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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...

 

Reverse Home Mortgage Information

Being more of a loan advance, reverse home mortgage has been specially designed in order to turn the equity of the home into tax free cash. Therefore, there has to be kept in mind that the borrower does not repay the reverse home mortgage for as long as he/she continues to live in his/her house. Becoming eligible for a reverse home mortgage requires applicants to be 62 years old or older and to have some kind of equity. The home that is being mortgaged should serve as the borrower's primary residence. Houses eligible for reverse home mortgage are, mainly, single unit, condo, or townhouse, as this aspect basically depends on the mortgage lenders you are choosing to work with.

An important aspect which has to be taken into consideration is being represented by the fact that reverse home mortgage differs from home equity loan, as it practically pays the borrower under the form of a lump sum, regular periodic payment, line of credit, or as a combination of these aspects. Also, there has to be kept in mind that the borrower is being allowed to choose how and when to get payment, by opting for receiving the money under the form of a line of credit. A reverse home mortgage has to be repaid only in case the borrower permanently moves, dies, or sells. For as long as the borrower lives in the house, meaning for the whole duration of the reverse home mortgage, the home equity decreases as the debt increases. At the end of the reverse home mortgage period, the mortgage lenders use the home to repay the loan. Principal, interest, and closing costs of reverse home mortgage are being paid off by the borrower's home. If any money remains after these payments, they are being given to the borrower.

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