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Is A Reverse Mortgage Right For You?
from: Mortage & Debt FactsA reverse mortgage is the exact opposite of a traditional mortgage.
Instead of you paying the bank to live in the house, the bank pays you to live in it. This may seem a bad deal for the bank, but there are a lot of reasons why a bank will allow a reverse mortgage.
Typically a reverse mortgage is only approved for someone 62 or more years of age that has paid off his or her original mortgage. With all that equity in the home, the senior sitting in it might want to stay in the home but face additional expenses in medical or living costs that they can’t cover. Instead of selling the home and downsizing, they may choose to do a reverse mortgage with a bank instead thus allowing them to remain in the home.
How It Works
The reverse mortgage is a little more complex to close than a traditional mortgage. There are a number of different rules surrounding this type of mortgage loan. The age limit is one barrier and also the condition of the home may be another. The home has to be in good condition, free of major faults, before the bank considers doing this type of mortgage.
Closing costs are significantly higher than the traditional loans and fees can also eat into equity. However, the upside is that you can get a disbursement of cash to help you pay immediate expenses while not having to vacate your home. This cash can come as a lump sum, a monthly payment, or even a credit line. The terms of the loan may differ with the bank involved and you should check to see what happens if you eventually sell the home instead of staying in it until you die.
The Potential Negatives
Seniors are targeted by unscrupulous lenders with predatory lending practices that can include a high fee reverse mortgage. Most lenders will be asked to undergo counseling before they take out a reverse mortgage, but that might not be enough to assess whether the mortgage is what you need at this point in your life.
As always, if you aren’t certain of what you are signing, don’t sign. Instead, try to review the documents with someone who is knowledgeable and can answer any questions you might have about this type of mortgage. There are some downsides to a reverse mortgage. They can impact your ability to receive Medicaid benefits and government financial assistance.
Be sure to not only look at the terms of the mortgage but also check with your local government offices to see if the mortgage product might actually reduce your income instead of increasing it, due to the offset of benefits.
Jumbo Mortgage Specific links
Jumbo Mortgage News
Look Before You Leap Into Jumbo ARMs - Fox Business
 Best Syndication | Look Before You Leap Into Jumbo ARMs Fox Business By Polyana da Costa With rates so low, most borrowers want the security of a 30-year fixed mortgage. But when getting a jumbo mortgage, that long-term safety means much higher monthly payments than an adjustable-rate mortgage would offer. Mortgage Rates: Low Mortgage Rates Spark Increase in New Home Sales HSH.com Weekly Mortgage Rates Radar: Fixed Mortgage Rates at New Record Low Again Current Mortgage Rates Today – Wells Fargo and SunTrust lower loan rates as ... |
Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances - FreeRateUpdate.com
Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances FreeRateUpdate.com Current jumbo 30 year fixed mortgage rates are at 4.125% and jumbo 15 year fixed mortgage interest rates are at 3.125%. Jumbo 5/1 ARM loan rates are at 2.250%. With excellent credit, borrowers can obtain these low jumbo mortgage rates with 0.7 to 1% ... |
Bankrate: Mortgage Rates Hold at Record Lows - MarketWatch (press release)
 World News Resource | Bankrate: Mortgage Rates Hold at Record Lows MarketWatch (press release) To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/ . The average 15-year fixed mortgage rate inched lower to a new record of 3.19 percent while the jumbo 30-year fixed mortgage remained at the record low of 4.52 percent ... Refinance Applications Increase in U.S. for Third Consecutive Week, Driven by ... Best Home Purchase Mortgage Rates Today: US Bank Still Going Strong |
Berlin Hyp issues first jumbo mortgage pfandbrief of 2012 - PropertyEU
Berlin Hyp issues first jumbo mortgage pfandbrief of 2012 PropertyEU Berlin-Hannoversche Hypothekenbank (Berlin Hyp) has announced the placing of a EUR 1 bn mortgage pfandbrief on the capital market, the first jumbo bond secured with mortgages to be placed by a German issuer in 2012. The issue was welcomed among German ... Berlin Hyp's €1bn mortgage Pfandbrief twice oversubsribed |
Jumbo Mortgages Do Have Benefits - FreeRateUpdate.com
 msnbc.com | Jumbo Mortgages Do Have Benefits FreeRateUpdate.com Jumbo mortgages are necessary for mortgage financing above the conforming (conventional) loan limit which is $417000 in most areas of the country. In some high cost areas, the conforming loan limit can be as high as $625500. Bankrate: Mortgage Rates Set 3rd New Record in a Row HSH.com Weekly Mortgage Rates Radar: Soft Jobs Report Keeps Mortgage Rates at ... Mortgage Rate Predictions For The Next 7 Days (May 10, 2012) |