What is a Reverse Mortgage?

Simply stated, a reverse mortgage is a loan that enables homeowners (age 62 and older) to convert part of the equity in their home into a tax-free income without having to sell the home, give up the title, or take on a new monthly mortgage payment. More and more homeowners are using this to supplement their retirement income, pay for health care, modify their home, or just get some cash for emergencies. Since this is a new product, some people have misconceptions of what a reverse mortgage is. The bank doesn't give you money and take your house. Let's look at some of the most common questions.

Are reverse mortgages for desperate people? No. It is an excellent financial planning tool used from people of all walks of life.

How do I qualify? You must be 62 or if both parties are on the mortgage, then you both must be at least 62. And, you must have equity in your home.

What if I still owe on my home? You may still qualify even if you have a balance on your first mortgage. The proceeds must be used to pay off the mortgage, first.

How much can I get? This depends on several factors such as, the age of your home, the value, your age at the time of closing, and interest rates.

Is it just monthly payments? No. You can get a lump sum, line of credit, monthly payments or a combination of monthly income and a line of credit.

But, won't I have to pay taxes on these monthly payments to the government? No. The funds are tax-free. Its your money, not additional income.

Should I seek a lawyer or receive some counseling before I get a reverse mortgage. Yes. You must be counseled before receiving a reverse mortgage. You don't have to talk to a lawyer or accountant, but it would be advised.

Who owns the title to my house? You still own the title.

What happens when I die? Once your home is passed on to your heirs, the mortgage becomes due. Your heirs may pay the mortgage and keep the home or sell the home and pay off the home. They may keep any excess sales proceeds.

What if I owe more than the house is worth? You can't. Your repayment amount will never exceed the value of the home at the time the loan comes due. Also, there are no prepayment penalties.

What if I move? If you move, then the mortgage becomes due and must be repaid.

Where can I learn more? The National Reverse Mortgage Lenders Association at http://www.reversemortgage.org

Stuart Simpson has a neat mortgage calculator FREE to use. Try it out at: http://www.mortgage-refinance-review. com/calculator.php

---

What is a Current Account Mortgage?

Current account mortgages are fairly new to the sector. They are quite different to other types of mortgage as they enable you to set off all your... Read More

Home Loans

Buying a home remains the great American dream. Home ownership rates have been exploding in recent years, spurred on by the historically low interest rates in the... Read More

Refinancing Your Home Mortgage Loan

You're considering refinancing your home mortgage loan to save money. Interest rates are the lowest they have been in decades. But, you're asking yourself, "Is refinancing worth... Read More

Mortgage Research Good News for House Buyers

Figures from the Council of Mortgage Lenders show that in July gross lending in totalled £25.2 billion, with fixed rate deal mortgages are at their most popular... Read More

Debt Counseling ? Healing Touch for the Ailing Finances

The financial stories remain similar over the months and the years. With debts becoming a nuisance, people make resolutions and resolve to stand by these resolutions. But,... Read More

Secured Loans For Home Improvement ? When You Can?t Buy A Luxury Home

A house is just perfect with chipped walls and broken taps. Is it? If you don't think so, then home improvement loans is what you should be... Read More

Online Mortgage Loan Companies Are Convenient

There are many reasons to use the internet to take care of your mortgage loan needs. Online mortgage companies can give you quick answers to your mortgage... Read More

Home Equity Loans

A home equity loan allows you to cash-in on the equity you have built-up in your home. The funds you receive can be used for debt consolidation,... Read More

The Real Truth About Those: Online Get a Better Loan Web Sites - 6 Things to Look For

You have seen the Commercials on TV go this or that web Site and Refinance your Home and Save thousands. Tempting isn't it? Do they really save... Read More

HELOCs and Second Mortgages: Which One Should I Choose?

Whether you need some extra cash to pay off some credit card debts, or to make some home improvements, home equity lines of credit or second mortgages... Read More

Zero Down Mortgage Loans - Is 100% Financing a Good Idea and Can You Get Approved?

Are you wondering if you can get approved for a home loan with 100% financing? Are you also wondering if its a good idea to get a... Read More

Gearing Up for Bad Credit Mortgages

Mortgage would have never happened, had mortgages been a no profit venture for the mortgagees or the mortgage providers. The lender receives much more than he had... Read More

Lesser Known Facts About Home Equity Loans

Refinancing your debt via a home equity loan shifts your debts loan to your home. The flip side to such a move is that your home is... Read More

Are You Ready for a Home Mortgage Loan?

Buying a Home and committing to a Mortgage can be very scary! A home mortgage loan is the largest debt that most Americans will take on in... Read More

How To Get a Mortgage If Youre Self-Employed

If you are self-employed, work on a contract basis, or have an income that is irregular or comes from multiple sources, it will generally be harder for... Read More

Mortgage Soup

Looking for home mortgage loans can get confusing with the alphabet soup of mortgage loans programs available today. Most of these programs are just variations of fixed... Read More

Bridging Loan Basics

A Bridging Loan is a short-term loan used as a way to provide funding for the purchase of a new property while the borrower awaits the sale... Read More

Need a Mortgage, Refinance or Equity Loan? Learn What it Takes, Before Applying

Do you know what it takes to qualify for mortgage and refinance loans? There are several factors involved with qualifying for a purchase, refinance or equity line... Read More

Home Loans and Mortgages ? The Myth of Tax Deductible Interest

Home ownership has risen sharply in recent years, and the percentage of Americans who own their own homes is approaching a record seventy percent. That's a good... Read More

An Infinity Mortgage?

Here in Spain the concept of a mortgage period of 20 or 25 years is something new. The general feeling by the banks is that want their... Read More

Seniors Can Use a Reverse Mortgage to Fund Annuities, Investments, and Insurance Policies

For many seniors in or entering retirement, the prospect of purchasing long-term care, investments or annuities can be cut short by a lack of retirement income. Statistics... Read More

Looking for a Bad Credit Home Improvement Loan

To make needed repairs to your home without the advantage of a good credit history often requires a bad credit home improvement loan.This loan, designed for people... Read More

Understand a Real Estate Appraisal

Happy New Year. Make a difference this year. "Pay it forward" as in the movie. If you haven't seen it, WOW, do.If you buy a house or... Read More

Home Mortgage Loan Refinance ? Benefits To Refinancing Your House Online

Here are some of the benefits to doing your home loan refinance online:Everything seems to happen faster - Online, when looking for a mortgage loan you can... Read More

Guide to Home Equity Loans

Here is a useful guide to home equity loans. A home equity loan is quite simply a loan against your house. Another term for a home equity... Read More

New Home Loan - Understand The Various Types Of Mortgage Lenders

So, you've decided to buy a house, and you're ready for that all important next step-applying for a mortgage loan. But where should you go? After all,... Read More