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Robert Jackme
Robert Jackme is an advisor with 5 years experience of Mortgage, Reverse Mortgage and lander's issues.
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How does a reverse mortgage work?
Reverse mortgage is a loan made by a lender to a homeowner using the home as security or collateral. With a traditional mortgage, the homeowner uses their income to pay down the debt over time.
However, with a reverse mortgage the loan balance grows over time because the homeowner is not making monthly mortgage payments.
A reverse mortgage loan typically does not require repayment for as long as the borrower(s) continues to live in the home as the primary residence, pays property taxes and insurance, and maintains the home according to the Federal Housing Administration (FHA) requirements or until the last homeowner has passed away or has moved out of the property.
The amount of equity you can access with a reverse mortgage is determined by the age of the youngest borrower, current interest rates, and the value of the home.
Please note that you may need to set aside additional funds from loan proceeds to pay for taxes and insurance.
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Reverse Mortgage Guide
How Modeling Can Prove Reverse Mortgage Solutions to Common Problems
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How Modeling Can Prove Reverse Mortgage Solutions to Common Problems
Reverse mortgage originators have seen it all when it comes to common reverse mortgage uses. In fact, the National Reverse Mortgage Lenders Association lists 25 ways to use a Home Equity Conversion Mortgage on its consumer-facing website including paying off an existing mortgage, remodeling a home to accommodate aging limitations and maintaining a line of credit that grows for health emergencies.
But including a reverse mortgage in financial plans today can be even more complex as financial planners have come around to their uses, and borrowers are becoming more savvy in how they are using HECMs to curb potential shortfalls elsewhere in their retirement plans. Being able to show scenarios over time to the borrower can be a major positive in the sales process, reverse experts say, and it can prove some solutions to very common problems faced by many households.
In presenting ways in which origination platform ReverseVision can help model prospective scenarios for loan originators and borrowers, the company’s Director of Learning and Development Dan Hultquist detailed several interesting borrower scenarios—and their solutions—with the help Steve Resch, VP of Retirement Strategies for Finance of America Reverse, who also has led a financial planning firm.
By modeling assumptions, Hultquist said during a presentation Wednesday at ReverseVision’s annual UserCon conference in San Diego, loan originators can show borrowers what their financial picture will look like down the road—including what happens when they make payments toward the reverse mortgage loan, opt for a line of credit, or anticipate the home will depreciate over time.
“The most popular feature of the modeling tool is showing what happens when you make payments,” Hultquist said. “For someone still in the workforce, show them making payments. It gives them future security.”
For one couple that Resch advised in the past, making payments was exactly what the couple wanted to do. Both younger than 65, the couple intended to remain working and then draw down from the loan proceeds on an annual basis. By showing the line of credit growth picture relative to cash flow, the couple saw that taking the reverse mortgage line of credit as soon as possible and making payments would enable them to meet their retirement goals.
In another scenario, a couple that Resch advised had a substantial stock portfolio—but selling the portfolio meant facing capital gains tax. Intending to leave the investment portfolio to their children, who would not face such capital gains after the couple passed on, but also wanting to do a remodel on their home in the meantime, they opted to take out a reverse mortgage to achieve those short term goals and protect their investment holdings.
Resch and Hultquist also discussed some of the common misperceptions about reverse mortgages and how modeling can help combat them. Once faced with an adult child of prospective borrowers who insisted the home was in a market that would face depreciation over time, Hultquist showed a depreciating home scenario can actually warrant a reverse mortgage even sooner than an appreciating home.
“If you have a client who says the home will depreciate, model it. That’s’a reason to do the reverse mortgage,” he said. “Don’t wait. The credit line growth over time will counter depreciation.”
Written by Elizabeth Ecker
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Watch This Video To Learn:
How Does a Reverse Mortgage Work?
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Bitcoin is a Hassle ... But Maybe Not For Long
Buying and selling with cryptocurrencies is hard. Every time you make a transaction, it's recorded in the blockchain, a digital ledger. That takes up a lot of resources, such as hard drive space. But a new technology called the Lightning Network could offer a way to speed up the process. It's a huge change in how cryptocurrencies could work. Marketplace Tech host Molly Wood spoke about it with Timothy Lee, a reporter at the tech news site Ars Technica. The following is an edited transcript of their conversation.
Timothy Lee: The way that bitcoin works is conceptually very simple, which is just that when you make a payment, you tell everybody else on the network that that payment happened, and then they all make a copy of that record that you made that payment. And if you think about trying to scale that up to a planet that has billions of people on it, that's just obviously not going to work. It just generates a lot of data. You know, there's millions or billions of transactions made every day around the world. And if you try to do that in bitcoin, everybody will have to have a massive hard drive.
Molly Wood: So let's say you're a food truck and you start taking these payments over the Lightning Network, and then at the end of the month when you do your basic ledger work you would just post the amount of bitcoin that you took in and spent as a number as opposed to, like, a thousand transactions.
Lee: Yes, exactly. So this is a good example. Right now there is a bitcoin transaction every time a customer pays you, and so with transaction fees being high for the bitcoin network, you can pay a lot of money to accept these payments. With the Lightning Network, what would happen is you would have a payment channel, and say you had a thousand transactions over the course of the month, the Lightning Network would kind of automatically aggregate all of those at the end of the month. You would just get one transaction on the blockchain that's the sum of all of the payments that you received.
Wood: On a scale of 1 to 10, I mean, people seem pretty excited about this. You described it as what the World Wide Web was to the internet. Like the layer that makes it actually accessible to normal humans. Where do you put this? How big a deal is it?
Lee: Within the bitcoin world, this is probably the biggest thing that has happened to bitcoin since bitcoin was created. It's, I think, the most creative and potentially transformative change people have made to the bitcoin network. I still think there's a larger question about is bitcoin in general going to be a really important part of the world economy? I mean, there's still obvious issues, like you're still using bitcoins, which have a very unstable value, and that doesn't change that at all. And so if you're a skeptical client for those kinds of reasons that you just don't think that cryptocurrency in general is very useful, this particular innovation may or may not change that.
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Watch This Video:
Ripple's XRP is the hot new Digital Currency — Here's how you can buy it
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How do Reverse Mortgages Work?
When you have a regular mortgage, you pay the lender every month to buy your home over time. In a reverse mortgage, you get a loan in which the lender pays you. Reverse mortgages take part of the equity in your home and convert it into payments to you – a kind of advance payment on your home equity. The money you get usually is tax-free. Generally, you don’t have to pay back the money for as long as you live in your home. When you die, sell your home, or move out, you, your spouse, or your estate would repay the loan. Sometimes that means selling the home to get money to repay the loan.
There are three kinds of reverse mortgages: single purpose reverse mortgages – offered by some state and local government agencies, as well as non-profits; proprietary reverse mortgages – private loans; and federally-insured reverse mortgages, also known as Home Equity Conversion Mortgages (HECMs).
If you get a reverse mortgage of any kind, you get a loan in which you borrow against the equity in your home. You keep the title to your home. Instead of paying monthly mortgage payments, though, you get an advance on part of your home equity. The money you get usually is not taxable, and it generally won’t affect your Social Security or Medicare benefits. When the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence, the loan has to be repaid. In certain situations, a non-borrowing spouse may be able to remain in the home. Here are some things to consider about reverse mortgages:
There are fees and other costs. Reverse mortgage lenders generally charge an origination fee and other closing costs, as well as servicing fees over the life of the mortgage. Some also charge mortgage insurance premiums (for federally-insured HECMs).
You owe more over time. As you get money through your reverse mortgage, interest is added onto the balance you owe each month. That means the amount you owe grows as the interest on your loan adds up over time.
Interest rates may change over time. Most reverse mortgages have variable rates, which are tied to a financial index and change with the market. Variable rate loans tend to give you more options on how you get your money through the reverse mortgage. Some reverse mortgages – mostly HECMs – offer fixed rates, but they tend to require you to take your loan as a lump sum at closing. Often, the total amount you can borrow is less than you could get with a variable rate loan.
Interest is not tax deductible each year. Interest on reverse mortgages is not deductible on income tax returns – until the loan is paid off, either partially or in full.
You have to pay other costs related to your home. In a reverse mortgage, you keep the title to your home. That means you are responsible for property taxes, insurance, utilities, fuel, maintenance, and other expenses. And, if you don’t pay your property taxes, keep homeowner’s insurance, or maintain your home, the lender might require you to repay your loan. A financial assessment is required when you apply for the mortgage. As a result, your lender may require a “set-aside” amount to pay your taxes and insurance during the loan. The “set-aside” reduces the amount of funds you can get in payments. You are still responsible for maintaining your home.
What happens to your spouse? With HECM loans, if you signed the loan paperwork and your spouse didn’t, in certain situations, your spouse may continue to live in the home even after you die if he or she pays taxes and insurance, and continues to maintain the property. But your spouse will stop getting money from the HECM, since he or she wasn’t part of the loan agreement.
What can you leave to your heirs? Reverse mortgages can use up the equity in your home, which means fewer assets for you and your heirs. Most reverse mortgages have something called a “non-recourse” clause. This means that you, or your estate, can’t owe more than the value of your home when the loan becomes due and the home is sold. With a HECM, generally, if you or your heirs want to pay off the loan and keep the home rather than sell it, you would not have to pay more than the appraised value of the home.
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#Reverse Mortgage#How do Reverse Mortgages Work?#Loan#Reverse_mortgage_a-financial_tool_for_retiree#refinance#beingarealtor
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Bitcoin price LIVE: Bitcoin continues to fall as Federal judges in NY plot regulation
Bitcoin took another hit yesterday after the price plunged from $11,926 to $10,925 in just a few hours yesterday evening.
Bitcoin is currently priced at $10,960 with ethereum doing well at $1,166 and ripple $1.24.
New regulatory noise emerging from New York will concern wallet holders with Fortune reporting that Federal judges in Brooklyn, New York, are about to rule on the question of what exactly bitcoin is and whether it can be regulated.
The main question for the judges is whether or not digital currencies are securities that can be regulated like stocks or bonds.
Peter Henning, a former SEC and Justice Department lawyer, said: “If it’s not a security, then what is it?”
Judges in US courts are by no means on their own in searching for clarity on digital assets.
After the £380million Coincheck heist this weekend, Japan’s financial watchdog will conduct inspections on all exchanges to better prevent future thefts.
Coincheck became the victim of what is believed to be the biggest ever cryptocurrency robbery after hackers made away with millions in Bitcoin rival NEM.
Coincheck was ordered to beef up their security following the massive heist and have promised to pay customers back out of their own funds. Coincheck co-founder and CEO Yusuke Otsuka has said the currency was sent "illicitly" from outside the company.
He said the company did not know how the 523 million tokens went missing and insisted the firm was working round the clock to ensure the safety of all client assets.
Mr Otsuka told a press conference at the Tokyo Stock Exchange: “We know where the funds were sent.
“We are tracing them and if we’re able to continue tracking, it may be possible to recover them. But it is something we are investigating at the moment.
“I deeply apologise to the customers we have troubled.”
3.21pm - UPDATE - Can google predict the next bitcoin boom?
Nick Colas, co-founder of DataTrek Research, has published groundbreaking research on how Google Trends on how cryptocurrencies such as bitcoin and Ripple mirror price rises and falls.
Speaking to CNBC, Mr Colas said that the number of Google searches on 'bitcoin' mimicked the price trend of the cryptocurrency.
He told the business network: "Bitcoin - because it has a notionally fixed supply - will vary price based on demand.
"By looking at the number of people who search for the word 'bitcoin' on Google, we get a pretty good sense of where the interest is.
"The search trends show the same price trends. Just after Thanksgiving, the sharp rise in bitcoin search trend saw a double in wallet growth."
Read the full report here.
1.56pm - UPDATE - Bitcoin mining becomes source of frustration over rising GPU prices
Bitcoin and other digital currencies use PC hardware to mine coins and complete transactions.
Polygon report that the shortage of gaming graphics cards has kept prices for AMD’s and Nvidia’s midrange and high-end GPUs very high.
Nvidia’s GeForce GTX 1070 is typically sold at $380, but that some graphics cards are now being sold for more than $700 – an 80 percent price spike.
Miners use rooms full of graphics cards to solve the mathematical problems, authenticate payments, and create new bitcoin.
12.18pm - UPDATE - South Korea implements TRADING BAN
The South Korean Government began to implement a ban on all anonymous traders in an attempt to crackdown on crypto criminal activity.
Bitcoin and blockchain expert Simon Taylor said: "I think it’s evidence of a government trying to get its hand around a subject which was seen as ungovernable.
"Historically we thought this thing was decentralised, there was no way to control it but what you have here is centralised exchanges. This is the same as a bank. This is something that holds the bitcoin or the digital currency on your behalf."
Mr Taylor added that the South Korean Government's decision to ban cryptocurrency trading had been taken to crack down on all possible criminal activities the anonymity of bitcoin trading could have facilitated.
The ban is expected to deliver a harsh blow to the cryptocurrency market as Seoul and the rest of Asia handled a large portion of global crypto trading activities.
Speaking to BBC Radio 4's Today programme, Mr Taylor continued: "I’ve seen various estimates that between 20 and 30 percent bitcoin trading has been through South Korea at some point. Same for Ripple and some of the other key currencies.
Read the report here.
9.42am - Uh oh! Tether dissolves relationship with its auditor
Controversial dollar-pegged cryptocurrency tether has ended its relationship with audit firm Friedman LLP.
Coindesk report that Friedman had been working on an audit of Tether, which has close ties to the cryptocurrency exchange Bitfinex.
Critics of the two companies - and there are many - say that Tether had been printing tokens out of thin air to boost the price of the coins on its exchange.
A statement emailed to Coindesk said:
"We confirm that the relationship with Friedman is dissolved. Given the excruciatingly detailed procedures Friedman was undertaking for the relatively simple balance sheet of Tether, it became clear that an audit would be unattainable in a reasonable time frame.
"As Tether is the first company in the space to undergo this process and pursue this level of transparency, there is no precedent set to guide the process nor any benchmark against which to measure its success."
Tether is currently priced at $.99 with a market cap of $2,242,138,678.
8.55am - Ripple price surge?
Ripple's value could surge today after being added to a “leading” cryptocurrency exchange platform that deals in the Middle East and North Africa as it joins the exclusive club of Bitcoin and Ethereum on the platform.
In a statement, BitOasis said: “We’ve decided to introduce XRP trading to meet the increased demand from our customers to add to the list of major cryptocurrencies and digital assets offered on our platform.
“As one of the largest and fastest-growing companies in the blockchain space in the region, we’re committed to providing our customers with a secure way to buy and sell Bitcoin, Ethereum and now, Ripple.”
Source:
https://www.express.co.uk/finance/city/911770/Bitcoin-price-live-ripple-ethereum-rising-falling-blockchain-regulation-fears
Watch How This Teen Entrepreneur Invested in Bitcoin At Age 12
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Bitcoin Price Rises as First Cryptocurrency Ratings Are Released
Bitcoin’s price limbered up slightly from yesterday but still failed to break the $12,000 barrier. According to Coindesk’s index, a single bitcoin could set you back by $11,222.71, an increase of 3.53% from its price 24 hours ago, at 13:55 UTC.
The mostly sideways movement in bitcoin’s price occurred even after UBS Chairman Axel Weber told Bloomberg at the World Economic Forum that the bank will not offer bitcoin investing services to clients as government regulation of the cryptocurrency might result in a “massive correction” and an implosion in its price.
Gains for other cryptocurrencies outpaced that of bitcoin. Among the top 10 most-traded coins, Stellar’s Lumens was the biggest gainer, rising by 26.13% to trade at $0.57. The cryptocurrency, which shares technology with Ripple’s XRP, might soon be on payments processor Stripe's network.
At 14:09 UTC, the overall market capitalization for cryptocurrencies was $552.7 billion, up from a low of $515.5 billion earlier this morning.
Ratings For Cryptocurrencies
The volatility of cryptocurrency markets has stumped even the best analysts. Now, there are efforts to bring some science and method to the madness.
Florida-based firm Weiss Ratings released a ratings assessment of cryptocurrencies, assigning letter grades to them, today. Bitcoin received a B- grade while Ripple got an A- and NEO, a cryptocurrency that has seen a massive spike in its price this year, was an A+.
Bafflingly, Tron's TRX, which has been criticized heavily in cryptocurrency circles for stealing code and announcing its release without a product in place, received an A++ rating. This rating is especially strange as ethereum, whose smart contract platform is the base layer for Tron's cryptocurrency, is rated only B++. (See also: TRON Falters While NEO Gains.)
In an interview with Marketplace, Martin Weiss, the president of Weiss Ratings, said his firm had used “thousands of data points” and four factors to determine the ratings. The first two are risk and reward indices, which are based on price risk and profit potential.
Then, there is the technology index, presumably an assessment of a coin's underlying blockchain and its future potential. Finally, the firm also uses a “reality test” of the technology’s applications in the real world “to make sure that people are actually using it and it really works,” said Weiss.
Admittedly, that’s a pretty broad set of criteria, and most of it fails to provide clarity. This is especially important as the jury is still out on factors driving price movement in cryptocurrencies. Just yesterday, the Outline published an article detailing a pump-and-dump scheme on a messaging platform. (See also: Fraudulent Trading Drove Bitcoin's Price From $150 To $1,000 In 3 Months.)
Also, the “reality test” of the technology’s applications will take a long time to assess, considering the industry’s nascent nature. And it is unclear how the firm will handle technology prospects for offshoots or forks, which essentially use the same blockchain as their parent currency.
Others in the industry also have questions. “It’s odd that Weiss is touting the fact that they don’t take compensation for their services,” says Jay Blaskey, digital currency specialist at BitIRA, adding that it may not be as applicable for cryptocurrencies as it is for credit rating agencies.
Still, it is a start. According to Blaskey, the ratings are a sign of continued maturation for cryptocurrency markets. “I expect this to be the first of many more systems to come, especially as more and more participants in the financial ecosystem integrate these assets into their business models,” he said.
Diverging Perspectives
Is bitcoin an asset or a payment network?
That question has mystified analysts, investors, and users of the cryptocurrency. It also has an extremely important bearing on factors driving its price movement. Dan Ciotoli from Bespoke Investment Group has predicted a price target of between $20,000 and $30,000 by the end of 2018 for the cryptocurrency.
Diverging Perspectives
Is bitcoin an asset or a payment network?
That question has mystified analysts, investors, and users of the cryptocurrency. It also has an extremely important bearing on factors driving its price movement. Dan Ciotoli from Bespoke Investment Group has predicted a price target of between $20,000 and $30,000 by the end of 2018 for the cryptocurrency.
“The driver that I think is going to bring bitcoin up in 2018 is bitcoin-denominated commerce,” Ciotoli told CNBC, adding that the success of Lightning Network, a second layer to bitcoin’s blockchain to enable commercial transactions, has a big role to play in that assessment. If the network fails, Ciotoli’s price target falls to $5,000. Clearly, he has laid his money on bitcoin’s future as a payment network for daily transactions. (See also: What Is The Bitcoin "Lightning Network"?)
The team at Stripe, a payment processor, may not share Ciotoli's assessment. The San Francisco-based startup, which discontinued support for bitcoin yesterday, identified high transaction fees and price volatility as reasons for its decision.
“Over the past year or two, as block size limits have been reached, bitcoin has evolved to become better-suited to being an asset than being a means of exchange,” Tom Karlo, a product manager at Stripe, wrote in a post. Stripe processes “billions of dollars” in payment processing volume, so they know what they are talking about. (See also: Stripe To End Bitcoin Support.)
Finally, there’s Visa, the world’s largest payment processor. Its CEO Alfred Kelly told CNBC last week that bitcoin’s price volatility made it unfit as a payment mechanism. Instead, he said he viewed the cryptocurrency as a “speculative commodity.”
Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns small amounts of bitcoin.
For More Details About BitCoin Watch This Video:
Ethereum Forecast: Ether Price looks to make gains?
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So you are thinking to get your home equity back? or you want to inherit your home to your children? For details visit;
http://www.beingarealtor.com
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What is Reverse Mortgage and what is truth about reverse mortgage,
For more details visit;
http://www.beingarealtor.com
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How Do You Pay Back a Reverse Mortgage?
Reverse mortgages offer older homeowners a way to tap home equity to meet financial needs in retirement. Borrowers are not required to make monthly payments to repay the loan. Instead, they receive payments, often month to month, that cause the loan balance to increase over time. The loan becomes due when the homeowner dies, moves or sells the home.
Under current lending policy, if your house declines in value, and the balance of the reverse mortgage becomes higher than the home's market value, your children would still be required to repay the full balance if they wanted to keep the home.
But AARP is challenging this policy in a lawsuit it filed against the U.S. Department of Housing and Urban Development on behalf of three plaintiffs. All are surviving spouses of reverse mortgage borrowers and are facing foreclosure on the homes where they live.
AARP says that in 2008 HUD illegally and without notice reversed a special protection for borrowers of reverse mortgages. Up until that time, AARP maintains, HUD rules clearly stated that at the time of repayment, a borrower or heir would never owe more than the home was worth.
HUD has declined to comment on the suit. But in a 2008 letter it stated that the rule in question was never meant to imply that heirs or a surviving spouse who was not a cosigner on the mortgage could pay off the loan just by paying the market value of the house.
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For More Information about Reverse Mortgage visit;
Reverse Mortgage Guide.
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What Is a Reverse Mortgage Loan? And What Are its Advantages and Dis-Advantages?
What is Reverse Mortgage?
As the word ‘reverse’ shows it is totally reverse to the regular mortgage.Under Reverse mortgage loan, initially the borrower retains a high share in his property and receives a regular income.Over the time, when loan amount increases, owner’s share in the property decreases.To learn more about Reverse Mortgage, you have to look know some positive impacts and some negative impacts. Reverse Mortgage is not beneficial in some cases.
Positive Impacts of Reverse Mortgage:
Reverse mortgage loan as retirement tool:
As many people said reverse mortgage has many disadvantages but I am not totally agreed with them.Everything is not for everyone.What I want to said is Benefits of reverse mortgage is varies from person to person, circumstances to circumstances.I recommend those retiree who are 62 or above with house owner to go with reverse mortgage, only if they don’t have any guardian who can support them financially.Because in this stage of life no one is enough strong to do hard work to get money or even not mentally strong.Many people recommend why don’t they rent out their house?All I want to ask them is it safe to rent in this age when there is no guardian.
Negatives Impacts of Reverse Mortgage:Society Pressure – As home is generally seems to be a sacred area. In case you speak about liquidating your primary home, no one thinks this as a good plan especially children. Children see it as giving away their own home and wealth.
Higher costs – Most of the banks charge a higher interest rate on reverse mortgage compared to regular home loan and this time the valuation of the house is also in the banks hand. This time you are not able to get real value (market Value) of your home.
So in some cases it is good idea and in some cases it is not.
All you have to do is think before go with Reverse Mortgage and to consult with a good consultant.
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#Reverse Mortgage#Advantages and Dis-Advantages#Higher costs#Negatives Impacts#Positive Impacts#beingarealtor
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Reverse Mortgage Fees Guideline
Closing Costs
Some of the most significant loan closing costs are typically the Federal Housing Administration (FHA) initial Mortgage Insurance Premium (MIP), loan origination fee, and title insurance. Typically, all closing costs can be financed as part of the loan.
Generally, when you close the loan the only out of pocket fee is the Housing and Urban Development (HUD) required independent counseling. Although it cannot be paid by the reverse mortgage lender, often times the counseling fees can be financed into the loan and sometimes counseling fees can be waived by the counseling agency.
Mortgage Insurance
HECM fees include the Initial FHA Mortgage Insurance Premium paid at closing, which is 2% of the home value not to exceed $13,583, as well as an annual MIP of .5% of the outstanding mortgage balance.
The mortgage insurance provides the following guarantees:
The HECM is a “non-recourse” loan. If you sell the home to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home must be used to repay the debt
If the lender becomes insolvent or otherwise fails to make payments due to the borrower, MIP ensures that the borrower will continue to receive their payments
Loan Origination Fee
The origination fee is the lender’s fee. The maximum fee is set by law according to a formula:
2% of the first $200,000 of the property’s value and 1% of the amount over $200,000
A maximum of a $6,000 origination fee
Title Fees
Title fees are required for all types of mortgages and primarily consist of:
Title insurance (the largest component)
Title settlement
Title examination
Recording
Delivery
Notary
Document preparation
Home Appraisal
The home appraisal determines the market value of the property. A reverse mortgage loan appraisal must be conducted by a FHA-approved appraiser and meet the required guidelines.
Other closing costs
Flood Certificate
Wire Fee
Credit report
Interest
Interest accumulates on a reverse mortgage loan just like on a traditional mortgage. However, instead of paying down the balance, the loan balance increases over time.
Source
Reverse Mortgage Fixed Interest Rates :
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Reverse Mortgage Variable Interest Rates :
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For More Details on Reverse Mortgage like What is Reverse Mortgage and is it Good or Not.
Read this Guide. (Reverse Mortgage Guide) Hope this will helpful to you.
#Reverse Mortgage#Interest_Rates_on_Reverse_Mortgage#Good_idea_or_not#Guideline#myth_behind_reverse_mortgage#Benefits of Reverse Mortgage#Beingarealtor
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Here you have all the detail about reverse mortgages...
#Reverse Mortgage#Good idea or bad#Reverse Mortgage make sense or not#Benefits of Reverse Mortgage#myth_behind_reverse_mortgage#Beingarealtor
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Who Is Eligible for a Reverse Mortgage?
How does a reverse loan work in terms of eligibility? Properly, that depends on the following factors:
Age: Minimum age requirement is 62 qualify for a reverse mortgage.
Equity in home: You need to either own your home outright or have paid down the majority of the current debt on the property.
Residency: The home you plan to borrow against have to be your main residence.
Financial resources: Remember that even after you take out a reverse mortgage, you will still own the property.
Therefore, you will continue to be responsible for meeting the ongoing expenses associated with home ownership, such as property taxes and insurance premiums. So one can protect the property that is being used to secure the loan, the lender will want to set up your ability to fulfill those duties.
No federal debt problems. In case you are delinquent on any shape of federal authority’s debt, including taxes, you will no longer be eligible for a reverse mortgage.
Type of property: To be eligible for a reverse mortgage, the assets you must borrow towards should be a single-family home, a 2 to 4-unit home with one unit serving as your main residence, a HUD-approved condominium, or a manufactured home that meets FHA lending requirements.
Similarly to meet those eligibility requirements, you need to take part in a session of information given by a HUD-approved housing counselor, to make sure you have enough understanding know-how of ways a reverse loan works that allows you to make this decision responsibly.
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#Reverse Mortgage#Who Is Eligible for a Reverse Mortgage?#How do i qualify for Reverse Mortgage#Reverse Mortgage Requirements#loan#Beingarealtor
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