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.
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…
Borrower Requirements and Responsibilities. Age qualification: All borrowers listed on title must be 62 years old. If one spouse is under 62, it might be possible to get a reverse mortgage. However,…
Reverse Mortgages: Fact vs. Fiction. This NRMLA graphic debunks 5 common misconceptions about reverse mortgages.
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…
Reverse Mortgage Calculator. How much may a reverse mortgage offer you? Enter your own information and get an estimate.
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…
