Robert Jackme Blog

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. Source:

Some advocates and lenders have warned of a coming foreclosure crisis in Puerto Rico, but one top lender on the island says reverse mortgage borrowers rode out the recent storm much more easily than their forward counterparts. Puerto Ricans are still cleaning up in the wake of Hurricane Maria, which made landfall on the U.S. territory as a Category 4 storm last fall. In response to the devastation, the Department of Housing and Urban Development instituted a moratorium on foreclosures through March 19 for all forward and reverse loans — and as the deadline approaches, some have sounded the alarm about the potential impact on homeowners. “When I speak with my family in Puerto Rico, I hear the desperation in their voices,” New Jersey resident Maribel Soto told NJ.com last week. ”They don’t know when they will find employment again and when they will have stability in their lives. It’s unjust that companies are taking advantage of people at such a moment.” While forward mortgage borrow...

If you’re considering a reverse mortgage, shop around. Decide which type of reverse mortgage might be right for you. That might depend on what you want to do with the money. Compare the options, terms, and fees from various lenders. Learn as much as you can about reverse mortgages before you talk to a counselor or lender . And ask lots of questions to make sure a reverse mortgage could work for you – and that you’re getting the right kind for you. Here are some things to consider: Do you want a reverse mortgage to pay for home repairs or property taxes? If so, find out if you qualify for any low-cost single purpose loans in your area. Staff at your local Area Agency on Aging may know about the programs in your area. Find the nearest agency on aging at eldercare.gov, or call 1-800-677-1116. Ask about “loan or grant programs for home repairs or improvements,” or “property tax deferral” or “property tax postponement” programs, and how to apply. Do you live in a higher-valued home?...

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 dra...

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 proc...

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 ...

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 con...

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 ...

Who is a good candidate for a reverse mortgage? If you have your own home and don’t have enough savings for your daily based expenses or expenses for your life style, a reverse mortgage has a few advantages. 1/3 of U.S.  http://www.beingarealtor.com Families don't have enough savings for retirement and the average amount saved among the remaining 2/3 was $73,200.  That would get you through some years of retirement; however it’s not enough to last through a long retirement. A reverse mortgage can ease the pressure on you of your monthly expenses. Most senior citizens live on fixed earnings; it can supplement Social Security and help handle with the inevitable mounting medical prices. Who isn't a good candidate for a Reverse Mortgage? A reverse mortgage is a questionable proposition if you have sufficient income to pay your bills or are willing to sell your home to tap into the equity.  If that’s the case, it may make greater feel to simply sell it and d...

For some people, yes. They have asked pertinent questions like: Do I want to maximize what I can leave to my heirs? Am I going to live in my home deep into my retirement? How much extra income will I need to meet my needs? Can I pay the taxes, insurance and meet all the obligations that come with a reverse mortgage? Unlike all those people who’ve been foreclosed on, do I really know what I’m getting into? If the answers to those questions are sketchy, you should consider a safer financial route like a traditional home equity loan or line of credit. Whatever the decision, seek personalized advice from a financial counselor or debt-management agency. Tom Selleck might say reverse mortgages are not too good to be true. But Magnum P.I. showed that it always pays to investigate

The booming senior population – and some advertising spots by actor Tom Selleck – are part of the reason reverse mortgages are popular again. When Selleck talks, people listen. Lately, the star of “Blue Bloods” and “Magnum P.I.” has been talking about reverse mortgages. Don’t worry, he says in a commercial. Reverse mortgages can be an answer to your financial prayers. “It’s not another way for banks to get your house,” Selleck says. “And it’s also not too good to be true.” That’s easy to say when you have an estimated worth of $45 million like Selleck, but thousands of Americans who aren’t TV stars have different ideas. The industry is steeped in promises, controversy and cautionary tales. If you’re considering getting a reverse mortgage, the best way to ensure a happy story is to educate yourself. Business is booming at places like American Advisor Group, or AAG. The company that Selleck endorses has seen its revenue triple from $63 million in 2012 to $216 milli...

A reverse mortgage is a type of home loan that lets you convert a portion of the equity in your house into cash. With regular mortgages, borrowers make monthly payments to pay down the debt. With reverse mortgages, lenders pay borrowers and the debt increases over time. The loan isn’t settled until the borrower sells their home, moves out or dies. The loan is then repaid or the home is sold to pay off the debt. Owners must pay the property taxes and insurance costs and keep the house in good condition when they agree to a reverse mortgage. If they don’t – and many have fallen into that trap – the lender can foreclose. Most reverse mortgages are insured by the Federal Housing Administration under a program known as the Home Equity Conversion Mortgage, or HECM. The first reverse mortgage was written 1961 when Deering Savings & Loan in Portland, Maine, designed one to help a widow stay in her home after her husband’s death. The program really took off in 1988 when Congres...

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 t...

Many of the senior citizen in United States tend to go for reverse mortgage, according to the latest reports on reverse mortgage, it is concluded that reverse mortgage has become popular among people. About 90 percent of people aged below 60 years and above 55 years tend to get more information regarding this topic of reverse mortgage, and some similar situation is among the seniors aged over 62 years. It has been said in the reports that more and more people are going for reverse mortgage, and this aspect has taken a great boost in last seven years with majority has taken this initiative. This shows that people want to get more and more in order to fulfill their desires after their retirements. Reasons behind this behavior: - Seniors want to secure their future as much. They want to relish their remainder life with cash. They want to cash their houses. They believe in FHA. Seniors go for this to fulfill their medical requirements. Securing future:-...