Open Question: Anyone know anything about reverse mortgage?

[Administrator]

My in-laws are getting on in years. 75 and 73. They are struggeling to keep the house and pay bills. I've see the commercials for reverse mortgage, sounds good to me but they would make is sound good in a commercial. Can you tell me if this is a good thing? As long as they get money to live on while they are still alive, that's fine. We don't care if we inherit the house and such. Any info would be appreciated. Thanks.

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[rukitamo]

Hai,

I am Rukitamo.

A reverse home mortgage is a loan instrument that allows Senior Citizens (age 62 or older) to borrow money against their home's equity. You can get this money in a lump sum, a line of credit or monthly installments. How much money you can borrow depends on your age and the value of the equity in your home. The HUD site Reverse Home Mortgage Info has a lot of information and a mortgage calculator you can use to figure out how much money you can borrow. The regulators seem to have taken much of the risk out of the system, for instance, you never have to pay the loan off until you're done with the house, so, you can't lose the house for missing a payment. The amount you can borrow with FHA approval is also set so low that you're not at risk of running out of equity before you no longer need the home. I know, this sounds like the other sites...all upside. I'll get to the downside when we discuss the costs. Even with high costs, the reverse home mortgage can solve a financial problem common to many seniors. To help you get more info, here are the latest, top-selling books on the reverse mortgage.

[sally]

Hey Alan!

I was researching on internet a couple of days back and I found your required piece of information on bad credit mortgage.

I would like to point that, bad credits loans are offered to customers with bad credit rating or bad credit history, and that too with high interest rates. If you have bad credit mortgage then let a bank to recover your loan by selling your property that is mortgage with the bank. But, this is business and many companies are adopting it as people are reluctant in making their payments on time which leads to bad credit rating.

Moreover, bad credit loans are given for a short period by the banks to increase the recovery ratio. Almost every bank now is providing the facility for the people with bad credits, and as soon as you get your loan approved you will undergo some current financial status checking and legal complications. There are many online companies offering bad credit mortgage loan, as it has become one of the important issues for customers, so you can always go for online search for the company and apply for bad credit mortgage loan.

To advise you honestly, bad credit mortgage loan is a better option but it is not a permanent solution to your problems. So, it is advised not to use these loans in excess but only to be used when the situation slips out of your hands. Nevertheless, the choice is entirely yours.

Regards,
Sally

[jennifer]

Hai,

I am Jennifer.

The reverse mortgage helps the seniors over sixty two years old to use the equity of the home to supplement an existing income. Reverse mortgage is loan advance to the home without repayment unless the owner moves, dies, or sells the home.

In the United Kingdom, reverse mortgage is more common as lifetime mortgage. Hence, the owner never needs to repay as long as the owner lives in the home. The reverse mortgage lenders distribute the cash as lump sum, regular payment, credit line, or combinations.

In the United States, the basic types of reverse mortgage are single purpose reverse mortgage, federally insured reverse mortgage, and proprietary reverse mortgage. There may be more types in different countries, but the main idea is very similar.

Single Purpose Reverse Mortgage

The government agencies and non profit organizations offer this type of reverse mortgage. It is generally low costs. Although the government agencies may be local or state, the mortgage is available in a few locations only. The purpose of reverse mortgage is specific such as home repair, home improvements, and property taxes. And, the owner earns low or moderate income.

Federally Insured Reverse Mortgage

The U.S. Department of Housing and Urban Development (HUD) backs this type of reverse mortgage. This type is more commonly known as Home Equity Conversion Mortgages (HECM). The upfront costs are high especially if the owner stays in short period of time. So, this reverse mortgage is costlier than Single Purpose Reverse Mortgage.

It is the opposite of Single Purpose Reverse Mortgage in which the reverse mortgage loan can be used in any purpose. And, the mortgage are widely available anywhere. There are also no income or medical requirements.

Proprietary Reverse Mortgage

The private companies backed or owned this type of reverse mortgage. It is generally the most expensive type of reverse mortgage. However, the owner may get more than other types of reverse mortgage. Generally, it works the same way as the Federally Insured Reverse Mortgage.