgage.

Unlike a conventional mortgage, with a reverse mortgage, the homeowner (the potential borrower) must meet with a reverse mortgage counselor. References for counselors can be obtained from banks offering reverse mortgages or the U.S. Department of Housing and Urban Development (HUD).

The purpose of these meetings which may take place in person or on the telephone is for the homeowner to learn about reverse mortgages and discuss alternative options. It also helps you decide which kind of reverse mortgage may be best.

As well as exploring the advantages and disadvantages of a reverse mortgage, it’s wise that the potential borrower, also compare costs between various lenders and request a Total Annual Loan Cost estimate for each.

Further to discussing the advantages and disadvantages of a reverse mortgage with a counselor, you also need to understand that there are certain costs involved in the reverse mortgage process. Costs may include application fees, closing costs, insurance, appraisal fees, credit report fees, and quite possibly a monthly service fee.

Remember too that since a reverse mortgage allows you to continue living in your home, you’re still responsible for property taxes, insurance and repairs. If these payments are not maintained, the loan could become due in full.

A reverse mortgage may also affect eligibility for federal or state assistance as well as Medicaid. That said, any reverse mortgage money that is received is tax-free and does not affect Social Security or Medicare benefits.

The condition of your home is also a large part of the approval process. It must be structurally sound and in good repair. If it’s determined that home repairs need to be done, the costs can also be financed through the reverse mortgage loan.

The total amount a homeowner can borrow all depends on the kind of reverse mortgage selected, how much equity is in the home, the loan's interest rate and most importantly, the age of the borrower. Typically the older a person is, the more they can expect to receive.

A borrower can receive reverse mortgage payments in one of the following ways: in a lump-sum payment; fixed monthly payments; a line of credit or a combination of any of the above. Most homeowners go for the line of credit option which allows them to draw on the loan whenever money is required.

Reverse Mortgage Resources

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2005-09-17T03:15:00.000-07:00