SOUTHWEST LOUISIANA (KPLC) -
There's been news coverage of a case out of Philadelphia where several widows faced foreclosure on their homes —because their husbands had taken out reverse mortgages.
What should you watch out for if you're thinking about taking out such a loan.
The TV ads say "You'll learn the benefits of a government insured reverse mortgage." What are they?
Reverse mortgages are a way to turn your home's equity into cash. And most of the ads offering such loans say you will never have to leave your home before you die.
But Carmen Million with the Better Business Bureau said it's important to fully understand what you're getting yourself into.
"A reverse mortgage is not for everybody so you need to determine what a reverse mortgage is and if it's something that would benefit you," she said.
Before you sign up for a reverse mortgage, it's important to consider a number of things, such as how it will affect your spouse and your heirs if you hope to leave anything to them.
"Maybe not you, during your lifetime, but your spouses or your heirs may not have any rights to that home once the person who signs the contract is deceased. So you need to make sure you understand what your rights are in relation to your spouse and your heirs," Million said.
Contracts can be hard to understand, so you may want to have your attorney review anything you plan to sign.
"You would need to read your contract and understand exactly how it works, how it's going to benefit you versus, you want to take into consideration the benefits versus any negatives," she said.
Under no circumstances with any loan should you be asked to pay some money up front.
And it's important for borrowers to remember even with a reverse mortgage, they still must pay taxes, insurance and maintenance on their homes.
HUD has a lot of information on reverse mortgages and what to watch out for. Click HERE for information.
see more: http://www.kplctv.com/story/29676410/reverse-mortgages-look-before-you-leap
Friday, July 31, 2015
Wednesday, July 29, 2015
Why 3% Down Mortgages Alone Won't Revive Housing
In the world of mortgage financing there is stuff that's seen and stuff that's not. Lowering down payment requirements from 5% to 3% will surely help some prospective buyers. However, in a world with roughly 4% interest rates and average sales prices that remain 11% below their 2005 peak, down payments are not the only issue to solve.
The government-sponsored enterprises have begun to accept loans with 3% down, but they're not just any old 3% loan. The GSEs want something more, and that "something" is 18% mortgage insurance coverage.
Combine the 3% down payment and the 18% insurance requirement, and Fannie Mae and Freddie Mac are following long-time industry standards by requiring at least a 20% cushion in case something goes wrong.
And while mortgage insurance is a burden, the bigger obstacle to focus on, according to a RealtyTrac home affordability analysis, is non-household debt.
In 92% of the counties analyzed, payments on a median-priced home required less than 43% of median household income, which is the maximum debt-to-income ratio allowed for a qualified mortgage by the Consumer Financial Protection Bureau.
Add in the typical student loan debt and car payment, and less than half — 48% — of U.S. housing markets are affordable for median-income earners using the 43% DTI.
Additionally, the standards for 3% loans is hardly straight-forward, meaning they are not for everyone.
For instance, Fannie Mae's MyCommunityMortgage program is only available if at least one borrower is a first-time home buyer who has completed pre-purchase education and counseling. The loan must have a fixed rate and be secured with a one-unit principal residence — meaning that duplexes, triplexes and quads are off limits. Manufactured housing is also ineligible. However, gifts can be used to bulk-up reserves, a new wrinkle. The program can also be used to refinance existing Fannie Mae loans and cash-out refinancing is also allowed.
read more: www.nationalmortgagenews.com/news/origination/why-3-down-mortgages-alone-wont-revive-housing-1057171-1.html
The government-sponsored enterprises have begun to accept loans with 3% down, but they're not just any old 3% loan. The GSEs want something more, and that "something" is 18% mortgage insurance coverage.
Combine the 3% down payment and the 18% insurance requirement, and Fannie Mae and Freddie Mac are following long-time industry standards by requiring at least a 20% cushion in case something goes wrong.
And while mortgage insurance is a burden, the bigger obstacle to focus on, according to a RealtyTrac home affordability analysis, is non-household debt.
In 92% of the counties analyzed, payments on a median-priced home required less than 43% of median household income, which is the maximum debt-to-income ratio allowed for a qualified mortgage by the Consumer Financial Protection Bureau.
Add in the typical student loan debt and car payment, and less than half — 48% — of U.S. housing markets are affordable for median-income earners using the 43% DTI.
Additionally, the standards for 3% loans is hardly straight-forward, meaning they are not for everyone.
For instance, Fannie Mae's MyCommunityMortgage program is only available if at least one borrower is a first-time home buyer who has completed pre-purchase education and counseling. The loan must have a fixed rate and be secured with a one-unit principal residence — meaning that duplexes, triplexes and quads are off limits. Manufactured housing is also ineligible. However, gifts can be used to bulk-up reserves, a new wrinkle. The program can also be used to refinance existing Fannie Mae loans and cash-out refinancing is also allowed.
read more: www.nationalmortgagenews.com/news/origination/why-3-down-mortgages-alone-wont-revive-housing-1057171-1.html
Friday, July 24, 2015
Christians not missing out on new mortgage financing tool offered to Muslims
The idea of an interest-free mortgage is not as impossible as one might believe. In fact, in an effort to increase home ownership in the state of Seattle some are floating the idea of interest-free mortgages in order to meet the needs of an untapped portion of society: Muslims.
Seattle Mayor Ed Murray raised minimum wage to $15 per hour for his constituents in Seattle in 2014 and now he is trying to get low to mid-income Muslims into their own homes without having to pay interest and violate their religious beliefs.
Photo by David Ryder/Getty Images
On July 23, Fox News reported that Seattle officials have joined the push for Sharia-compliant mortgages, with the Seattle mayor proposing these types of loans in order to provide affordable housing to the Islamic community.
So what does that mean? It means that when a Muslim wants to buy a home the lender must give them a mortgage contract that does not charge them any interest, as paying interest violates their religious belief. Many Americans would say paying interest violates some type of belief system they have as well--at least usury interest rates (the practice of lending money at unusually high rates). But the odds of getting large banks to be motivated to change their policy about charging them interest would be nil, even with a mayor advocating it.
In Seattle, however, the Muslim community is garnering support for interest-free mortgage loans, using their religious dictates as a tool in which to achieve this highly-desired objective. According to Seattle Mayor Ed Murray, this type of mortgage would only be for the low and middle income Muslim families--and only those who strictly adhere to Sharia law, since traditional mortgages would be unattainable for them, as such interest-charging mortgages (or any financial dealings involving the paying or receiving of interest) is forbidden in their faith.
Christians are commanded in their religion to not engage in usury, either, when they lend money, and they are discouraged from owing any man anything, too, but there are not any banks in America giving them loans automatically at low-interest rates just because of their religious beliefs. So should one religious belief trump another when it comes to getting a home mortgage without interest?
The obvious answer is 'no,' of course. But in this instance the Muslim community will not be getting to buy a home more cheaply than their Christian competitors, as Sharia law may dictate that Muslims not pay interest, but it does not dictate that they not pay the full value of a home--along with any profit a bank would make if they did charge interest for the home loan over time. Thus, the banker just has to make sure the contract with his Muslim client does not include the words "interest" for the financial profit that the bank will realize as a result of the home mortgage loan based on Sharia law.
read more: http://www.examiner.com/article/christians-not-missing-out-on-new-mortgage-financing-tool-offered-to-muslims
Seattle Mayor Ed Murray raised minimum wage to $15 per hour for his constituents in Seattle in 2014 and now he is trying to get low to mid-income Muslims into their own homes without having to pay interest and violate their religious beliefs.
Photo by David Ryder/Getty Images
On July 23, Fox News reported that Seattle officials have joined the push for Sharia-compliant mortgages, with the Seattle mayor proposing these types of loans in order to provide affordable housing to the Islamic community.
So what does that mean? It means that when a Muslim wants to buy a home the lender must give them a mortgage contract that does not charge them any interest, as paying interest violates their religious belief. Many Americans would say paying interest violates some type of belief system they have as well--at least usury interest rates (the practice of lending money at unusually high rates). But the odds of getting large banks to be motivated to change their policy about charging them interest would be nil, even with a mayor advocating it.
In Seattle, however, the Muslim community is garnering support for interest-free mortgage loans, using their religious dictates as a tool in which to achieve this highly-desired objective. According to Seattle Mayor Ed Murray, this type of mortgage would only be for the low and middle income Muslim families--and only those who strictly adhere to Sharia law, since traditional mortgages would be unattainable for them, as such interest-charging mortgages (or any financial dealings involving the paying or receiving of interest) is forbidden in their faith.
Christians are commanded in their religion to not engage in usury, either, when they lend money, and they are discouraged from owing any man anything, too, but there are not any banks in America giving them loans automatically at low-interest rates just because of their religious beliefs. So should one religious belief trump another when it comes to getting a home mortgage without interest?
The obvious answer is 'no,' of course. But in this instance the Muslim community will not be getting to buy a home more cheaply than their Christian competitors, as Sharia law may dictate that Muslims not pay interest, but it does not dictate that they not pay the full value of a home--along with any profit a bank would make if they did charge interest for the home loan over time. Thus, the banker just has to make sure the contract with his Muslim client does not include the words "interest" for the financial profit that the bank will realize as a result of the home mortgage loan based on Sharia law.
read more: http://www.examiner.com/article/christians-not-missing-out-on-new-mortgage-financing-tool-offered-to-muslims
Monday, July 20, 2015
Indian Wells Tennis Garden set for another expansion
The BNP Paribas Open plans to build a third stadium by the 2017 tennis tournament that will also include a museum, building permits submitted to the city of Indian Wells show.
Pending ownership approval, construction is expected to begin immediately following the March 2016 tournament with the expectation that it will be ready for use within 12 months.
The stadium would seat roughly 5,000 and will provide the Indian Wells Tennis Garden with the first tennis museum in the world to be incorporated within a stadium. According to build plans, Stadium 3 will replace the existing Court 3, situated between stadiums 1 and 2 near the Circle of Palms courtyard in the heart of the tennis village.
BNP Paribas Open Chief Executive Raymond Moore initially announced a plan for a themed stadium on the last day of this year’s Master Series tournament, on March 22, and said the project was simply awaiting a green light from tournament owner Larry Ellison. The tournament says it is still waiting for that formal approval, though Ellison spoke about the project in an interview with Bloomberg in early June.
When Moore spoke about the possibility of the project in March, he said a tennis memorabilia assemblage he deemed to be “the finest collection in the world” had been purchased by the tournament, and Ellison later told Bloomberg that some of those objects date back to Elizabethan times.
“So we are pretty much ready to go,” Moore said in March, “but Mr. Ellison needs to make that decision. He’s mulling it over. He told me he will let me know soon.”
While awaiting word from Ellison, the Oracle co-founder and billionaire who purchased the BNP Paribas Open in 2009 for $100 million, Moore and tournament director Steve Simon filed with the city of Indian Wells the necessary paperwork that details what the stadium will look like and how it will function. The City Council has since unanimously approved the plans.
read more: http://www.desertsun.com/story/sports/tennis/bnp/2015/07/19/tennis-garden-expansion-stadium-museum/30307649/
Pending ownership approval, construction is expected to begin immediately following the March 2016 tournament with the expectation that it will be ready for use within 12 months.
The stadium would seat roughly 5,000 and will provide the Indian Wells Tennis Garden with the first tennis museum in the world to be incorporated within a stadium. According to build plans, Stadium 3 will replace the existing Court 3, situated between stadiums 1 and 2 near the Circle of Palms courtyard in the heart of the tennis village.
BNP Paribas Open Chief Executive Raymond Moore initially announced a plan for a themed stadium on the last day of this year’s Master Series tournament, on March 22, and said the project was simply awaiting a green light from tournament owner Larry Ellison. The tournament says it is still waiting for that formal approval, though Ellison spoke about the project in an interview with Bloomberg in early June.
When Moore spoke about the possibility of the project in March, he said a tennis memorabilia assemblage he deemed to be “the finest collection in the world” had been purchased by the tournament, and Ellison later told Bloomberg that some of those objects date back to Elizabethan times.
“So we are pretty much ready to go,” Moore said in March, “but Mr. Ellison needs to make that decision. He’s mulling it over. He told me he will let me know soon.”
While awaiting word from Ellison, the Oracle co-founder and billionaire who purchased the BNP Paribas Open in 2009 for $100 million, Moore and tournament director Steve Simon filed with the city of Indian Wells the necessary paperwork that details what the stadium will look like and how it will function. The City Council has since unanimously approved the plans.
read more: http://www.desertsun.com/story/sports/tennis/bnp/2015/07/19/tennis-garden-expansion-stadium-museum/30307649/
Monday, July 13, 2015
Michael Estrin: 4 common mortgage errors and how to avoid them
Many people make expensive, easily avoidable mistakes when shopping for a mortgage.
"Borrowers who don't do their homework often end up paying more than they should, and in some cases that extra cost can really hurt," says Paul Sian, a real estate lawyer and Realtor with HER Realtors in Cincinnati.
A study from the Consumer Financial Protection Bureau concludes that many consumers don't shop for mortgages, and they tend to get their mortgage information from lenders and real estate agents, who aren't impartial.
According to Sian, borrowers tend to fixate on the home's purchase price, and secondarily, the loan's interest rate. But factors like closing costs, the loan's total price tag, whether the loan is fixed or variable, and whether the borrower is required to get private mortgage insurance can dramatically alter what borrowers end up paying.
More coverage
Reverse mortgages are due when borrowers die
Change: Where it occurs, and where not
Following are four common mortgage errors and tips for avoiding them.
Shopping just one lender
Whether it's a new car or the latest gadget, consumers know it pays to shop around for the best deal. But half of mortgage borrowers consider just one lender or broker in their shopping process, according to the CFPB study.
"It is a good idea to shop around for mortgages in order to get better rates," Sian says. "Sometimes large banks and lenders don't offer the best rates that can be had. Additionally, some lenders add in fees. While the final fees do show up at the end, many borrowers don't understand the fees and accept them as the cost of getting the loan, even though they could've avoided those fees by shopping around."
A small difference in the interest rate can make a big impact on cost. On a $200,000 fixed-rate, 30-year mortgage, an interest rate of 4.5 percent costs $59 a month more than a 4 percent rate. That adds up to $3,512 in the first five years.
The lower interest rate means the borrower would pay off an additional $1,421 in principal in the first five years, even while making lower payments.
Read more at http://www.philly.com/philly/business/real_estate/residential/Michael_Estrin_4_common_mortgage_errors_and_how_to_avoid_them.html
"Borrowers who don't do their homework often end up paying more than they should, and in some cases that extra cost can really hurt," says Paul Sian, a real estate lawyer and Realtor with HER Realtors in Cincinnati.
A study from the Consumer Financial Protection Bureau concludes that many consumers don't shop for mortgages, and they tend to get their mortgage information from lenders and real estate agents, who aren't impartial.
According to Sian, borrowers tend to fixate on the home's purchase price, and secondarily, the loan's interest rate. But factors like closing costs, the loan's total price tag, whether the loan is fixed or variable, and whether the borrower is required to get private mortgage insurance can dramatically alter what borrowers end up paying.
More coverage
Reverse mortgages are due when borrowers die
Change: Where it occurs, and where not
Following are four common mortgage errors and tips for avoiding them.
Shopping just one lender
Whether it's a new car or the latest gadget, consumers know it pays to shop around for the best deal. But half of mortgage borrowers consider just one lender or broker in their shopping process, according to the CFPB study.
"It is a good idea to shop around for mortgages in order to get better rates," Sian says. "Sometimes large banks and lenders don't offer the best rates that can be had. Additionally, some lenders add in fees. While the final fees do show up at the end, many borrowers don't understand the fees and accept them as the cost of getting the loan, even though they could've avoided those fees by shopping around."
A small difference in the interest rate can make a big impact on cost. On a $200,000 fixed-rate, 30-year mortgage, an interest rate of 4.5 percent costs $59 a month more than a 4 percent rate. That adds up to $3,512 in the first five years.
The lower interest rate means the borrower would pay off an additional $1,421 in principal in the first five years, even while making lower payments.
Read more at http://www.philly.com/philly/business/real_estate/residential/Michael_Estrin_4_common_mortgage_errors_and_how_to_avoid_them.html
Thursday, July 9, 2015
Mortgage applications rise as rates tick down
Mortgage applications increased 4.6% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending July 3, 2015. This week’s results included an adjustment for the July 4th holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 4.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 6% compared with the previous week. The Refinance Index increased 3% from the previous week.
The seasonally adjusted Purchase Index increased 7% from one week earlier. The unadjusted Purchase Index decreased 4% compared with the previous week and was 32% higher than the same week one year ago.
The refinance share of mortgage activity decreased to 48.0% of total applications, its lowest level since June 2009, from 48.9% the previous week. The adjustable-rate mortgage share of activity increased to 7.1% of total applications.
The FHA share of total applications decreased to 13.7% from 14.0% the week prior. The VA share of total applications remained unchanged at 10.8% from the week prior. The USDA share of total applications decreased to 0.9% from 1.0% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.23% from 4.26%, with points increasing to 0.37 from 0.33 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
see more: http://www.housingwire.com/articles/34408-mortgage-applications-rise-as-rates-tick-down
The Market Composite Index, a measure of mortgage loan application volume, increased 4.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 6% compared with the previous week. The Refinance Index increased 3% from the previous week.
The seasonally adjusted Purchase Index increased 7% from one week earlier. The unadjusted Purchase Index decreased 4% compared with the previous week and was 32% higher than the same week one year ago.
The refinance share of mortgage activity decreased to 48.0% of total applications, its lowest level since June 2009, from 48.9% the previous week. The adjustable-rate mortgage share of activity increased to 7.1% of total applications.
The FHA share of total applications decreased to 13.7% from 14.0% the week prior. The VA share of total applications remained unchanged at 10.8% from the week prior. The USDA share of total applications decreased to 0.9% from 1.0% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.23% from 4.26%, with points increasing to 0.37 from 0.33 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
see more: http://www.housingwire.com/articles/34408-mortgage-applications-rise-as-rates-tick-down
Monday, July 6, 2015
Mortgage Rates Hit 2015 Highs as Homebuyers Take a Breather
Consumers may have been more interested in planning their holiday vacation than a relocation as mortgage applications fell and interest rates edged upward this week. Mortgage rates are now at new 2015 highs.
30-year fixed-rate mortgages rose to 4.08% with an average 0.6 point for the week ending July 2, 2015, according to Freddie Mac’s weekly market survey. A year ago, the rate averaged 4.12%.
15-year fixed rates moved to 3.24% with an average 0.6 point. The same term priced at 3.22% a year ago.
5-year adjustable-rate mortgages headed up to 2.99% with an average 0.4 point. Last year at this time the same ARM averaged 2.98%
“Overseas events are generating significant day-to-day volatility in interest rates,” said Sean Becketti, chief economist for Freddie Mac, in a release. “The [Mortgage Bankers Association] composite index of mortgage applications fell 4.7% in response to what is now three consecutive weeks of mortgage rates over 4%. Other measures, however, confirmed continued strength in housing — pending home sales rose 0.9%, exceeding expectations, and the Case-Shiller house price index recorded another solid increase.”
The MBA’s weekly survey of lenders also reported refinance applications fell by 5% for the week ending June 26.
Lower loan activity for the most recent week may be more of a quick side trip than a major change in direction as the housing industry continues to be on track for its best year since 2006. Realtor.com’s most recent analysis of residential inventory and demand shows pending home sales are at their highest level in nine years.
“Factors lending themselves to the market’s upswing are the psychological effect of recently increased mortgage rates as well as the specter of the Fed raising interest rates later this year,” said Realtor.com Chief Economist Jonathan Smoke. “Although demand has been strong all year, in June we’re finally beginning to see an uptick in supply as sellers become more confident about home prices.”
A refinance ‘boomlet’ is on
read more: https://www.nerdwallet.com/blog/mortgages/mortgage-rates-hit-2015-highs/
30-year fixed-rate mortgages rose to 4.08% with an average 0.6 point for the week ending July 2, 2015, according to Freddie Mac’s weekly market survey. A year ago, the rate averaged 4.12%.
15-year fixed rates moved to 3.24% with an average 0.6 point. The same term priced at 3.22% a year ago.
5-year adjustable-rate mortgages headed up to 2.99% with an average 0.4 point. Last year at this time the same ARM averaged 2.98%
“Overseas events are generating significant day-to-day volatility in interest rates,” said Sean Becketti, chief economist for Freddie Mac, in a release. “The [Mortgage Bankers Association] composite index of mortgage applications fell 4.7% in response to what is now three consecutive weeks of mortgage rates over 4%. Other measures, however, confirmed continued strength in housing — pending home sales rose 0.9%, exceeding expectations, and the Case-Shiller house price index recorded another solid increase.”
The MBA’s weekly survey of lenders also reported refinance applications fell by 5% for the week ending June 26.
Lower loan activity for the most recent week may be more of a quick side trip than a major change in direction as the housing industry continues to be on track for its best year since 2006. Realtor.com’s most recent analysis of residential inventory and demand shows pending home sales are at their highest level in nine years.
“Factors lending themselves to the market’s upswing are the psychological effect of recently increased mortgage rates as well as the specter of the Fed raising interest rates later this year,” said Realtor.com Chief Economist Jonathan Smoke. “Although demand has been strong all year, in June we’re finally beginning to see an uptick in supply as sellers become more confident about home prices.”
A refinance ‘boomlet’ is on
read more: https://www.nerdwallet.com/blog/mortgages/mortgage-rates-hit-2015-highs/
Wednesday, July 1, 2015
Are reverse mortgages a scam?
Home A_VALLESEquity Conversion Mortgages (HECM), more commonly known as reverse mortgages, were authorized by President Ronald Reagan in 1987 and are federally insured by the Department of Housing and Urban Development (HUD). Hundreds of thousands of people aged 62 or older have benefited from this program, which has provided them the opportunity to remain financially independent.
Yet, despite a 27-year history of helping senior homeowners, there still remains confusion over whether reverse mortgages actually work. A client recently shared that her daughter had heard reverse mortgages are a “scam.” She wasn’t sure why this was so, but had “heard it somewhere.” Fortunately, once the daughter learned about the merits of a reverse mortgage, she was in agreement with her mother that it was the best option.
This is a recurring pattern of seniors, adult children, attorneys, estate planners, and real estate agents, to name just a few, who have a poor opinion about reverse mortgages, but don’t really know why.
To help dispel this unwarranted negative perception, here’s a short summary of the top seven myths about reverse mortgages:
The lender will own your home – FALSE!
You continue to retain ownership of your home. Reverse mortgage borrowers may remain in the home for as long as they wish subject to paying the property charges, which include real estate taxes and insurance. When the home is sold any profit is yours.
Your heirs must pay the loan back – FALSE!
A reverse mortgage is a non-recourse loan and you do not sign personally. The lender is repaid from the sale of the property. Your heirs are not responsible for paying back the loan.
You need income and good credit to qualify – IT DEPENDS!
As of April 27, 2015, all borrowers must provide their income information and have their credit profile reviewed. For those who do not meet the guidelines the lender will “set aside” future amounts to pay the property charges, subject to the available reverse mortgage loan amount.
You must make monthly payments – FALSE!
There are never any mandatory monthly principal or interest payments. However, you may make a payment at any time with no prepayment penalty.
Your home must be debt free to qualify – FALSE!
Yet, despite a 27-year history of helping senior homeowners, there still remains confusion over whether reverse mortgages actually work. A client recently shared that her daughter had heard reverse mortgages are a “scam.” She wasn’t sure why this was so, but had “heard it somewhere.” Fortunately, once the daughter learned about the merits of a reverse mortgage, she was in agreement with her mother that it was the best option.
This is a recurring pattern of seniors, adult children, attorneys, estate planners, and real estate agents, to name just a few, who have a poor opinion about reverse mortgages, but don’t really know why.
To help dispel this unwarranted negative perception, here’s a short summary of the top seven myths about reverse mortgages:
The lender will own your home – FALSE!
You continue to retain ownership of your home. Reverse mortgage borrowers may remain in the home for as long as they wish subject to paying the property charges, which include real estate taxes and insurance. When the home is sold any profit is yours.
Your heirs must pay the loan back – FALSE!
A reverse mortgage is a non-recourse loan and you do not sign personally. The lender is repaid from the sale of the property. Your heirs are not responsible for paying back the loan.
You need income and good credit to qualify – IT DEPENDS!
As of April 27, 2015, all borrowers must provide their income information and have their credit profile reviewed. For those who do not meet the guidelines the lender will “set aside” future amounts to pay the property charges, subject to the available reverse mortgage loan amount.
You must make monthly payments – FALSE!
There are never any mandatory monthly principal or interest payments. However, you may make a payment at any time with no prepayment penalty.
Your home must be debt free to qualify – FALSE!
see more: http://www.fiftyplusadvocate.com/archives/9991
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