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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.
Va Mortgage Rate News
Fixed Mortgage Rates Hit Record Lows Again - MarketWatch (press release)
 USA TODAY | Fixed Mortgage Rates Hit Record Lows Again MarketWatch (press release) MCLEAN, Va., May 17, 2012 /PRNewswire via COMTEX/ -- Freddie Mac (OBB:FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates again hitting new record lows. The 30-year fixed-rate mortgage ... Mortgage rates fall again to record low Mortgage Rates Respond To Housing Starts Data Mortgage rates in America reach record lows |
When Does It Make Sense to Refinance? - MarketWatch (press release)
 Best Syndication | When Does It Make Sense to Refinance? MarketWatch (press release) Rate reductions may cut monthly costs and the overall expense of ownership, making a home more affordable. The big question: When is the right time to refinance? "Many borrowers have the opportunity to reduce mortgage payments at a time when expenses ... Current Mortgage Rates Today – PNC and KeyBank Lower Loan Rates At 3.79 Percent, Mortgage Rates Plumb New Lows |
Freddie Mac Announces Seventh K Certificates Offering This Year, K-708, Backed ... - MarketWatch (press release)
Freddie Mac Announces Seventh K Certificates Offering This Year, K-708, Backed ... MarketWatch (press release) MCLEAN, Va., May 21, 2012 /PRNewswire via COMTEX/ -- Freddie Mac (OBB:FMCC) today announced a new offering of Structured Pass-Through Certificates ("K Certificates") backed exclusively by multifamily mortgages with a 7-year term. |
Low Rates Affecting Underwriting Time - PR Web (press release)
Low Rates Affecting Underwriting Time PR Web (press release) VA home loan interest rates continue to stay at all-time lows and thousands of veterans and military families are refinancing their existing home loans to interest rates below 4%. Because of the large volume of purchases and refinances, ... |
Second Consecutive Week Of Record-Low Fixed Mortgage Rates - MarketWatch (press release)
 Best Syndication | Second Consecutive Week Of Record-Low Fixed Mortgage Rates MarketWatch (press release) MCLEAN, Va., May 10, 2012 /PRNewswire via COMTEX/ -- Freddie Mac (OBB:FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates hitting new all-time record lows for the second consecutive week ... Mortgage rates fall to new low–again Mortgage Rate Predictions For The Next 7 Days (May 10, 2012) Current Mortgage Rates Today – HSBC and Wells Fargo Make Changes |
More Than 95 Percent Of Refinancing Borrowers Choose Fixed-Rate Mortgages - MarketWatch (press release)
 HNN Huntingtonnews.net | More Than 95 Percent Of Refinancing Borrowers Choose Fixed-Rate Mortgages MarketWatch (press release) MCLEAN, Va., May 14, 2012 /PRNewswire via COMTEX/ -- In the first quarter of 2012, fixed-rate loans accounted for more than 95 percent of refinance loans, based on the Freddie Mac (OBB:FMCC) Quarterly Product Transition Report released today. FREDDIE MAC: Second Consecutive Week Of Record Low Mortgage Rates Current Mortgage Rates Today – PNC Lowers Rates while US Bank Raises Them |
Fixed Mortgage Rates Average New All-Time Record Lows - MarketWatch (press release)
 HNN Huntingtonnews.net | Fixed Mortgage Rates Average New All-Time Record Lows MarketWatch (press release) MCLEAN, Va., May 3, 2012 /PRNewswire via COMTEX/ -- Freddie Mac (OBB:FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates finding new all-time record lows continuing to help keep ... Mortgage rates fall to record low FREDDIE MAC: Mortgage Rates At All-Time Record Lows Current Mortgage Rates Today – Citibank and KeyBank Raise Rates |