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Posts Tagged ‘reverse mortgage’

I’m a reverse mortgage professional who closed a for an non ordinary family. Their home was paid off completely. The property was worth well over the Maximum Claim Amount. The husband was still working as a consultant and brought in enough for living expenses and property taxes. With both husband and wife receiving Social Security it seemed that pulling money out of their home was an unnecessary move.

While asking more questions,, I found out that their son had recently completed Veterinary School and was about to begin his own practice. The parents decided to help their son in starting his new business.

Reverse mortgages are loans against your home that require no repayment for as long as you live there. As opposed to regular home loan loans, reverse mortgages have no earnings requirements and are based solely on the equity of the home or condo. You will find no monthly payments to make as the home loan is due only when the borrower is no longer living at the residence.

Reverse mortgage is getting to be more and more common in most homes these days. Along with its popularity is the soaring of housing prices and the lowering of interest rates at their record lows. Let’s take a look at the reasons why despite the bad publicity that reverse mortgages had, they have managed to stay in the industry all these years to become the “in” thing for many borrowers today.

Nicknamed predatory loans, the reverse mortgage took more beating when it was embroiled in scandals. But in the last decade, it has earned more credibility after legislation required more upfront disclosures of costs.

There are some costs to getting a reverse home mortgage that you need to be aware of. The costs involve four types of fees, plus interest, at the closing of your new mortgage. The four fees are an origination fee, third-party closing costs, mortgage insurance premiums, and a low monthly service fee of $20-30. Many people choose to finance the fee into their mortgage.