Brittney Parks
Basic PLUS Level Expert Author
Joined EzineArticles on Oct 19, 2011 What Is a Reverse Mortgage? What Seniors Should and Should Not Expect From These Loans
Finance: Loans • Published: April 29, 2012
According to researchers at the Center for Retirement Research at Boston College, in upcoming years, reverse mortgages will be an important tool used by baby boomers to help them afford expenses during retirement. The continued popularity of these loans leaves many seniors asking, "What is a reverse mortgage, and what can it do for me?"
Reverse Mortgage Defaults: Do These Loans Carry a Higher Risk?
Finance: Loans • Published: April 29, 2012
According to statistics compiled by the National Reverse Mortgage Lenders Association, between 10,000 and 15,000 Home Equity Conversion Mortgages (HECMs) are currently in technical default. Some lenders have even foreclosed on seniors who could not arrange a payment plan or otherwise get their loan of out default.
Reverse Mortgage Information: Choosing a Payment Option
Finance: Home Equity Loans • Published: April 29, 2012
Seniors seeking reverse mortgage information will quickly notice that these loans are highly flexible. Not only do seniors get to choose from different loan products and interest rates, but they also get to choose a payment option. Currently, Home Equity Conversion Mortgages (HECMs) offer three primary payout options. Seniors may choose to receive their loan proceeds in one upfront sum, in monthly installments or as a line of credit.
Should Seniors Take Advantage of Today's Low Reverse Mortgage Rates?
Finance: Loans • Published: April 29, 2012
On a forward mortgage loan, a borrower's interest rate will impact the size of his or her monthly payment. Since reverse mortgages do not make monthly payments to their lenders, interest rates may seem unimportant. Reverse mortgage rates, however, actually do play a very important role in the loan process. As with any type of loan, the interest rate determines how much interest will accumulate over the life of the reverse mortgage. The lower the borrower's interest rate, the less he or she will owe once it comes time to repay the loan.
What Is a Reverse Mortgage? Important Facts for Seniors
Real Estate: Mortgage Refinance • Published: April 29, 2012
A reverse mortgage is a financial tool that gives senior homeowners the ability to cash in on their home equity. With a reverse mortgage, seniors borrow a portion of their equity, which they repay once they sell their home, stop living in the residence or pass away. To get a reverse mortgage, lenders require that borrowers are at least 62 years of age and own their home outright or have a small remaining mortgage balance. Essentially, these loans are designed to provide seniors with a way to eliminate their mortgage payments and add to their retirement income.
Who Should Consider a Reverse Mortgage?
Real Estate: Mortgage Refinance • Published: April 29, 2012
According to the National Reverse Mortgage Lenders Association's Reverse Mortgage Market Index report, seniors have approximately $3.19 trillion invested in their homes. Yet a poll conducted by the Associated Press and Life Goes Strong found that 89% of the 77 million "baby boomers" polled did not believe that they had saved enough for retirement. This disconnect leaves many retirees looking for ways to use their home equity to make up for their limited savings. In many cases, this is what leads seniors to reverse mortgages.
Reverse Mortgage Fees and Costs: What Seniors Need to Know
Finance: Loans • Published: February 27, 2012
Just like conventional mortgage loans, there are certain reverse mortgage fees that borrowers will be required to pay in order to obtain a loan. To make these fees more affordable, all costs can be financed into the reverse mortgage. While critics often complain that reverse mortgage costs are unusually high, most fees are the same as those required to obtain a forward mortgage loan.
Reverse Mortgage Information: Selling the Home After a Reverse Mortgage
Finance: Loans • Published: January 18, 2012
Before getting a reverse mortgage, seniors should take advantage of all the reverse mortgage information available to them. One subject commonly missed by seniors seeking reverse mortgage information is the topic of repayment. While it is true that seniors can defer repayment until they die or sell their home, a reverse mortgage will eventually become due. When this time comes, both borrowers and their heirs should know how to handle this important step in the loan process.
The Importance of Choosing the Right Reverse Mortgage Lender
Finance: Loans • Published: November 9, 2011
According to a recent survey conducted by Harris Interactive, 40% of homeowners do not compare different lenders when obtaining a home loan. From this information, it is safe to assume that these consumers are also dropping the ball when it comes to searching for reverse mortgage lenders.
Important Reverse Mortgage News for Potential Borrowers
Finance: Home Equity Loans • Published: November 8, 2011
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. However, reverse mortgages, specifically federally-insured Home Equity Conversion Mortgage loans (HECMs), might be subject to a few important changes.
What Is a Reverse Mortgage?
Finance: Home Equity Loans • Published: November 8, 2011
In the past ten years, reverse mortgage loans have hugely increased in popularity. In 2009, which was the biggest year for the reverse mortgage, 114,692 loans were used by consumers. This remarkable increase in popularity has many consumers wondering what is a reverse mortgage?
Understanding Reverse Mortgage Rates
Finance: Home Equity Loans • Published: November 8, 2011
While most consumers understand how interest rates impact traditional mortgage loans, many fail to understand the importance of reverse mortgage rates. As with other mortgage loans, reverse mortgages are given either fixed or variable interest rates. These rates are important for several different reasons.
Reverse Mortgage Information and Current Trends
Finance: Home Equity Loans • Published: October 26, 2011
While the first reverse mortgage was granted in 1961, Home Equity Conversion Mortgage (HECM) loans have only been available since 1989. Since that time, over 660,000 HECM loans have been given to consumers, 74% of which were funded in the past five years.
Reverse Mortgage Information: Are Reverse Mortgages in Danger?
Finance: Loans • Published: October 26, 2011
In February 2011, Bank of America made the decision to stop offering reverse mortgages to their borrowers. A few months later, Wells Fargo and SunTrust followed suit. These lenders made their decision after reverse mortgages failed to bring in profits comparable to other loan products.
Reverse Mortgage Information: Understanding the Different Types of Reverse Mortgages
Real Estate: Mortgage Refinance • Published: October 26, 2011
Many consumers are under the impression that there is only one type of reverse mortgage. A reverse mortgage is a loan that allows consumers, ages 62 and older, to withdraw a portion of their equity. While all reverse mortgages work similarly, there are three different types of these loans: single-purpose, private, and government-funded.
Reverse Mortgage Information Potential Borrowers Must Know
Real Estate: Mortgage Refinance • Published: October 25, 2011
A reverse mortgage is a unique type of loan that actually pays the borrower. These loans allow borrowers to access a portion of the equity in their home, which they will receive as a lump sum, in installments, or as a line of credit. Unlike other loan types, a reverse mortgage will not become due on a specific day.






