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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...

 

Questions To Ask When Comparing Reverse Mortgage Firms

The average American would think of retirement as a moment in his life when he could do anything that he or she wants. Different reverse mortgage lenders have different terms as to reverse mortgages. Before transacting with any of the reverse mortgage lenders, make sure that you do 'badly' need the money. Reverse mortgage could be a blessing or a curse to any senior and it would all depend on how he manages the proceeds that he gets out of the property.

Although there are a handful of reverse mortgage lenders that present great offers to the elderly, in a recent statistics made by the National Council on the Aging, it showed that only 100,000 family units have taken advantage of the benefits of reverse mortgage since 1989. Here are very important questions to ask these reverse mortgage lenders if you really need to cash in your home. Since this is mortgage for seniors, the first thing to ask is what benefits would be affected by the loan and obvious answers are Medicaid, Medi-cal and SSI (Supplemental Social Security Income).

Ask the reverse mortgage lenders how you could be able to declare your reverse mortgage as mortgage and not income. An important question is, will the reverse mortgage lenders need to sell the house before he dies to pay for the loan? Remember that during turbulent moments in a senior's life, such as being in a hospital and paying for medical expenses, this would be a real nuisance. Inquire from these reverse mortgage lenders what obligations you would still have with your home. Who will be shouldering the home maintenance, insurance and even the property taxes? Most reverse mortgage lenders give these obligations to the borrower, there are others who might offer to shoulder them but weigh the circumstances and opt for the better choice.

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