Reverse Mortgage Facts

Reverse Mortgage Facts – What Is a Reverse Mortgage?

A great set of answers to pros and cons of a Reverse Mortgage from N.R.M.L.A. (National Reverse Mortgage Lenders Association). This fully explains what is a reverse mortgage? Reverse Mortgage Facts.

A reverse mortgage is a loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their homes into cash.

The product was conceived as a means to help retirees with limited income use the accumulated wealth in their homes to cover basic monthly living expenses and pay for health care. However, there is no restriction how reverse mortgage proceeds can be used.The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower.The borrower is not required to pay back the loan until the home is sold or otherwise vacated.  As long as the borrower lives in the home he or she is not required to make any monthly payments towards the loan balance. The borrower must remain current on property taxes, homeowners insurance and homeowners association dues (if applicable).

 

Free Consumer Guides. Find the Reverse Mortgage Facts in 3 guides from the National Reverse Mortgage Lenders Association.

25 Ways to Use a HECM. A reverse mortgage is a versatile retirement funding tool that can be utilized in many ways. Here are just some of them: Pay off your forward mortgage to…

Advice for Children of Seniors. Should My Mom and Dad Get a Reverse Mortgage? You are referred to as the “Sandwich Generation.” You’ve got kids in, or heading for, college as well as…

An Inside Look. CONTRARY TO AESOP’S PROVERB THAT “familiarity breeds contempt,” we find that familiarity breeds comfort. We like to peek at restaurant menus before we make a reservation. We like…

Features of Reverse Mortgages. With a reverse mortgage, the borrower always retains title or ownership of the home. The lender never, at any point, owns the home even after the last surviving…

HECM Payment Options. Line of Credit Most reverse mortgage borrowers establish a standby line of credit that they access only when funds are needed. Borrowers can access funds by submitting a…

Things to Look Out For. Cautions As with any financial transaction–be it a mortgage, a credit card or even a bank account–there are specific rules and obligations attached to reverse mortgages. Some of…

2 Ways to Tap Your Home Equity in Retirement. Alicia Munnell, Director of the Center for Retirement Research at Boston College, talks about two of the ways retired Americans can tap into another financial resource — their…

Types of Reverse Mortgages. Home Equity Conversion Mortgage HECM (pronounced HEKUM) is the commonly used acronym for a Home Equity Conversion Mortgage, a reverse mortgage created by and regulated by the U.S.…

What is a Financial Assessment?. Lenders must conduct “financial assessments” of every reverse mortgage borrower to ensure that person has enough money to pay ongoing costs, such as property taxes and homeowners insurance,…

What Is A Reverse Mortgage. A reverse mortgage is a loan available to people over 62 years of age that enables a borrower to convert part of the equity in their home into…

What is Home Equity? For many homeowners, the equity they have built up in their home is their largest financial asset, typically comprising more than half of their net worth. Yet confusion…Reverse Mortgage Facts from the standard in governing Reverse Mortgages N.M.L.R.A. brought to you by Scott Underwood and Reverse Mortgage Alabama; the senior lending division of SMG mortgage in Birmingham. One of Alabama’s top three lenders in Alabama five years running! Offices in Birmingham, Huntsville, Mobile, Alabama. Licenced to conduct business in Alabama, Tennessee, Mississippi, and Georgia.
Call Scott Underwood at (205) 908-2993 or (888)220-0393 or email Scott@ReverseMortgageAlabama.com