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Taking out a reverse mortgage is easy. The requirements are few and the sum of money you can borrow depends on your age and the unpaid balance of the original home loan. The reverse mortgage loan will be yours to use for any reason. Buy a new car; go on world-wide vacation, remodel the house, or buy new furniture. The reverse mortgage loan has no stipulations. It is yours, free and clear, to do with as you like.
However, before the lender grants the loan, there are stipulations that must be met. Borrowers who apply for a reverse mortgage must get counseling to be sure that they understand every aspect of the loan and what it entails before the loan is granted. With this type of stipulation it is obvious that a reverse mortgage is not as safe as it sounds.
1. Understand that to qualify for a reverse mortgage you must own the home and be at least 62 years old. If you do not own the home outright, the remaining mortgage must be a small amount. This is important because the house will be paid off in full by the reverse mortgage loan.
2. In essence, you are paying off the original loan and replacing it with the the reverse mortgage loan. In this case, the bank becomes the beneficiary of your home when you die.
3. Monthly home payments, as you knew it, are no longer required. You do not have to repay the amount of the reverse mortgage loan either. You own the house free and clear. The money you receive on the reverse mortgage is yours to use without restrictions.
4. However, there is one stipulation required prior to getting a reverse mortgage. Keep this in mind, it is of the utmost importance, because you can stand to lose your home if you do not understand. One of the stipulations for a reverse mortgage loan is (1) you must live in the home. (2) pay your homeowner taxes. (3) keep your home insurance up to date. (4) take care of the property, trim bushes and cut the grass.
5. There is the catch! If you or your estate do not adhere to the steps above, your home can go through a foreclosure, and the bank will claim ownership of the house. You could find yourself, at the age of 75 or 85 or older, with no home and no place to live. You will be homeless.
There are pitfalls to a reverse mortgage. These will be explained during counseling. Unless you understand every word, do not sign the reverse mortgage loan. It is good practice to take someone with you-do not go alone. Never sign any contract, no matter how good it sounds, if you do not completely understand what you are signing. Heed this warning.
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∙ 11y ago
A reverse mortgage can be safe if borrowers fully understand the terms and obligations. It is important to work with a reputable lender, review the terms and fees carefully, and consider the long-term financial implications. It is also advised to discuss the decision with a financial advisor or housing counselor to ensure it aligns with your financial goals and needs.
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How does an AARP Reverse Mortgage Calculator help seniors?
An AARP Reverse Mortgage Calculator helps seniors estimate how much they could potentially borrow through a reverse mortgage loan based on factors like age, home value, and current interest rates. It provides a rough idea of the funds they may be eligible to access as a financial resource for retirement planning.
Does AARP offer a reverse mortgage to seniors?
AARP itself does not offer reverse mortgages but provides information and resources about them. Seniors can obtain a reverse mortgage through various lenders approved by the Federal Housing Administration (FHA). It's important to explore all options and seek independent financial advice before deciding to proceed with a reverse mortgage.
Reverse mortgage senior citizens?
A reverse mortgage is a financial product available to senior citizens that allows them to borrow against the equity in their homes. Unlike a traditional mortgage, with a reverse mortgage, borrowers do not have to make monthly mortgage payments. Instead, loan proceeds are typically distributed to the borrower in the form of a lump sum, monthly payments, or a line of credit. The loan is repaid when the borrower sells the home, moves out of the home, or passes away.
Can a parent add a son or daughter to their reverse mortgage when one parent passes away and son or daughter is not quite 62 yrs old?
Typically, to be eligible to be added to a reverse mortgage, the son or daughter would need to meet the age requirement. If they are not yet 62 years old, it may not be possible to add them to the reverse mortgage. It would be best to consult with the reverse mortgage lender or a financial advisor to explore available options.
Can a family and care giver take over the home that had a reverse mortgage?
Typically, when the borrower on a reverse mortgage passes away, the family or heir can choose to sell the home, purchase it for the amount owed on the reverse mortgage, or walk away from the property. If they wish to keep the home, they will need to repay the reverse mortgage loan in full. However, it's important to consult with a legal professional or financial advisor for guidance on the specific circumstances of the situation.
Is money in your reverse mortgage acct safe from creditors?
No.
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.
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.
What are the reverse mortgage scams taking place today?
Yes, there are reverse mortgage scams, as well as regular mortgage scams. You need to be careful who does your reverse mortgage, so you do not get scammed
What is reverse equity mortgage?
a reverse equity mortgage usually refers to a reverse mortgage, also referred to as a HECM loan. (Home Equity Conversion Loan). The key difference between a regular mortgage and a reverse mortgage is that no monthly mortgage payments are due on a reverse mortgage. A reverse mortgage also does not have credit or income requirements because there are no payments due. Qualification is based on age- minimum age 62- the value of the home and its location.
What is new reverse mortgage and where can I learn about it?
You can not get a reverse mortgage if you already have a reverse mortgage in exsistence. If you do not have one you can go to a few places for help such as; rvmortgage.com and allrmc.com
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 American reverse mortgage?
American reverse mortgage is when you borrow money based on the value of your house. A reverse mortgage has the option of being a lump sum or installments.
Where can you find a reverse mortgage calculator?
Reverse mortgage calculators can be found on line on most mortgage websites.There are hundreds of mortgage loan sites.& This calculator makes it easier to understand the reverse mortgage math and to let you see if this type of mortgage is best for you.
Where can I learn about liberty reverse mortgage?
You can learn about liberty reverse mortgage from any local tax consultant or by finding it on a website which deals specifically with liberty reverse mortgage.
Can you re-finance your reverse mortgage?
yes, you can refinance it to a regular mortgage, or if interest rates are lower you can streamline it to a new reverse mortgage.
What do you do with marketing and reverse mortgage?
There isn't any marketing that you need to do for an reverse mortgage. All you have to do is visit a local realator and you can also go online and search under reverse mortgage.
