Reverse Mortgage Providing Peace of Mind Without Sacrificing Safety or Security
For many seniors one of their greatest sources of security is their home. It not only provides a comfortable and familiar environment, but it provides a sense of independence and a source of many fond memories. The equity in that home represents a financial nest egg and a legacy for them to pass on to their family. With the ever-increasing cost of maintaining a home, along with the overall rise in the cost of healthcare, finding the resources to live out ones life at home is becoming a growing challenge. What is a Reverse Mortgage? A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), is a government insured loan program that allows senior homeowners, age 62 and older, to convert the equity in their home into usable cash.
Unlike a conventional mortgage however, qualification is not based on credit, employment, income, or assets, and there are no monthly payments. The homeowner never forfeits title, and as long as they pay the property taxes and homeowners insurance, no repayment is required until the senior no longer occupies the home due to their sale of the property or their passing.Are Reverse Mortgages Safe? Absolutely! Reverse Mortgages are FHA insured or backed by Fannie Mae. And as long as you continue to live in the house as your primary residence, keep the real-estate taxes and insurance(s) current, and comply with the terms of the loan, you do not have to repay the loan.For an increasing number of seniors, age 62 or older, a reverse mortgage has provided great peace of mind. They are provided the tax-free cash to meet these financial demands without giving up title to their home. They have no monthly payment or deadline as to when they must move or pay off the loan.
Although the program is viewed by seniors as a possible solution to there financial needs, they are concerned about putting themselves, their home or their family at risk. Following are a few of the safeguards that HUD and Fannie Mae have provided:1.Loan amounts, interest rates, and loan terms are set by HUD and Fannie Mae and can never vary from one lender to another.2.HUD and Fannie Mae have established what fees can be charged and has set caps on them all.3.All programs have lifetime interest rate caps4.The term of the loan is 150 years beyond the birth date of the youngest homeowner (i.e. date of birth April 1940, loan expiration April 2090)5.If a spouse passes, none of the terms of the loan change, and the remaining spouse may stay in the home for as long as they wish6.If you are receiving monthly draws from your reverse mortgage, and your check is late for any reason, the lender is required by federal statute to pay the homeowner a 10% late fee.7.Funds from a reverse mortgage are not considered income and therefore are not taxable and have no affect on ones Social Security or Medicare8.If a homeowner's health required extended hospitalization or assisted living care outside the home, as long as the homeowner returns to their home within 12 months there is no interruption in the loan9.Lenders are not permitted to take any steps in processing a reverse mortgage for any homeowner until the senior has received independent counseling from a certified reverse mortgage counselor.10.Following the closing of the reverse mortgage the homeowner has a three-day period to reconsider the loan and cancel the transaction without any cost or obligation.Reverse mortgages provide a safe secure solution for seniors to live out their life in the comfort of their own home with the dignity they deserve..
Barry Scoles is a leading expert in the Reverse Mortgage industry. For more information please contact him at 1st Reverse Mortgage USA 877-217-0166 or bscoles@1streversemortgageusa.comMortgages - Which Loan is Right For You
When buying a home, you need to take a home mortgage loan, either because as a debtor, you end up paying less tax, or because in a market where property prices rise faster than salary levels, the money you have saved falls short of the amount required. When searching for a home mortgage loan, you can select from a wide variety. Study the types of mortgage loans available in the market and note the interest rates for each before you sign any documents. You can select from the following:Fixed rate mortgage loans charge you the same rate of interest over a period of 15 to 30 years. You pay a high rate of interest over the tenure of the loan, because neither you nor the lender can take advantage of interest rate fluctuations, but you pay the same sum each month.
This is an excellent option if you are on a fixed income or a salary. You begin by paying off the interest first and the principal later?as most of the loan is paid off, your equity in the house increases as compared to the...
Mortgages - Which Loan is Right For You
Mortgages > Mortgages - Which Loan is Right For You
The Downside of Buy To Let
is... gearing. The same factor that gives the buy-to-let landlord his massive advantage in a rising property market is one of his worst enemies in a falling market. With housing markets across the world teetering on the brink of a chasm, now may very well be a good time to evaluate exactly what gearing means to the average buy to let landlord.What exactly is gearing? It's basically another word for leverage. Imagine you want to buy a $100,000 home.
The bank or lender, if prudent, will want you to put some of your own money up - to share the risk. If you are buying your own home, they traditionally want you to stump up between 5 and 15% to show you are serious. If you are buying an 'investment' property, until fairly recently the lenders wanted you to cough up about 25% (many lenders have recently relaxed these criteria - they will undoubtedly be punished for it by the market later!).On a $100,000 property, that would mean $25k - i.e. your leverage or gearing on the property would...
The Downside of Buy To Let
Mortgages > The Downside of Buy To Let
Credit Abuse: Innocent Consumers Routinely Victimized
Despite laws to protect consumers, credit abuse takes place all the time because consumers remain unaware of the tactics of many creditors, according to one expert on the growing problem."Your best protection against credit abuse is bankruptcy law, the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. The typical consumer has no idea how the law protects them, so their ignorance of the law enables creditors to get away with abuse," explained George Andersen, consultant to mortgage brokers and lawyers on credit abuse.Andersen teaches members of the public how to detect and resolve credit abuse that may be costing them large sums in excess interest paid on loans, particularly mortgages. He also teaches consumers about the dangers of credit repair shops, consumer counseling services, as well as identity theft.What you do not know can often cost you thousands, but in a short time a little knowledge can help you recover damages from past credit abuse and prevent it from...
Credit Abuse: Innocent Consumers Routinely Victimized
Mortgages > Credit Abuse: Innocent Consumers Routinely Victimized
Edwards Says Bush Will Eliminate Tax Deductions for Home Mortgages, Charity, and Health Care; Says Bush Tax Plan as Dangerous as Socialism, Will Further Endanger Working Families and Middle Class
Democratic nominee for vice president John Edwards blasted the Bush administration for destroying the strength of the middle-class and weakening the American economy. Delivering his major economic address in Cleveland, Edwards said, "The president has spent the past four years working to shift the tax burden onto people who work, while eliminating taxes on unearned income.
The Bush administration's new 'tax reform' plan, as revealed in a memo released by his former Treasury Secretary, is a reckless continuation of the President's history of serving special interests on the backs of working Americans."
"The President's plan will raise taxes on typical families and take away deductions for home mortgages, charity and health care, hurting middle class families even more than before and rewarding special interests."
"The President's new ?tax reform' is the ultimate expression of his values," said Edwards.
"We don't know all of the details, but we know...
Mortgages > Edwards Says Bush Will Eliminate Tax Deductions for Home Mortgages, Charity, and Health Care; Says Bush Tax Plan as Dangerous as Socialism, Will Further Endanger Working Families and Middle Class
Dramatic Slump in Life Insurance Cover Enquiries in June & July –- Moneynet.co.uk Warns on Vulnerable Homeowners Eschewing Cheap Insurance
(ContentDesk via ContentDesk Direct) August 1, 2006 -- A dramatic fall off in enquiry levels for life cover has led to fears that many thousands of home owners will be left exposed in the event of the death of the main breadwinner.- Life insurance cover enquiries plummeted by 50 per cent last month- Fall off blamed on the World Cup, heatwave& and rising bills Levels of enquiries to the Moneynet life insurance cover service plummeted by nearly 50 per cent in June and July of this year, down from nearly 8,000 during May to a little over 4,000 enquiries in each of June and July.Enquiry levels recorded on Moneynets online financial data comparison service are a broadly accurate measure of the levels of life cover broker sales. The Moneynet...
Dramatic Slump in Life Insurance Cover Enquiries in June & July –- Moneynet.co.uk Warns on Vulnerable Homeowners Eschewing Cheap Insurance
Mortgages > Dramatic Slump in Life Insurance Cover Enquiries in June & July –- Moneynet.co.uk Warns on Vulnerable Homeowners Eschewing Cheap Insurance
Home Equity Loan ? When Does Refinancing Make Sense?
For the last two years, interest rates have been much lower than anytime during the last thirty years. This has resulted in an unprecedented boom in real estate sales, home refinancing and home equity lending, as borrowers try to take advantage of these rates for the long term. But refinancing or even borrowing against your home's equity may not make sense for everyone. When is it a good idea to refinance your home? When is it not advisable? Traditionally, lenders advised homeowners not to refinance unless doing so would lower the interest rate on the loan by 1-2%. While anyone who can save 2% on their interest rate would almost certainly benefit from doing so, others might find refinancing worthwhile even with a smaller reduction in the interest rate.
Increased competition among lenders has brought the costs of refinancing down in recent years, so homeowners can realize a significant reduction in their home payments with reductions of ?% or so, depending on the size of their...
Home Equity Loan ? When Does Refinancing Make Sense?
Mortgages > Home Equity Loan ? When Does Refinancing Make Sense?
Where to Buy Cheap Used Cars at Bargain Prices!
One of the most important things you can do to purchase a cheap used car at bargain prices is to do your homework. You should check your local classified ads and see what the asking price is for the type of vehicle that you are in the market for. Make sure to get the high and low Blue Book Price on the vehicle that you are interested in. Here are some excellent sources for getting pricing: NADA GUIDES www.nadaguides.comKELLEY BLUE BOOK
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Mortgages > Where to Buy Cheap Used Cars at Bargain Prices!
Colored Contact Lenses - How to Choose the Color That is Best for You
You want colored contact lenses but you aren't sure which color would be best for you? Here are some tips that should help you select your best color. First of all there are two major types of colored contacts - enhancement color lenses and opaque lenses. Enhancement lenses are suitable for people with light eyes only, and are designed to make your own color brighter or give it a slightly different hue. For example: a person with naturally green eyes can wear blue enhancement color lenses and...
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Mortgages > Colored Contact Lenses - How to Choose the Color That is Best for You
Surgical Facelifts Remain the Gold Standard for Facial Rejuvenation
Face-lifting techniques are constantly being revised and updated by many prominent plastic surgeons throughout the world. A recent trend has been towards less invasive, less risky procedures alternately known as "Short-scar" or "Mini-facelifts." At the Center For Cosmetic Surgery, Andrew Wolfe M.D. and Steven Vath M.D. have embraced the new developments in an effort to decrease the cost, risk, and recovery associated with facial rejuvenation surgery. While full facelifts are still indicated...
Surgical Facelifts Remain the Gold Standard for Facial Rejuvenation
Mortgages > Surgical Facelifts Remain the Gold Standard for Facial Rejuvenation
New Club Showcases Old Cars in Cyberspace
Show cars are put to bed at the end of the car show season in early Fall until the season starts again in April. But in the hearts of car enthusiasts and collectors, the show must go on. Tonza Borden, antiques collector, has filled this niche by launching AtlantaAntiqueCarClub.com. The web site is a virtual community that offers a showcase of seldom seen vintage motorcars, research, history, private collections, and many more things to do while you are online. Borden did not jump on the classic...
used cars New Club Showcases Old Cars in Cyberspace Mortgages Reverse Mortgage Providing Peace of Mind Without Sacrificing Safety or Security
Mortgages > New Club Showcases Old Cars in Cyberspace