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With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home, sales price or FHA's mortgage limits, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you may borrow.
Whether it is a "good time" depends on your own circumstances. The fees are generally high and the amount owed on the mortgage increases at a rapid rate. If there is any change in ownership the bank will own the property. You need to be fully informed before you decide to sign.
What else can I help you with?
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 reverse mortgage calculator is the best one?
Opinions vary about which reverse mortgage calculator is the best, but a very good one is the AARP Reverse Mortgage Calculator. It provides estimates for two different reverse mortgage programs to tell you how much money you might receive under the plan.
Who pays back a reverse mortgage loan?
At "payback time" (the death of the last surviving beneficiary of the reverse mortgage) the house belongs to the bank.
Where is a good place to get online reverse mortgage info?
A good place to search for online reverse mortgage is any place which has a good record, interest rate and is fair towards their clients. Best is to see if the place has a good reputation.
What are the features of a reverse mortgage?
You can find the features of a reverse mortgage at www.aarp.org/money/personal/reverse_mortgages/ - . ANother good website is www.reversemortgage.org/Default.aspx?tabid=658
Do you still have to pay monthly mortgage if you have a reverse mortgage?
No, the purpose of a reverse mortgage mortgage is to eliminate mortgage payments permanently.
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.
What is a reverse mortgage lead?
A reverse mortgage lead is where you can get names of people that are interested in getting a reverse mortgage. These leads should already have been screened to meet the criteria for a reverse mortgage.
Where can I learn more about reverse mortgage fees?
Reverse Mortage Fees (RMF) are basically mortgage fees, backwards! Instead of the bank paying you money, you have to pay the bank money for mortgage. This can be good and bad.
What are the benefits of a reverse mortgage?
A good thing about reverse mortgage is that it does not have to have any income to qualify. Like the regular mortgage, it doesn't have any monthly loan payments. When your property gets sold, your mortgage will get paid off without any risk.
Can an illegal immigrant obtain a reverse mortgage?
i am a mortgage broker, i do not believe an illegal alien can obtain a mortgage at all. That is one of the questions on the "respa" documents in all mortgage applications. You are not a good risk for a bank; at any time you can be deported. * For the person to obtain a reverse mortage they would need to be a homeowner with equity. Therefore, it would seem logical that they should speak with their current mortgage lender.
Can you qualify for a Reverse mortgage with balance owed on original mortgage?
Yes. The reverse mortgage must however pay off the existing mortgage balance, which means you need some equity to make the qualification work. If there is not enough equity in the home to qualify for a reverse mortgage you may choose to bring in the amount needed to finish paying off the existing mortgage- thus eliminating the mortgage payments for good.
