A Home Equity Conversion Mortgage (HECM) is also known as a reverse mortgage. Reverse mortgages are like home equity loans with one major difference. Like a home equity loan, you borrow against the value of your home. And like a home equity loan, you can get the cash from a reverse mortgage in a lump sum or in dribs and drabs as you need it. With a reverse mortgage, you pay back nothing on the loan until you move out of your home or sell it. The proceeds are used to pay off the amount you've borrowed, and the amount you owe is limited to the value of your home. Learn more here about reverse mortgages or a HECM.
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Reverse Mortgage Fraud Increases - Prompts FBI Warning
As the economy continues its downturn, reverse mortgages are on the rise. Reverse mortgages allow senior citizens to tap into their home’s equity and receive monthly payments for a lender. To be eligible for a reverse mortgage you must be aged 62 or older and own your own home or have a small…
Posted on:
Jul 14, 2009
Jul 14, 2009
Choices With Reverse Mortgage Payments
If you are 62 years or older, you may qualify for a reverse mortgage. Reverse mortgages can come in different forms and give you different choices. You can take a lump sum payment when you obtain a reverse mortgage or you can choose to receive a monthly payment. Reverse mortgage fees can be high and are not for everyone. Reverse mortgage are also known as a home equity conversion mortgage or HECM.
Posted on:
Jun 26, 2009
Jun 26, 2009
How Does A Reverse Mortgage Work And What Are The Pitfalls?
How does a reverse mortgage work? A homeowner can take out a loan based on the equity in their home, and the loan becomes due when the home is sold. Usually FHA’s home equity conversion mortgage (HECM) program is loaded with insurance to prevent any loss in case the value of the home drops. However, pitfalls with reverse mortgages can range from life expectancy issues to home value calculations. And any of these pitfalls can cause problems down the line with reverse mortgages.
Posted on:
Jun 26, 2009
Jun 26, 2009
Questions for HUD Secretary Shaun Donovan
Shaun Donovan, Secretary of the Department of Housing and Urban Development (HUD), spoke to a members of the National Association of Real Estate Editors yesterday afternoon in Washington, D.C. After he made his prepared remarks, Donovan took questions from the media on the topics of foreclosures, mortgage lender compensation, and whether he is satisfied with the response from mortgage lenders to the loan modification program.
Posted on:
Jun 19, 2009
Jun 19, 2009
Reverse Mortgages Need More Regulation, The Comptroller of the Currency Says
Reverse mortgages are growing in popularity. But the dangers they pose to unsuspecting seniors are tremendous, according to the OCC. Also, reverse mortgages are extremely costly, which can be startling, especially if you don't understand all of the costs and fees that go into originating a reverse mortgage. Just because you don't pay out of pocket for a reverse mortgage doesn't mean it's not expensive.
Posted on:
Jun 8, 2009
Jun 8, 2009
If you're age 62 or older and have paid off your home, you may think about getting a reverse mortgage. A reverse mortgage is a way to tap into your home's equity but it comes at a cost. Interest accrues on the reverse mortgage, which will need to be paid off when you or your heirs sell the home. Is a reverse mortgage right for you? Can you use reverse mortgage funds to pay for a funeral? What can you do if you didn't understand the terms of the reverse mortgage you already got?
Posted on:
May 28, 2009
May 28, 2009
Can Reverse Mortgages Save Seniors Facing Foreclosure?
What can you do if you're retired and your investments plummeted during the financial crisis? One option may be to get a reverse mortgage, where a mortgage lender either pays you a lump sum or a monthly payment based on your home equity. To repay the loan, it must be repaid either through a home sale or with other money. The older you are the more money you can tap through a reverse mortgage, but be aware that fees tend to be high.
Posted on:
Apr 24, 2009
Apr 24, 2009
A reverse mortgage is a loan against the property. When the property is sold, the reverse mortgage is paid off from the proceeds. The lender doesn’t usually acquire equity in a reverse mortgage.
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Posted on:
Mar 23, 2009
Mar 23, 2009
Can Reverse Mortgage Be Used To Finance Home Repairs?
A reverse mortgage can only be used on a home that is the primary residence of the homeowners, and could not be used to finance repairs for a family's vacation home. A home equity loan would be the more logical way to pay for home repairs, even for a home held in a trust. As long as the value of the home is assured and the loan is secured by the property, the home equity loan would be repaid every month like any other loan.
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Posted on:
Mar 16, 2009
Mar 16, 2009
Who Is Responsible For Home With Reverse Mortgage?
The difference between a regular loan and a reverse loan is that, in a regular loan, all of the proceeds are usually given to the homeowner at the time the loan is taken out and the homeowner pays back the loan over time. In a reverse loan, the lender may pay the homeowner over time and the lender is repaid when the home is sold. The homeowner still bears the risk of what is going on in their home, even if there is a reverse mortgage.
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Posted on:
Mar 16, 2009
Mar 16, 2009
