“A reverse mortgage means you don’t make any payments, and the loan balance increases each month,” says Steve Hill, a mortgage broker at SBC Lending in Redondo Beach, California. “So, the loan balance gets higher each month instead of lower — it goes in reverse.” The money that a...
And with a reverse mortgage, you continue to own your home, which means you're still responsible for property taxes, homeowners insurance, home repairs and maintenance, and so on. If you fail to pay property taxes, insurance, or maintain the home, the lender can use the loan to make thes...
If your cash flow has dried up and you have no other way to cover the cost of either major, one-time expenses or minor, daily expenses, a reverse mortgage is an effective way to fill those gaps, possibly for years. But sacrificing home equity today means it won’t be there in the ...
Finally, there’s a rarely used alternative when aging parents have adult children who are of means. The grown children can actually lend their parents the money, like a bank reverse mortgage, but the equity flows to the kids — not to the bank. ...
A reverse mortgage is advisable for people who have retired, or are in need of additional cash flow to meet their living expenses, but have no means of generating income. In order to qualify for a reverse mortgage, certain criteria must be met. The minimum age of the property owner must ...
Specifically, the home you’re seeking a reverse mortgage on must be your primary residence. That means it must be the address where you spend most of the calendar year. Additionally, your home needs to be in livable condition. If it’s not, your lender may ask you to make improvements ...
If the mortgage interest rates fall, a few homeowners might consider opting for the refinance option. This means to trade in their existing loan for another one with suitable conditions. Additionally, there is the reverse mortgage, tailored mainly for senior citizens, allowing them to transform ...
home when they take out a reverse mortgage. Because payments represent an advance on equity, government agencies do not consider them as income, which means they do not increase the borrower’s tax burden nor usually affect eligibility for receipt of funds or services fromSocial SecurityorMedicare...
Jonathan L. Pompan
Definition of Mortgage Fraud The intention of mortgage fraud is typically to receive a larger loan amount than would have been permitted if the application had been made honestly. For example, by intentionally falsifying information on a mortgage application. Mortgage fraud schemes include straw ...