0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What is a buy to let mortgage?
A buy to let mortgage is a british term for a mortgage where the borrower is buying a property specifically to rent out. These are hard to get now because of the world economy.
How is a reverse mortgage paid off?
A reverse mortgage can be paid off either by selling the home and using sales proceeds, refinancing the home, or doing a streamline reverse mortgage to a new reverse mortgage program. If the homeowner wishes to move, they can sell and use a reverse mortgage to purchase a new home. If the homeowner has passed away, the heirs have 6 months to refinance the home, sell it, or decide to turn over the home to the lender. If there is negative equity in the home the homeowner or the heirs may turn the property over to the lender and walk away without personal recourse. Reverse mortgages are non recourse loans, meaning the only recourse the lender has for collecting lost funds is against the property itself.
What is a reverse mortgage for?
A reverse mortgage is for helping older people who might need money. A reverse mortgage is a type of loan for people over the age of 62 who are home owners and they can use this loan to pay for unexpected expenses.
What can you use your reverse mortgage proceeds for?
Anything you want. There are no restrictions on how you use your funds.
How do you buy a reverse mortgage home?
There are a few Reverse Mortgage products that can be used to buy homes. The FNMA Homekeeper is one of them. You have to put down a hefty downpayment, say 50% or more. Lenders have their own overlays on how much you have to use as a downpayment. From there you apply for the FNMA Homekeeper loan like any other real estate loan. The nice part is that you have no mortgage payments! Typically if a senior currently owns a home and wants to sell and buy elsewhere, if you have ample equity in your existing home, you can take out a home equity line of credit (cheaper than a new 1st mortgage) and use that equity for the downpayment for the new home. You than could use the large downpayment for the new home purchase using the FNMA Homekeeper reverse mortgage. Than sell your existing home after the new home purchase. Another way is to take a regular reverse mortgage out on your existing home, and use that money to plunk down on the new purchase and use the FNMA Homekeeper loan to purchase the new home, than sell your existing property. Make sure and check with individual lender rules on how many outstanding Reverse mortgages you can have at one time. Best of luck.
What information is needed in order to properly use a reverse mortgage calculator?
Information needed for a reverse mortgage calculator would be; the value of the property, the mortgage balance remaining, and the age of the youngest owner of the property.
Can you get a reverse mortgage on property with your life use deed?
I will assume you conveyed your property to a family member and reserved a life estate in that deed. You may be able to obtain a reverse mortgage but the new owners of the property will need to sign their consent to the mortgage. In my area of Massachusetts the banks are granting reverse mortgages to seniors who retained life estates when they conveyed their real property to their children as long as the children join in signing the mortgage.
What is a reverse mortgage exactly?
A reverse mortgage is a method for a homeowner with equity in real estate to create income without selling the entire property. The reverse mortgage company makes fixed payments over a period of time to a homeowner in exchange for ownership of the property at the end of the arrangement.
Reverse Mortgage Calculator?
Reverse Mortgage Calculator Use this calculator to help determine the balance of a reverse mortgage. This calculator is specifically designed to show you how the outstanding balance of a reverse mortgage can rapidly grow over a period of time.
What is a buy to let mortgage?
A buy to let mortgage is a british term for a mortgage where the borrower is buying a property specifically to rent out. These are hard to get now because of the world economy.
How is a reverse mortgage paid off?
A reverse mortgage can be paid off either by selling the home and using sales proceeds, refinancing the home, or doing a streamline reverse mortgage to a new reverse mortgage program. If the homeowner wishes to move, they can sell and use a reverse mortgage to purchase a new home. If the homeowner has passed away, the heirs have 6 months to refinance the home, sell it, or decide to turn over the home to the lender. If there is negative equity in the home the homeowner or the heirs may turn the property over to the lender and walk away without personal recourse. Reverse mortgages are non recourse loans, meaning the only recourse the lender has for collecting lost funds is against the property itself.
Can a bankruptcy be filed on a reverse mortgage loan?
Yes, a reverse mortgage does not have credit requirements. you can use one to pay your way out of a bankruptcy, or one right after a bankruptcy. However, the bankruptcy court does have to approve the reverse mortgage if you are in the process of doing one or still paying on one.
What is a reverse mortgage for?
A reverse mortgage is for helping older people who might need money. A reverse mortgage is a type of loan for people over the age of 62 who are home owners and they can use this loan to pay for unexpected expenses.
What can you use your reverse mortgage proceeds for?
Anything you want. There are no restrictions on how you use your funds.
How do you buy a reverse mortgage home?
There are a few Reverse Mortgage products that can be used to buy homes. The FNMA Homekeeper is one of them. You have to put down a hefty downpayment, say 50% or more. Lenders have their own overlays on how much you have to use as a downpayment. From there you apply for the FNMA Homekeeper loan like any other real estate loan. The nice part is that you have no mortgage payments! Typically if a senior currently owns a home and wants to sell and buy elsewhere, if you have ample equity in your existing home, you can take out a home equity line of credit (cheaper than a new 1st mortgage) and use that equity for the downpayment for the new home. You than could use the large downpayment for the new home purchase using the FNMA Homekeeper reverse mortgage. Than sell your existing home after the new home purchase. Another way is to take a regular reverse mortgage out on your existing home, and use that money to plunk down on the new purchase and use the FNMA Homekeeper loan to purchase the new home, than sell your existing property. Make sure and check with individual lender rules on how many outstanding Reverse mortgages you can have at one time. Best of luck.
Can you use your mortgage to buy furniture?
=== ===
Can you prepay principal on a reverse mortgage?
A reverse mortgage has no prepayment penalty, so you can prepay a portion or all of it at any time. Since mortgage interest is deductible in the year you pay it, you can use the reverse mortgage for tax planning making payments in years you need a bigger tax deduction, and making no payments in years you don't need one. You can move at any time, refinance it, or streamline it to a new reverse mortgage.
