Reverse Mortgage Lenders Direct

Reverse Mortgage Facts Reverse Mortgages have been around for longer than most people realize. They were around before Reagan was president. It was from this PRE Reagan era, where MOST of the misconceptions about the Reverse Mortgage come from.

If you are like many folks, you have heard THINGS about the Reverse Mortgage that may or may not be truthful. The most important thing to remember, is the US Government now insures and regulates Reverse Mortgages making them one of the most regulated and secure financial products on the market today.

Post Reagan FHA & HUD Regulations are in place to ensure the safety and protection of today’s Senior Citizens.

I’m here to dispel some of the most common misconceptions that have been and still are floating around today. Below are some of the most popular ones. If you don’t see yours, just give me a call.

Misconception: If I get a Reverse Mortgage, the bank will own my home
Truth: No, the bank does NOT own your home. You retain ownership and remain on title. Just like any other mortgage, the lender is only the lien holder, but you are the owner.

Misconception: If I get a Reverse Mortgage, I can’t move
Truth: You are free to move if you see fit. You can sell your home at any time and keep the remaining equity for yourself. Remember, it’s still your home.

Misconception: My kids will owe the balance of the loan when I die
Truth: Your children/heirs have absolutely no financial responsibility for the loan on your home. When you pass away, they will have the choice of keeping the home, selling it, or walking away.

Why would they walk away? If the home, at the time of your passing, is worth LESS than what is OWED, they will have no financial gain by keeping it. They could walk away and let the bank sell the home and have no financial obligation for it.

However, if the home is worth more than what is owed, they can sell it and keep the money for themselves.

Misconception: If I die, my spouse won’t have a place to live
Truth: As long as both of you are on the loan/title, if one of you predeceases the other, the surviving spouse will be able to continue living in the home under the terms of the Reverse Mortgage, for the rest of their life. No Mortgage Payments Ever!

Misconception: I heard that the bank can take my home if the loan balance exceeds the value of the home?
Truth: NO. REGARDLESS of what happens to the value of your home after you close your loan, the bank can never take your home back. The FHA Mortgage Insurance included in your Reverse Mortgage protects you from this ever becoming a problem.

Back-up plan: reverse mortgages can help folks afford retirement, but are they a good offering for insurers with banks?(Life: Reverse Mortgages)(Statistical table): An article from: Best's Review
Book (A.M. Best Company, Inc.)

3 to 5 year minimum

2009-01-31 11:30:30 by RM_Guy

If you are considering a reverse mortgage, plan on staying in the home for at least 3 to 5 years. I do not advise a shorter time period. The longer you have a reverse mortgage the less expensive the closing costs become. This is because you spread the costs over a greater number of years, thus lowering the annual costs.
In this respect they are similar to a "forward" mortgage. You would not get a 30 year forward mortgage if you knew you were leaving the home in 2 years, too expensive.
There are no "points" in a reverse mortgage. HUD does not allow such deception in reverse mortgages

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California Seniors Know The Facts Before Getting a Reverse Mortgage  —
San Jose, CA (PRWEB) November 26, 2013 Shashank Shekhar , CEO of Arcus Lending in a recently published blog post, advised California seniors to understand the facts about reverse mortgages before taking the plunge.

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  • Avatar deb-deb Who should I contact about a reverse mortgage?
    Sep 03, 2012 by deb-deb | Posted in Renting & Real Estate

    I would like some info regarding a reverse mortgage. I am 73 yrs old and this sounds like something that I could benefit from. I have no idea where to start.

    • Start with loan officers. Not all lenders do reverse mortgages. And, frankly, they re not a good idea for most people. (Despite those TV commercials with Robert Wagner.) But call a mortgage company in your area and ask. Odds are, you ll be referred to someone else. But that s the way to find out who does them. Or you could do an online search--something like "Reverse Morgages [your state]" as in "Reverse Mortgages New York." That ll bring up some. But, again, be very, very, very careful. In some cases, they re a good solution. In most cases, they re not. Hope …