Robert Jackme Blog

You probably want reverse mortgages explained in a clear straightforward way.  The loans can seem incredibly confusing and many retirees have had slightly negative views about them. However, popular opinion is swinging and reverse mortgages may turn out to be the red wine of financial products — something once considered bad that is now thought to be very beneficial. Not too long ago, people thought that drinking wine was an unhealthy habit. Research now shows that red wine, consumed in moderation, can have huge health benefits for many — though not all — people. Reverse mortgages are similar. They were once considered to be a bad deal for borrowers, but recent updates to regulations have made reverse mortgages a really compelling way to help retirees pay for retirement and safeguard retirement assets. A reverse mortgage is a loan that lets the borrower access home equity to spend in any way they want.  While it is a loan, there are no monthly payments, so it can dramatically

A reverse mortgage application procedure typically takes about 30-45 days from begin to end and it contains 5 main steps. But, the longest a part of the  reverse mortgage loan process  is the decision-making method that leads on the application.The average reverse mortgage applicant starts considering thinking about a reverse mortgage six months earlier than completing an application. The average reverse mortgage applicant starts considering thinking about a reverse mortgage six months earlier than completing an application.The home owner usually researches reverse mortgages with this site for a several months. They request facts from a local reverse mortgage professional. The house owner might also invest one to two months meeting with the professional in individual and reviewing the best faith estimate and different loan documents. “Calculate Your Eligibility” STEP 1: INITIAL APPLICATION The application legally authorizes the lender to start the application process but b

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

A reverse mortgage works like a home equity loan, but the homeowner doesn’t need to pay off the mortgage in monthly bases.  It allows house owners to remain stay in their home however taking the equity out of their house without making any payment to the lender.  Most of the time, they can both take out a lump sum or the lender will make payments to them every month.  As long as the homeowner continues to apply their home as their main residence and they meet all requirements of a reverse mortgage , they don't need to pay the lender returned. How does a reverse loan work for the house owner?  Read the given example. Mike is a 75 years old male. He's the only owner and resident of a house that was recently appraised for $300,000 in Vienna, Virginia. He owns the house outright; because of this he does no longer currently have a mortgage or line of credit of any kind.  According to this information, Mike can get a lump sum price of $172,674 consistent with a r

The FBI and the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) urge clients, in particular senior citizens, to be vigilant when seeking reverse mortgage products. Reverse mortgages, additionally called home equity conversion mortgages (HECM), have expanded more than 1,300% among 1999 and 2008, creating huge possibilities for fraud perpetrators. Reverse mortgage scams are engineered by using unscrupulous specialists in a mess of real estate, financial services, and related agencies to steal the equity from the property of unsuspecting senior citizens or to apply these seniors to unwittingly aid the fraudsters in stealing equity from a flipped property. In some of the mentioned scams, victim seniors are provided free homes, investment opportunities, and foreclosure or refinance help. They're extensively utilized as straw shoppers in property flipping scams. Seniors are often centered via local churches and investment seminars, in addition