Posted - June 19, 2015
If you are age 62 or older, you may be looking into a Home Equity Conversion Mortgage (HECM), or reverse mortgage loan, to help fund your retirement. While more than one million U.S. homeowners have used this loan to age in place, it is important you get educated on loan facts to decide if this financial planning tool is right for you.
Make sure to learn about typical expenses associated with a reverse mortgage loan, including closing costs. While a benefit of this loan is the ability toRead More...
Posted - June 2, 2015
Reverse mortgage risks include losing ownership of your home to the bank.
The bank does not take ownership of your home after getting a reverse mortgage; reverse mortgage borrowers maintain their ownership and title of the home. As long as you continue to honor loan terms as promised, such as paying property taxes and home insurance and occupying the home as your primary residence, you can retain ownership of your home. Keep in mind that a reverse mortgage is still secured with
Posted - May 21, 2015
Congratulations! You have worked hard your entire life and have finally reached retirement. After years of paying down your mortgage, the bulk of your wealth now rests in one main asset: your home. When a homeowner holds a significant amount of equity in their house, they are often described as someone who is “equity-rich,” and you should be proud to be among them. For senior homeowners like you, an important question eventually arises: how do you go about using the equity in your home andRead More...
Posted - May 18, 2015
Although you have probably seen some advertisements about reverse mortgages, you may not have given them much thought. However, as a senior looking to supplement your retirement income, but also trying to avoid monthly loan payments, those same advertisements may have also piqued your interest. No matter what stage of the research process you are in, one question likely sticks in your mind, “Is a reverse mortgage good or bad for my future?”
There are a few key questions you can askRead More...
Posted - May 14, 2015
For over half a century, reverse mortgage loans have enabled more than one million senior homeowners to convert a portion of their home equity into cash in order to supplement their retirement incomes. Reverse mortgages offer numerous advantages to borrowers, allowing them to retain ownership and live in their homes as long as they comply with loan terms. Senior homeowners commonly find this loan option very appealing because monthly mortgage payments are eliminated. Monthly payments areRead More...
Posted - February 18, 2015
In the world of finance, one cannot miss a particularly important word that is used quite often. This word is equity. There are many different definitions of the word equity, and the particular definition will depend very much on context. Generally speaking, equity is the value in an asset after the value of any debts owed on that asset is subtracted.
Equity is present in margin trading, in investment strategies, in a company balance sheet, and in stock that one owns in a business, calledRead More...
Posted - January 8, 2015
Reverse Mortgage Overview
In 1961, a new type of mortgage loan was created to assist a recent widow named Nellie Young in continuing to live in her home despite the loss of her husband and his income. This new loan type, called a reverse mortgage, allowed the widow to receive her home’s equity in cash while continuing to live there without a monthly mortgage payment.
Reverse mortgages are government insured loans that allow seniors above the age of 62 to access the equity in their homesRead More...