Welcome to Mortgage Guide
Mortgage Net Branch Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Is A Reverse Mortgage Right For You?
from:A reverse mortgage is the exact opposite of a traditional mortgage. Instead of you paying the bank to live in the house, the bank pays you to live in it. This may seem a bad deal for the bank, but there are a lot of reasons why a bank will allow a reverse mortgage. Typically a reverse mortgage is only approved for someone 62 or more years of age that has paid off his or her original mortgage. With all that equity in the home, the senior sitting in it might want to stay in the home but face additional expenses in medical or living costs that they can’t cover. Instead of selling the home and downsizing, they may choose to do a reverse mortgage with a bank instead thus allowing them to remain in the home.
How It Works
The reverse mortgage is a little more complex to close than a traditional mortgage. There are a number of different rules surrounding this type of mortgage loan. The age limit is one barrier and also the condition of the home may be another. The home has to be in good condition, free of major faults, before the bank considers doing this type of mortgage. Closing costs are significantly higher than the traditional loans and fees can also eat into equity. However, the upside is that you can get a disbursement of cash to help you pay immediate expenses while not having to vacate your home. This cash can come as a lump sum, a monthly payment, or even a credit line. The terms of the loan may differ with the bank involved and you should check to see what happens if you eventually sell the home instead of staying in it until you die.
The Potential Negatives
Seniors are targeted by unscrupulous lenders with predatory lending practices that can include a high fee reverse mortgage. Most lenders will be asked to undergo counseling before they take out a reverse mortgage, but that might not be enough to assess whether the mortgage is what you need at this point in your life. As always, if you aren’t certain of what you are signing, don’t sign. Instead, try to review the documents with someone who is knowledgeable and can answer any questions you might have about this type of mortgage. There are some downsides to a reverse mortgage. They can impact your ability to receive Medicaid benefits and government financial assistance. So, be sure to not only look at the terms of the mortgage but also check with your local government offices to see if the mortgage product might actually reduce your income instead of increasing it, due to the offset of benefits.
Mortgage Net Branch News
More CPM leaders falling into SIT net - IBNLive.com
More CPM leaders falling into SIT net IBNLive.com KOZHIKODE: The number of CPM leaders arrested in the TP Chandrasekharan murder case has risen to six, including KC Ramachandran, Padayankandi Raveendran, former secretary of the Kunnothuparambu branch, Vadakkayil Manoj and Jyothi Babu, ... |
AM Best Affirms Ratings of Aflac Incorporated and Its Subsidiaries - Insurance News Net (press release)
AM Best Affirms Ratings of Aflac Incorporated and Its Subsidiaries Insurance News Net (press release) ... roughly three-quarters of its sales and premiums are generated by its Japanese branch. In addition to improved profitability, Aflac's net flows improved considerably in 2011, driven by a combination of sales growth and higher retention rates. |
CRDB Bank Extends Wings Beyond Borders - AllAfrica.com
CRDB Bank Extends Wings Beyond Borders AllAfrica.com By Abduel Elinaza, 25 May 2012 CRDB bank is set to open a branch in Bujumbura, the capital city of Burundi, next July amid expectations of posting a pre-tax profit of 100bn/-. The bank has attributed the projection to good results achieved in this ... |
Independence police investigating apparent stabbing - Blue Springs Examiner
Independence police investigating apparent stabbing Blue Springs Examiner By Jeff Martin - jeff.martin@examiner.net An employee at Kansas City Public Library, Trails West Branch, on 23rd Street, said a woman drove up into the parking lot and told someone that her boyfriend had been stabbed and she was taking him to the ... |
5 Low P/E Stock Picks By Andreas Halvorsen - Seeking Alpha
5 Low P/E Stock Picks By Andreas Halvorsen Seeking Alpha Assured Guaranty is a holding company based in Bermuda that provides credit enhancement products to the municipal finance, structured finance and mortgage markets. Assured refrained from insuring the most dangerous bonds related to the housing boom. |