Wisconsin Reverse Mortgages: 3 types of mortgages
Three Types of Reverse Mortgages
By [http://ezinearticles.com/?expert=Milos_Pesic]Milos Pesic
Reverse Mortgages were created with the purpose of giving retired Senior Citizens, age 62 or older, a steady income. The senior citizen must also live in his/her home. This income is derived from the equity of the home by a lender. The lender is not reimbursed until the time the home is sold. One caution about reverse mortgages is that the APR on reverse mortgages is usually higher than that of a traditional mortgage. There are three types of reverse mortgages.
The first type of reverse mortgage is Single Purpose reverse mortgage. Single Purpose reverse mortgages are usually granted to those with low to moderate incomes usually by the government. The purpose of this type of mortgage is to help the homeowner pay for things involving the home and property such as taxes, improvements, and/or repairs.
The second type of reverse mortgage is Home Equity Conversion Mortgages (HECM) also known as federally insured reverse mortgages. This loan is backed by HUD (Housing and Urban Development). This type of loan is pricier than the Single Purpose loan but does not require single purpose use. HECM loans require that you meet with a counselor to discuss costs, risks, and possible alternatives including choosing one of the other two types of loans.
The third type of reverse mortgage is proprietary. The companies that have created them insure these loans. They are very similar to the HECM reverse mortgages in that they are pricier than the Single Purpose loans and follow the same guidelines in determining who qualifies for one and how much. Proprietary reverse mortgages differ from HECM loans because they do not require meeting with a counselor before applying for one.
Both reverse mortgages however determine the amount you may borrow from assessing factors such as age, home value, location, and interest rates. To determine which reverse mortgage is right for you, you should contact a loans officer knowledgeable of reverse mortgages or a HECM counselor.
Milos Pesic is a mortgage agent and owner of a highly popular and comprehensive Loans and Mortgages informational web site. For more articles and resources on different types of mortgages and loans, mortgage refinancing, mortgage lenders and brokers and much more, visit his site at:
=> http://mortgage.need-to-know.net/
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Wisconsin Reverse Mortgages: Reverse Mortgage Lenders
Reverse Mortgage Lenders
By [http://ezinearticles.com/?expert=Eddie_Tobey]Eddie Tobey
Reverse mortgage lenders are agencies, either nonprofit or governmental, offering reverse mortgages to senior Americans. A person who has reached the age of 62 and owns a house is eligible to apply for a reverse mortgage. Reverse mortgages are authorized by the Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA).
There are basically three types of reverse mortgages: single-purpose, federally insured and proprietary reverse mortgages and lenders vary with these types. In the first type of mortgage, the reverse mortgage lenders are nonprofit organizations or state and local government agencies. The federally insured Home Equity Conversion Mortgage (HECM) is provided by the US Department of Housing and Urban Development (HCD). This is the only reverse mortgage where the lender is the federal government. The third category of mortgage is private, and the lenders are mainly private companies.
Reverse mortgage lenders offer payment to the borrower either as a one-time lump sum or through regular monthly payments. The reverse mortgage lenders offer the payment based on the value of the home. The repayment has to be done when the owner moves from his home or sells the property. If the borrower passes away the amount has to be paid by the heir, or the lender will sell the property to recover the loan amount and interest.
Non-federal loans are provided by a number of organizations employed in lending. Some of the leading reverse mortgage lenders include National Reverse Mortgage Lenders Association (NRMLA), and American Reverse Mortgage Corporation. It is best to consult a counselor and know about the most suitable reverse mortgage schemes available before applying for one. [http://www.e-reversemortgages.com]Reverse Mortgages provides detailed information on Reverse Mortgages, Reverse Annuity Mortgages, Reverse Home Mortgages, Benefits Of Reverse Mortgages and more. Reverse Mortgages is affiliated with [http://www.e-secondmortgages.com]Second Home Mortgages.
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Wisconsin Reverse Mortgages: Funding Retirement
Reverse Mortgages - Funding Retirement
By [http://ezinearticles.com/?expert=Sergio_Haros]Sergio Haros
With people living longer and longer, funding retirement can become a stressful situation. Reverse mortgages can help home owners avoid worries about cash flow.
Reverse Mortgages
Reverse mortgages are essentially a method for turning the equity in your home into cash. Although there are various options, a typical reverse mortgage will provide you with a lump sum, monthly payments or a credit line based on the equity in your home. The mortgage will have a term of a certain number of years. Instead of making payments on the loan, the bank will become the owner of the percentage of your equity applied for the loan at the end of the term.
Reverse mortgages are only available to older applicants. Every person listed on the deed of the home must be 62 years of age or older. You must also use the home as your primary residence.
The decision to pursue a reverse mortgage can be a tricky one. The biggest issue is an emotional one. We are all mentally trained to buy a home and try to build equity over the years. With a reverse mortgage, we are making the mental leap to actually reduce the equity in our homes. While this may sound like a sensible method for using the nest egg equity, it makes you, me and everyone very nervous.
For some seniors, the reverse mortgage decision makes sense while it doesn’t for others. To limit the potential for problems and scams, banks are required to have senior applicants meet with unbiased third parties to determine the benefits and downside of using reverse mortgages.
If you or your parents have reached retirement age and are facing cash flow problems, you need to become flexible in dealing with finances. Reverse mortgages may be one flexible option that makes sense for your particular situation. After all, you can’t take the equity in a home with you.
Sergio Haros is with Great Western Mortgage - [http://www.gwhomeloans.com]San Diego Mortgage Brokers - providing San Diego home loans. Great Western Mortgage is a [http://www.gwhomeloans.com/services.html]San Diego mortgage company writing San Diego mortgages and [http://www.gwhomeloans.com/homeequity.htm]San Diego refinance and home equity loan.
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