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A reverse mortgage is a home equity loan without a payment. You do not repay the loan as long as the home remains your principal residence. Your income and credit rating is not considered when qualifying for the loan. The writer is a reverse mortgage expert.

We’d go to great lengths to explain to these people and to their adult children when they come out of the hospital that it’s important to modify their home to make it safer for them, but they wouldn’t spend the money,” Mack said. “They would go home and compromise their quality of life and put themselves in jeopardy of having another disability because they wouldn’t put in a grab bar or they wouldn’t install a walkin shower. The amazing thing was that they began consoling me, instead of me consoling them. They’d say ‘Susan, honey, don’t worry.
I’ll be just fine. I’ll make do.’ ”

According to the Princeton, New Jersey-based SRI Consulting Business Intelligence, the amount of household debt for people over 65 nearly tripled between 1992 and 2000. Many seniors simply haven’t saved enough for retirement: 44 percent of retirees age 60 or older (overlap with the Silents) have saved $75,000 or less; eleven percent have saved nothing at all. Forty-four percent cite Social Security as their primary source of income.2

Biggest lure to a reverse mortgage: These reasons can be grouped in to the need for basic living necessities, plus property taxes, which have been compromised by rising health care costs; supplements to dwindling financial portfolios, home modifications, travel, and money to assist in the costs of raising grandchildren. Led to participate: They recently discovered availability of the reverse. Often, the only funds available to remain in the home, make needed repairs. They have been convinced to “live a little” by adult children, willingness to help out, surprised by current value of home brought by appreciation.

A brokers mortgage in canada can fine tune the mortgage product for you. An expert mortgage broker is essential to understand your Vancouver mortgage options.

The writer is a reverse mortgage broker in Canada. He specializes in reverse mortgages to help seniors life their life in dignity. Reverse mortgages can greatly assist the elderly in living their lives to the fullest.

If my home appreciates in value during the mortgage term, who will be entitled to that appreciation? The new reverse mortgage does not provide the lender with an equity share in the appreciation of your home. Any money remaining after the mortgage is paid belongs to you or, upon your death, to your estate. You or your estate is legally required to pay back to the lender only the outstanding balance due.

What if I decide to sell my home? If you choose to sell your home, the outstanding balance becomes due and payable to the mortgage lender. Any proceeds left over once the loan is paid belong to you.

Can I sell my home to my children and continue to live in it? If you sell your home to your children or any other individual (or simply give them title), the loan will become due and payable. After the loan is repaid, any arrangement for your continued occupancy of the property must be made with the new owners.

Must I payoff any loans or liens against the property? Reverse mortgages require that all prior loans and liens be paid off so that the reverse mortgage loan is in first place, or in first lien, position. Many times, the proceeds from the reverse mortgage can payoff the underlying loans.

BC mortgage brokers are not all the same. As a BC mortgage broker and a writer, the author has a deep insight into the BC mortgage market. Check out his BC mortgage rates at his blog.

A reverse mortgage is a home equity loan without a payment. You do not repay the loan as long as the home remains your principal residence. Your income and credit rating is not considered when qualifying for the loan. The writer is a reverse mortgage expert.

How much money can be borrowed? The reverse mortgage loan amount is based on the home value, the number and age of the homeowner(s), and the current interest rate. The maximum allowable home value varies depending on the program selected. The FHA program has limits depending upon county.

Will my heirs owe anything if I die? You, or your heirs, will never owe more than your property is worth. Upon your death, the loan balance consisting of principal paid to you or on your behalf, plus any accrued interest, becomes due and payable. Your estate/heirs may choose to repay the loan by selling the property or they may want to pay it off by other means so they can keep the home. If the loan should exceed the value of your property, your estate will owe no more than the value of the property; the mortgage insurance will cover any balance due to the lender. No additional financial claims may be made against your heirs or estate.

Can I be forced to sell if property values decline? As long as you continue to occupy the property as your principal residence, you cannot be forced to sell or vacate the property. That’s still true even if the total amount you owe on this loan exceeds the value of the property or if the fixed term over which you received monthly payments has expired. No deficiency judgment may result from your loan. Mortgage insurance covers any further obligation to the lender.

A brokers mortgage in canada can fine tune the mortgage product for you. An expert mortgage broker is essential to understand your Vancouver mortgage options.

The writer is a reverse mortgage broker in Canada. He specializes in reverse mortgages to help seniors life their life in dignity. Reverse mortgages can greatly assist the elderly in living their lives to the fullest.

What’s the difference between a home equity loan and a reverse mortgage? A reverse mortgage is a home equity loan without a payment. You do not repay the loan as long as the home remains your principal residence. Your income and credit rating is not considered when qualifying for the loan. There is no requirement that you requalify each year.

With a home equity loan, you must make regular payments to repay the loan. These payments begin as soon as the loan is originated. To qualify for such a loan, you must earn a monthly income great enough to make those payments. If you fail to make the monthly payments, the lender can foreclose, and you can be forced to sell your home. In addition, you may be required to requalify for a home equity loan each year. If you do not requalify, the lender may require you to pay the loan in full immediately. So while both the reverse mortgage and the home equity loan enable you to turn the equity in your home into spendable dollars, there are some important differences between the two types of mortgages.

Who helps to clarify the reverse process? All potential borrowers must first meet with an independent reverse mortgage counselor before filling out an application. The counselor’s job is to educate and inform consumers about the various reverse programs and the alternative options available. This required counseling session is at no cost to the borrower and can be done in person or over the telephone.

A brokers mortgage in canada can fine tune the mortgage product for you. An expert mortgage broker is essential to understand your Vancouver mortgage options.

The writer is a reverse mortgage broker with numerous reverse mortgage clients

Three reverse mortgage products are available to consumers in the United States and one product in Canada. In the United States, the most popular reverse mortgage is the federally insured FHA Home Equity Conversion Mortgage (HECM). The other major product is the Home Keeper reverse, developed in the mid-1990s by Fannie Mae. Financial Freedom Senior Funding Corporation offers a jumbo private reverse mortgage product, designed to accommodate seniors living in higher-priced homes. This is the

Cash Account Plan.
The HECM and Home Keeper products are available in every state, while Financial Freedom’s product is offered in most states and the District of Columbia. In Canada, the reverse mortgage product offered nationwide is the Canadian Home Income Plan (CHIP).

Before we get started on the likely candidates for reverses, let’s take a peek at the basics and supply some answers to many of the nuts-andbolts questions that consumers first raise regarding reverses:

Does the bank take my house? The reverse mortgage lender, like any lender, rarely, if ever, takes the title to the property. A reverse mortgage loan is the same as a forward, or conventional, mortgage loan: There’s a lien on the property until the loan is repaid. When the amount owed is repaid (at death or relocation in a reverse mortgage) the lender is paid the amount of the lien. Banks don’t really want your house: They want to lend you money, not act as a landlord and real estate property manager.

A brokers mortgage in canada can fine tune the mortgage product for you. An expert mortgage broker is essential to understand your Vancouver mortgage options.

The writer is a reverse mortgage broker in Canada. He specializes in reverse mortgages to help seniors life their life in dignity. Reverse mortgages can greatly assist the elderly in living their lives to the fullest.

Consumers can choose how to receive the money from a reverse mortgage. The options, include a lump sum, fixed monthly payments for life, a line of credit, or a combination of the above. The most popular option-chosen by more than 60 percent of borrowers-is the line of credit, which allows consumers to draw on the loan proceeds at any time. The size of the reverse mortgage depends on age at application, loan type, home value, and-sometimes- Location.

In general, the older the consumer, the more valuable the home, and the lesser the amount owed, the larger the reverse mortgage will be.

The costs associated with getting a reverse mortgage, include the origination fee (which can be financed as part of the mortgage), an appraisal fee, and other charges similar to those costs for regular mortgages. One of the most confusing fees involved is the mortgage insurance premium. Seniors are usually flabbergasted when they find the amount is 2 percent of the appraised value of their home.

Couple that cost with a loan origination fee and standard closing costs, and a borrower can easily spend $6,000 to borrow $319 a month for life. Why, you ask, should a senior who owns his or her home free and clear have to pay for mortgage insurance? Unlike typical mortgage insurance that protects the lender if the borrower defaults, mortgage insurance on a reverse mortgage ensures the borrower (or the borrower’s estate) will never owe more than the value of the home. That means other assets will never be used to repay the mortgage if the home’s value turns out to be less than the loan balance. The new reverse mortgage is a non-recourse loan, and the mortgage insurance guarantees that component.

A brokers mortgage in canada can fine tune the mortgage product for you. An expert mortgage broker is essential to understand your Vancouver mortgage options.

The writer is a reverse mortgage broker in Canada. He specializes in reverse mortgages to help seniors life their life in dignity. Reverse mortgages can greatly assist the elderly in living their lives to the fullest.

“There is simply no other pot of funds sitting around that is going to solve the long-term care situation in this country other than home equity,” Stucki said. “I just don’t see any other way-unless people simply want to dig deep down and payout of their pockets. The idea is to use your home to stay at home.”

That’s why the appeal of reverses will become even greater as the population ages. We will explore the huge potential market and show why the use of these built-up equity funds will be as varied as the population segments considering their use. In Chapter 9, we will examine how today’s reverse mortgage has come a long way from the first reverse loans that contained no consumer safeguards while often providing the underwriting lender a huge portion of the home’s future value. Since 1989 when the U.S. Department of Housing and Urban Development (HUD) first launched a pilot program that would insure reverse mortgages, the vehicle has been refined and improved to a point where reverses are readily accepted in the secondary mortgage market.

In laymen’s terms, Wall Street has taken notice. There’s a market for these packages as investment instruments in conventional corporate structures. Fannie Mae, the biggest player in America’s secondary mortgage market, is eager to get its hands on every reverse mortgage available. In fact, it even buys every reverse mortgage that HUD insures. The huge, stodgy, conventional mortgage mom spreading her wings to encompass the poor, ragamuffin, government outcast? Did hell freeze over while we were all refinancing our conventional mortgages? A few short years ago, the chance of Fannie Mae buying government loans was about as slim as the New York Yankees fan club inviting Boston Red Sox season ticket holders to a Sunday afternoon picnic.

A brokers mortgage in canada can fine tune the mortgage product for you. An expert mortgage broker is essential to understand your Vancouver mortgage options.