Reverse Mortgages: Tapping Equity for a Second Home
Article by 2ndhome Specialist
Do you have clients who want to buy a second home but who are hesitant given the current market conditions? Now you can offer your clients another solution when it comes to financing their dream vacation home,. The answer: reverse mortgages.
New data from the Department of Housing and Urban Development (HUD) reveals that more than 300,000 seniors have used the federally insured Home Equity Conversion Mortgage or Reverse Mortgage, to convert the equity in their homes into cash without having to move. Even though this is a significant number, it represents only about one percent market penetration. In the first quarter of 2007 alone, there was a billion increase in senior home equity. This increase was reflected in a 0.4 percent increase in the Reverse Mortgage Market Index (RMMI) to 205.6 from 2o4.7 in the previous quarter.
Reverse Mortgage is Equity Home Loan
Article by Robin Brain
For many, reverse may be loans for the desperate while for others it could be a trade for the home ownership. For yet others it could be free money received from the government or such other entitlement programs. But in reality, reverse is none of these.
What is Reverse?Broadly speaking reverse is just an equity home loan and is aimed at deferring the interests. It is not refinance as some people think but a way of deferring the repayments till the maturity of the loan.
Should a 72y/o widow w/no other assets sell home pay off reverse mortgage take remaining equity and rent apt?
Home is paid off except for reverse mortgage. Home’s market value is more than enough to pay off reverse mortgage and have more than adequate income for life expectancy.
“Can I have my mom, add my name to her deed, so I can get an equity loan to move her to Florida?
My mom is disabled, she has medicare, and some form of Medicaid, there are no liens on her home., she has no cash assets. I need to move her to Florida. Her credit is poor., and we don’t want to take a reverse mortgage to get funds to move her to Florida.
What Is Home Equity Conversion Mortgage Counseling
I am sure, that you have lots of personal questions about what is home equity conversion counseling, and those things I cannot handle in this article. You have to remember, that some seniors have met marketers, who have tried to sell reverse mortgages, which exceed the needs of the seniors.
The official reverse mortgage counselor gets the authority from the Federal Government and, this is important, he will not sell anything, he only guides you.
The ?new Congress? Fiddles Away Valuable Time? as the 275,000 Insurable Limit for Home Equity Conversion Mortgages (reverse Mortgages) is Fast Approac
While the ‘New Congress’ puts a full court press on the first 100 hours of control, almost three weeks have been spent on a “non-binding” resolution loaded with political positioning and posturing for future replays. High fives all around for that. The minimum wage plan has not passed after much conversation and no action. If this implosion continues in both houses nothing will be accomplished. Election run up time in a lame duck presidency gives cause for Congressmen and Senators to show up in roller blade gear. With helmets, elbow pads, kneepads and thick gloves all around in full dress in preparation for all the sharp elbows and cross body blocks to fight for positions that are nearest to TV cameras for the evening news cycle. This gives the appearance of a lot of motion but in the end no real action. Lip service abounds. With moistened fingers heisted in the prevailing winds to gage the most recent polls, positions change like a fresh pair of socks while the public remains not amused. When Congressmen and Senators job performances are rated below ambulance chasers, something is afoot. The old bromide of “reaching across the aisle” again has proven to be a joke. Once again the minority in the Senate can bring things to a slow grind. Still looking for some forward thinking leadership. How long has it been since the last one?
Equity and Reverse Mortgages
The best thing about a reverse mortgage is that it allows a homeowner to convert the equity on their home into cash. This is helpful for any unexpected expenses that might come up, or just for a retiree to have a more active lifestyle. The reverse mortgage is much like a home equity loan in that the money can be paid to the homeowner in a large sum, monthly payments, or as a line of credit. Unlike a traditional second mortgage or a home equity loan, however, no repayment is required until the borrowers no longer use the home as a principal residence. Reverse mortgages are perfect for those that have been saving up the equity in the home for years.
