By Grant W. Martin
The popularity of the reverse mortgage in a given area depends upon the presence of a sizable senior population and a concentration of relatively valuable real estate. San Diego has both, and is an example of broader demographic shifts as revealed in the 2010 census.
The census showed that citizens age 65 and over constitute 13.4% of the U.S. population, a record high. This growth of the senior portion of the population is being called the largest demographic shift in history. Over the past decade, the senior population grew 15.1% nationwide, but grew 23.5% in the West, meaning that region is leading the demographic shift. California already is the state with the largest number of senior residents, with 4.2 million, followed by Florida with 3.3 million, New York and Texas each with 2.6 million, and Pennsylvania with 2 million. Read More…
By Christopher Beard
Seniors seem to be gaining clarity of the purpose for a reverse mortgage with over 72,000 FHA Home Equity Conversion Mortgage loan units completed in 2010 and close to that for 2011 expected, which is low compared to 2006-2009 when the industry peaked. Industry wide changes are on the horizon for senior homeowners who want to take out a reverse loan in the coming year though here are a few of the changes that can be expected in the coming year. Here are a few changes to expect: Read More…
By Chris Beard
The reverse mortgage is a kind of home loan that is rather unique. It allows the borrower to convert part of his home equity to cash. This means that you can actually be paid the equity you have accumulated on your home mortgage. This article looks at how a reverse mortgage may or may not affect eligibility for Medicare and Medicaid benefits.
Taking out a reverse loan will not result in immediate disqualification for Medicare and Medicaid In fact regardless of the mortgage loan amount or timing of the loan. Medicare would not be affected because it is a Medical Insurance privilege program for seniors over 65. Your eligibility for Medicare begins at 65 as long as you or your spouse worked 10 years or more at a Medicare sponsored employer and have citizenship.
Medicaid is slightly different as it is a program sponsored by the government. Its aim is to offer health care to individuals with limited incomes. Eligibility is determined by review of the applicant’s, income and assets using a means test. Income guidelines can vary from state to state. According to Department of US Health and Human Services Medicaid eligibility requires applicants to have no more than $2,000 ($3,000 for a couple) in countable assets one day out of the month. Read More…
For many years, the reverse mortgage industry has been shrouded over cloud with many greedy lenders taking advantages of the gullible elderly persons. In other words, for long, reverse mortgage was relegated to the backseat. In recent times, however, the reverse mortgage industry has received a facelift with various renowned lending institutions entering into this field. Currently, by law, the lenders are required to offer counseling session to you, the elderly person, about the benefits and drawbacks of reverse mortgages, before offering you a reverse mortgage. Read More…
By Juhani Tontti
The myths are like gossips, which start from somewhere and live their own lives. Usually they sound like facts and are easy to understand. Unfortunately they cause a lot of trouble. This article presents some of most popular myths about reverse mortgages and the true facts.
1. Reverse Mortgage Lender Can Take the Home Of The Senior.
This is a total lie. A borrower, or borrowers, will stays as owners of the home, but they have to take care of their responsibilities. A most important duty is to pay the property insurance and taxes. If he or she will leave these unpaid, the lender has the right to either take the sums from the payments to the senior, or to take the home and sell it to get the needed money. Read More…
By Lisa Marie Andrews
Perhaps you want some extra cash, but don’t want to pull out a loan, there are many things you can do. You could get a part time job for some extra money, have a garage sale, or get a reverse mortgage. Just about everyone has heard about a mortgage, but there are many people who haven’t heard about a reverse mortgage. So, what is a reverse mortgage? Who qualifies for one? Why should you get one? Read More…
By Curtis L Horn
1. The Home Appraisal Value – One of the first things that reverse mortgage lenders will check before you can be approved for this type of loan is the home appraisal value. This value shows what your home is currently worth, and this must be determined before a loan amount can even be calculated. The more your home is worth the higher the loan amount may be, and the easier it may be for you to qualify for this type of loan.
2. The Amount of Equity in The Home – The amount of equity that you have in your home is another fact that is checked and verified before you can be approved for a reverse mortgage. Your equity is the amount that you have in the home, and this is essential to any reverse mortgage. If your home is worth $100,000 but your equity is only $25,000 then this will greatly impact the amount you may qualify for. Read More…
By Brittney Parks
Reverse mortgages are a popular way for seniors to pay off their home loan, reduce debt, and supplement their income during retirement. The eligibility requirements for these loans are fairly simple. Borrowers must be at least 62 years of age, own an approved property, and have a substantial amount of equity in their home. Consumers who meet these requirements are usually able to use a maximum claim amount of $625,500 in order to convert their home’s equity into usable funds. However, reverse mortgages, specifically federally-insured Home Equity Conversion Mortgage loans (HECMs), might be subject to a few important changes.
Recent and Future Changes to the Reverse Mortgage Read More…
By Juhani Tontti
It is generally known, that the HUD reverse mortgages claim in their terms, that the borrower has never to use his or her other assets to pay back the reverse loan. That the home selling price and the reverse mortgage insurance will cover the whole loan amount, always.
However, there are three widows of the borrowers, who were forced to do this. With the heavily decreased home prices this is a tough job. So to prevent the foreclosure these three widows decided to sue HUD, The Department Of Housing And Urban Development. What happened? Read More…
Reverse Mortgage is a variety of mortgage that mainly focuses on the senior citizens. It is specifically designed in order to address the financial and loaning needs of these old individuals particularly in the United States of America. It is separated from other types of mortgages due to its unique interest feature wherein the debtor (senior individual) will not pay the interest to the creditor, which may either be a bank or a lending firm. Instead, the interest will be accumulated as a whole and will then constitute a lien on the property of the debtor that is the subject of the mortgage.
Read More…
