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Is A Reverse Mortgage Right For You?
from: Deb St. George - HomelessInKingCounty.comA 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. So, 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.
Home Mortgage Rates News
30-year mortgage rate falls to record 3.795 - Chicago Sun-Times
 Bloomberg | 30-year mortgage rate falls to record 3.795 Chicago Sun-Times By MARCY GORDON AP Business Writer May 17, 2012 2:52PM WASHINGTON (AP) — Average US rates for 30-year and 15-year fixed mortgages fell to record lows for the third straight week. The steady decline has made home-buying and refinancing more affordable ... Mortgage Rates in U.S. Fall to Record Lows With 30-Year at 3.79% US 30-year mortgage rate falls to record 3.79 pct. Mortgage rates fall to another record low |
Payment Rates Improve on Texas Home Mortgages - LoanSafe
 CNBC.com | Payment Rates Improve on Texas Home Mortgages LoanSafe Mississippi, Georgia and Nevada had the highest home mortgage delinquency rates in the first quarter — all over 10 percent, the mortgage bankers said. The best performing home loan markets for on-time payments were in the Dakotas and Alaska. US Q1 delinquency rate lowest since 2008: MBA Mortgage Delinquency Rate in US Fall to 2008 Levels Mortgage Applications Jump; Rates Fall |
US 30-year mortgage rate falls to record 3.79 pct. - Atlanta Journal Constitution
US 30-year mortgage rate falls to record 3.79 pct. Atlanta Journal Constitution By MARCY GORDON AP WASHINGTON — Average US rates for 30-year and 15-year fixed mortgages fell to record lows for the third straight week. The steady decline has made home-buying and refinancing more affordable than ever for those who can qualify. |
Today's Mortgage Rates: Chase, SunTrust and Wells Fargo Home Purchase Rates ... - Eastern Morning Herald
 World News Resource | Today's Mortgage Rates: Chase, SunTrust and Wells Fargo Home Purchase Rates ... Eastern Morning Herald Today's mortgage rates at top US banks, including Chase (NYSE:JPM) are looking more than decent. Potential homebuyers might consider Chase's 30-year fixed rate home loan, as it can be locked in and taken home for as low as 3.750% and an APR of 3.832%. Mortgage Rates: Low Mortgage Rates Accompany Record High Home Affordability TSB slashes rates Today's Mortgage Rates for 5/17/12 |
News Summary: US mortgage rates hit record lows - BusinessWeek
News Summary: US mortgage rates hit record lows BusinessWeek By AP RATES DROP AGAIN: Average US rates for 30-year and 15-year fixed mortgages fell to record lows for the third straight week, according to a survey by mortgage buyer Freddie Mac. RECORD LOWS: The rate on the 30-year mortgage, the most popular, ... |
On a knife-edge: 100000 families could lose their homes if mortgage rates rise ... - Mirror.co.uk
 e-wisdom.com | On a knife-edge: 100000 families could lose their homes if mortgage rates rise ... Mirror.co.uk Ultimately, it is these people who could end up losing their home.” A £100000 repayment mortgage over 25 years at a current average rate of 3.56% costs £504 per month. A 1% increase on that would take it up to £559 and a rise of 3% would add another ... Mortgage Refinances That Make Sense Interest Rate Cut to Benefit Homeowners Mortgage delinquency rates at lowest levels in three years |
April foreclosure rates down 7 percent - Kearney Hub
 Bloomberg | April foreclosure rates down 7 percent Kearney Hub The Mortgage Bankers Association reported on Wednesday that the percentage of mortgages that were one payment past due as of March 31 declined to the lowest level since mid-2007. While the share of home loans that were at least three months past due at ... Foreclosures Plunge to Five-Year Low in US: Mortgages Foreclosures Plunge to Five-Year Low in U.S. Recovery: Mortgages UPI NewsTrack Business |