Yes it allows! The idea of the reverse mortgage loan is to help seniors, whos living conditions have changed. These changes can be financial ones or family issues.

Main reasons to changes are the decrease in the incomes and the children, who have moved away. I will go through how does a reverse mortgage work, when a senior wants to change a home.

1. The Need To Downsize Your Home.

This is one typical need, when the children have moved away and a senior is living alone in his home. Many seniors cannot anymore maintain big houses and see them too expensive.

When a senior thinks how does a reverse mortgage work, the downsizing is one of the many benefits. To downsize brings another great benefit. The living costs will decrease, because modern flats and houses are more economical ones. A senior can also equip his apartment or house with new aids, which are especially planned for senior people.

2. You Can Move Closer To The Friends.

How does a reverse mortgage work? One benefit is, that it offers a chance to move closer to your friends and at the same time to improve your financial situation. In this case a senior can get two new benefits, which both give him more money every month.

3. You Can Get Lower Monthly Expenses.

A need to buy a new home comes very often from the financial situation of the senior. He just have to change into cheaper home. But how does a reverse mortgage work in this case?

Well, actually it offers two potential benefits. A benefit from the cheaper home and a benefit from possible cheaper interest rate. These both benefits mean lower monthly expenses, not only as to the loan management but also as to the living costs. The smaller and modern homes are more economical ones and thus lowers the living costs.

4. The New Reverse Mortgage Home Purchase Loan Helps.

This new rule came effective in January 2009. It helps especially those seniors, who have bad credit information or not sufficient monthly incomes, or both. There are several senior Americans, who want to move closer to their friends or relatives or just to downsize their homes.

The normal reverse loan does not offer this opportunity, but the new reverse mortgage purchase loan does.

It also offers an opportunity to make some extra income, because the new rule determines, that when you apply for the new reverse mortgage purchase loan, the appraised value of your present home will be used, when the down payment will be decided. You can even avoid the down payment. This new reverse mortgage purchase loan is federally insured.

Since the Reverse Mortgage for seniors program is all the rage these days, let’s take a look at what is required to qualify for and to get a reverse mortgage. In the United States, a person must be at least 62 years of age and own their home to qualify for a reverse mortgage.

A reverse mortgage allows you to convert the equity in your home into a lump-sum payment, monthly income, or a line of credit. Why would you want to do that? Well, it can be a useful strategy in retirement, if you want some extra income. It’s called “reverse” because it reverses the direction of the payments: instead of building up equity in your house by putting the money in, you actually reduce equity in the house by taking money out.

Like most loans, you will pay an origination fee, appraisal fee, title fee, escrow fee, recording fee, and a monthly servicing fee. These fees can be included in your loan balance, if there is enough equity available. No payments are made on the loan until you no longer occupy the home as your primary residence. When you move or sell your home, the loan balance is due and payable. However, the loan balance is never allowed to exceed the value of your home.

There are things that do not affect eligibility for a reverse mortgage, like Income, Credit History, Discharged bankruptcy and health of the homeowners. You might be asking, How is my equity determined? The allowable equity is calculated based on three factors. First the youngest borrower’s age, Secondly the appraised value of your home and third the FHA maximum loan limit for your country.

To ensure that you enter into a reverse mortgage with your eyes fully open and to ensure that you are not taken advantage of or scammed, there is a Federal requirement that you must obtain financial counseling from a source that is approved by the Department of Housing and Urban Development (HUD). Do not discount this counseling. It is very valuable and can usually be obtained for free or at a very low cost. It is best that you get such counseling from an independent source.

Reverse mortgages have helped hundreds of thousands of homeowners improve their quality of life in retirement. A Reverse Mortgage can help you retire more comfortably. It can provide you with money when you need it most. No Monthly Mortgage Payments, Easy Qualification, Tax-Free Money and No cash needed for closing costs. Can it get any better? If you’d like to find out how much money you qualify for and if you’re eligible, give us a call at (800)630-0650 and we’ll be more than happy to answer all your questions.

Tim Jacobs
Golden Years Mortgage Solutions
Your Money…When You Need It
www.GoldenYearsMortgageSolutions.com
(800)630-0650
tim@goldenyearsmortgagesolutions.com

Tim Jacobs @ Golden Years Mortgage Solutions www.GoldenYearsMortgageSolutions.com  (800)630-0650 tim@goldenyearsmortgagesolutions.com Golden Years Mortgage Solutions is a reverse mortgage approved FHA Lender. We’ve helped thousands of senior homeowners solve their financial problems. Our agents and brokers collectively have over 60 years of experience in Reverse Mortgage Loans and general financial services, including managers who are industry pioneers with more than 12 years of reverse mortgage experience. Our dedication to providing financial solutions for seniors is evidenced by the number of referrals that come from our existing clients.

Many of the seniors have the same vacant reaction once they heard the term reverse Mortgage, but that’s not how it has to be. Reverse mortgages are not inherently complicated and scary, let me enlighten you with reverse mortgage.

The concept behind a reverse mortgage is simple, it enables senior to take the equity in their homes and convert it into cash. This concept is sometimes referred to as “The loan that pays you” A reverse mortgage does not require borrowers to make any payments to the lender until he or she sells the home or passes away.

There is no monthly payments, no annual payments, nothing due to the lender. Furthermore, instead of making a monthly payment to a lender, many borrowers choose to receive a monthly payment from the equity in their home. For example, a borrower might decide to receive $1,000 a month every month for the rest of her life. Other borrowers might choose to receive a large lump sum payment. Still others might keep the money in a credit line that they can draw upon as they need it. The method of payments to you is at the borrower’s discretion.

Like all loans, reverse mortgages have costs. A major cost is the interest you pay (or don’t pay) on borrowed money, and there may be other costs as well. Most costs can be bundled with the loan so you do not pay out of pocket. Many of the same costs that someone pays to obtain a home purchase loan, or to refinance their existing mortgage, apply to reverse mortgages too. You can expect to be charged an origination fee, up-front mortgage insurance premium (for the FHA Home Equity Conversion Mortgage or HECM), an appraisal fee, and certain other standard closing costs.

In most cases, these fees and costs are capped and may be financed as part of the reverse mortgage. Some of the most common reverse mortgage fees are lender fees, Origination fees are related to establishing your loan. The exact use can be unclear, but the fee ultimately compensates your lender or broker for putting your loan in place. The appraisal fee pays for somebody to do an appraisal on your home. An appraisal is an investigation into the value of your home. The appraiser gives the lender an idea of how much your home is worth. The home’s worth helps determine how much money you can receive. Next are mortgage insurance, title search and insurance, then Credit report fees and ongoing service fees

Everything has a cost. Just know your choices and the total price before committing. Reverse mortgages have helped hundreds of thousands of homeowners like you; improve their quality of life in retirement. A Reverse Mortgage can help you retire more comfortably. It can provide you with money when you need it most. No Monthly Mortgage Payments, Easy Qualification, Tax-Free Money and No cash needed for closing costs. Can it get any better? If you’d like to find out how much money you qualify for and if you’re eligible, give us a call at (800)630-0650.

Tim Jacobs
Golden Years Mortgage Solutions
Your Money…When You Need It
www.GoldenYearsMortgageSolutions.com
(800)630-0650
tim@goldenyearsmortgagesolutions.com

Tim Jacobs @ Golden Years Mortgage Solutions www.GoldenYearsMortgageSolutions.com  (800)630-0650 tim@goldenyearsmortgagesolutions.com Golden Years Mortgage Solutions is a reverse mortgage approved FHA Lender. We’ve helped thousands of senior homeowners solve their financial problems. Our agents and brokers collectively have over 60 years of experience in Reverse Mortgage Loans and general financial services, including managers who are industry pioneers with more than 12 years of reverse mortgage experience. Our dedication to providing financial solutions for seniors is evidenced by the number of referrals that come from our existing clients.

If you are 62 and above, you can consume a reverse mortgage loan to buy a new home, as well as refinance your existing home. It even provides you the opportunity to pay off your existing mortgage or acquire a new home using the same mortgage you currently own. A reverse mortgage gives you complete home ownership, and you are not liable to any mortgage payment for life! What more can one want in this critical downturn situation?

Here are some reasons that’ll make reverse mortgage the best choice for you:

Home Ownership Retains With You; With a reverse mortgage, you can reside in your own home, and not only this you can even retain your home ownership with a reverse mortgage.

No Monthly Payments; Have you ever thought of a mortgage loan that requires no monthly payments? Yes, reverse mortgage is just that loan you can get without having to pay a single monthly payment as long as you live in that house. You even don’t have to pay back the loan unless you permanently move out or pass away.

No Tax Deductions; Money that you receive from your reverse mortgage is not considered as your income. Therefore, it is tax free and will certainly not influence your social security or medical benefits.

Liberty To Use Money; With a reverse mortgage, you have the flexibility to do whatever you want with the money you receive. There are simply no limits! You can use the money for medical expenses, home improvements, paying off your current debts, entertainment purposes, supporting a child’s study, or merely raising the quality of your life. Many people use reverse mortgage as a financial backup in case of some sudden emergency.

Choice to receive cash; With reverse mortgages, you can even choose your payment options i.e. how would you like to receive the cash according to your personal needs. You can select to receive cash as lump sum, or you can receive in monthly payments, or you can get a line of credit—and lastly, you can opt for a combination of any of these. This shows the flexibility of reverse mortgage in terms of payments.

If you are an elderly homeowner seeking to benefit from reverse mortgages, consult our professional Reverse Mortgage Company, serving senior US citizens from quite a long time. We will first identify your loan qualifications and then we’ll fully assist you with the reverse mortgage plan that suits best with your needs.

Reverse mortgage lets you cash-out the equity in your home without having to sell out. How?

A reverse mortgage is a loan that all seniors and couples above 62 can obtain against their homes. You need no certain income or medical criteria to qualify for a reverse mortgage, what you only need is to possess a home of your own. This loan requires no repayment whatsoever as long as you live in your house and don’t leave it due to a sale out, death, or permanent shift.Reverse mortgage benefits keep you from the worries of a regular mortgage as you are exempted from paying any monthly installments; this even diminishes your chances of losing your home due to non-payments.

The money achieved through reverse mortgage provides a sense of security to the senior citizens to pass their retirement years with peace. Cash can be received in a lump sum, monthly installments, line of credit (whenever you require the money), or any chosen combination these. This money can be used in any way you desire, it can be used to pay off your current mortgage or debt, home improvements, medical bills, education, travel, prevent foreclosure and much more. In a reverse mortgage, the lender pays YOU instead of you paying to the lender. This overturns the whole situation where you not only retain your home ownership, but also receive cash to spend the last days of your life with pleasure and security.

Many seniors are resilient towards reverse mortgage products available in the market, but the reason could be their ignorance about these kinds of loans. People think it’s nothing but the lenders victory in the end, because when you die they take your home and make extra bucks out of it, plus your heirs are left with nothing after you. Firstly, it’s not true! But even for a second if we do consider this true then it’s not such a big deal if you were able to take the cash before you die and do all those things you always wanted to do in life.

Now there is another angle to this loan which you didn’t know before, the true angle — if you are not availing a reverse mortgage just because your heirs will be left with nothing after you and the home will be taken away from them, you really don’t have to worry! Even if you break the bucket, your inheritors can pay off your loan and preserve the home ownership. This way the home will remain within the family.

The size of reverse mortgage you receive depends upon many factors including your age, worth of your house, current interest rates etc. So, the upshot is to gain all the information you can before opting for a reverse mortgage. It would be wiser if you consulted a reverse mortgage specialist to review your entire situation and suggest you the best options you have in reverse mortgage loan.

The reverse mortgage cost is formed by several items, which I go through in this article point by point. You may remember, that the final costs and fees will be calculated along your special situation and needs.

1. A Typical Reverse Mortgage Cost Is Appraisal Fee .

The responsibility of the appraiser is to assign a current market value for your home. The fee, which the appraiser takes varies from $ 300 to $ 400. Another important job is, that the appraiser checks, that your home has no bad structural damages, like leaky roof or termite damages.

Your home must fulfil the home safety codes, so that the reverse mortgage agreement can be made. If the damages must be repaired, the appraiser has the legitimate right to make a new visit and to check, that the repairs fulfil the code.

This another check will cost between $ 50 to $ 75. This reverse mortgage cost, actually both of them, can be made after the reverse mortgage loan agreement is done and you can cover these costs with your new loan.

2. The Origination Fee.

This reverse mortgage cost is meant to cover such costs, which the lender has to pay, like his overhead costs and marketing costs. One example: in HECM program, which is the most popular in US, the origination fee is 2 % on the initial 200.000 maximum claim amount and 1 % on the balance after that with a cap of € 6.000.

3. The Mortgage Insurance Premium.

In HECM program the borrower must pay an obligatory mortgage insurance premium. This reverse mortgage cost protects you in two ways. If the servicer, the company which manages your loan, goes into bankruptcy, the government step in and guarantees that you will get the funds, which belong to you.

Or if the selling price of your home cannot cover the full amount of the reverse mortgage costs, the difference between the costs and the selling price will be paid from this insurance. You will never owe more than the value of your home and your other assets will never be used for reverse loan back payment.

The cost of the mortgage insurance equals to 2 percent of the maximum claim amount, or home value, whichever is less, plus an annual premium thereafter equal to 0.5 percent of the reverse mortgage loan balance.

4. The List Of The Closing Costs.

A. Cost of the credit report. Determines every federal tax lien or other judgment, which is handed down against the borrower. Cost: Usually under $20
B. Cost of courier. This fee covers the expenditures of every courier mailing of documents between the title company and the lender or loan investor. Cost: Usually under $50.

C. Cost to prepare documents. This fee is paid for preparing the closing documents. Includes the mortgage note and other recordable items. Cost: Usually $75-$150
D. Cost of escrow, settlement or closing. Generally covers the title search and several other required closing expenditures. Cost: Usually $150-$450
E. Cost of the flood certification. Shows whether the property is located on a federally determined flood plane. Cost: Usually under $20

F. Cost of the recording. This covers the jobs to record the mortgage lien with the County Recorders Office. Cost: Usually $50-$100
G. Cost of title insurance. The idea of this insurance is to protect the lender or the buyer against the losses from disputes over the property ownership. Depends on the loan size. The bigger loan you take, the bigger is the cost of the title insurance.
H. Cost of pest inspection. The idea of the pest inspection is to show, if the home is infested with the termites or alike. Cost: Usually under $100 .

I. Cost of the survey. This shows the boundaries of the property. Is normally ordered to make sure that the neighbouring property has not inadvertently encroached on the reverse mortgage borrowers property. Cost: Usually under $250.

5. Service Fee Set Aside.

Federal regulations allow, that the servicer can charge a monthly service payment, which varies from $ 25 to $ 35. This cost covers the costs, which will arise from servicing your account. They will be paid, when the loan will be closed and can rise to several thousands of dollars.

As you see, the reverse mortgage cost is actually a list of different costs and fees. One useful and helpful thing is to visit the federal counselor, who is an expert in these costs and can tell, how the costs and fees behave in your particular case.

When it comes to helping our aging loved one with financial decisions, we want to make sure we take time to understand all aspects of the transaction. One option for seniors that is becoming very popular is to use the equity from their home to increase their cash flow. Some seniors need to pay off old home equity loans; others have credit card debt that they would like to eliminate. Some elderly parents need additional cash flow to pay in-home caregivers, and some need the money to simply be able to afford to pay their daily living expenses. Regardless of the reason, a reverse mortgage is a big decision for seniors and their family members.

Let me offer some background, For the purpose of our discussion, a reversed mortgage is designed specifically for homeowners who are age 62 and older. Through this product, you can receive loan money from your home in the form of a lump sum, regular monthly checks or a line of credit. The money is typically repaid with interest when you sell your house, permanently move away, or pass away.

Reverse mortgages are regulated by the federal government (HUD and FHA). This is a “non-recourse loan,” which means that the heirs of the seniors are not responsible for repaying the loan. In fact, a reverse mortgage is a loan that does not have to be repaid unless both homeowners (assuming a couple) leave the home permanently, or pass away. No monthly payments are required. The senior is the one who gets paid.

The money the elderly receive from a reverse mortgage is tax free, and does not interfere with SSI or Medicare benefits. For the elderly parents that are having trouble making ends meet, this can be a life saver.

You might be wondering, what’s the difference between a reverse mortgage and a bank home equity loan. With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

You don’t make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes, insurance and other conventional payments like utilities. With an FHA HECM you cannot be foreclosed or forced to vacate your house because you “missed your mortgage payment.”

Now that you understand the reverse mortgage you are now thinking how much money you can get from your home. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

Reverse mortgages have helped hundreds of thousands of homeowners like you; improve their quality of life in retirement. A Reverse Mortgage can help you retire more comfortably. It can provide you with money when you need it most. No Monthly Mortgage Payments, Easy Qualification, Tax-Free Money and No cash needed for closing costs. Can it get any better? If you’d like to find out how much money you qualify for and if you’re eligible, give us a call at (800)630-0650.

Tim Jacobs
Golden Years Mortgage Solutions
Your Money…When You Need It
www.GoldenYearsMortgageSolutions.com
(800)630-0650
tim@goldenyearsmortgagesolutions.com

Tim Jacobs@GoldenYearsMortgage Solutions www.GoldenYearsMortgageSolutions.com (800)630-0650 tim@goldenyearsmortgagesolutions.com Golden Years Mortgage Solutions is a reverse mortgage approved FHA Lender. We’ve helped thousands of senior homeowners solve their financial problems. Our agents and brokers collectively have over 60 years of experience in Reverse Mortgage Loans and general financial services, including managers who are industry pioneers with more than 12 years of reverse mortgage experience. Our dedication to providing financial solutions for seniors is evidenced by the number of referrals that come from our existing clients.