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MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

Facts About Reverse Mortgages

We all know what a mortgage is but we might not know what a reverse mortgage means. A mortgage is about taking a loan from someone (a bank or a lender) for buying a home and then paying back that money in a monthly rate. A reverse mortgage is applicable to people that are older than sixty-two. Such a process refers to the fact that a bank can give money to that homeowner that is over 62 and expects him to give it back if he sells his house, if he moves or if he dies. Reverse mortgage is about getting a part of the home equity. It is more like a loan advance.

You might ask yourself what the reverse mortgage is used for by the elders. Well, they can use them for anything, starting from vacations, home renovation and ending with supplementing a retirement fund, or avoiding foreclosures.

People can chose from a lot of different reverse mortgage types like the Financial Freedom Cash Account, CHIP Reverse Mortgage for Seniors, Home Equity Conversion Mortgage, and even Fannie Mae Home Keeper. Before choosing one type of reverse mortgage you should go for an expert counseling. The counselor will be able to answer all your questions about any reverse mortgage and might help you choose the most suitable reverse mortgage for you.

You can also choose the way you will receive your reverse mortgage money. Some want to receive them monthly, some choose a lump sum. It is all up to your needs. You can only receive the amount of money that equals your property's value. In order to be accepted for the reverse mortgage your property must be one of the following: mobile home, single family residence, principal residence, one to four units, or FHA condominiums.

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