Reverse Mortgage Information Center

What if you want to do a loan on your home, but you know the home needs repairs to qualify?

Fixing the deficiencies on your property is normally required on traditional loans. Reverse mortgages are unique in the way they allow you to do the loan first and then use that money for the repairs. So you can cash in some equity on your home to do the repairs.

Let’s look at some very common scenarios: 1. You have a deck that has had indoor outdoor carpet on it (you know, the green carpet that looks like grass), and the boards under it have dry rot. 2. Or maybe the southern exposed side of the home has very little, if any paint on it. 3. Sometimes, a tub or toilet area has a squishy floor indicating dry rot.

The required repairs for these problems can be completed after the loan is closed. In fact, any repairs that do not involve safety or health concerns can be done after you loan closes. Your property not having adequate water is an example of a repair that can’t wait, but roofing and dry rot repairs are common and should not be a problem.

How does the lender handle these repairs to make sure they get done? I am glad you asked. You will have to get a contractor’s bid for the repairs and then add 50% to that bid. The extra 50% is to cover any miscalculations to make sure that there is enough money to cover the costs and that you don’t run short. That amount of money is held in escrow, commonly called an “escrow hold back”. Once the repairs are completed, the lender will pay the contractor and refund the remaining money to you.

What if you want to do the repairs yourself? You can. You will still need to have the contractor bids though, and the escrow hold back is still required. The lender is looking for a professional estimate of what the repairs will cost.

Let’s summarize what you just learned: The proceeds of your loan can be used to do the repairs, making a reverse mortgage a unique loan. The escrow holdback will be required even if you choose to do the repairs yourself.

One of the first steps in knowing what you can do, is knowing how much you qualify for. Use our free reverse mortgage calculator to quickly estimate how much money is available to you. There is also plenty of reverse mortgage information that is helpful in becoming, educated before you make your decision.

Redwood Financial Services wants to make sure you have all the facts, so you can make an informed and educated decision. The five most common questions are listed below so you can start understanding the reverse mortgage loan.

1. Can I do a reverse mortgage if I owe nothing on my home? This may sound obvious, but absolutely. This allows for more available cash to take care of any non mortgage obligations you may have.

In the event your home is not paid off, you still could qualify for a reverse mortgage. Your mortgage will have to be paid off first (with the reverse mortgage) then any remaining proceeds can be taken as a line of credit, monthly income, or a lump sum.

2. Can I do a reverse loan if I am behind on my taxes? This is a great reason to use a reverse mortgage. It will allow you to get caught up on any past due bills and get those creditors off your back. You could consider deferring your property taxes if you live in Oregon, after the loan closes.

3. Do I have to give up the title to my home? You will use your home as collateral for the new loan. You do not give up your home. You retain all the rights to refinance or sell, and the remaining equity is always yours or your heirs’.

4. Do reverse mortgages allow me to purchase a home? In January of 2009, there was a program introduced to allow a purchase of a home with a reverse mortgage.

5. What if I use up all my equity? When considering property appreciation and the low rates of a reverse mortgage, it takes quite a while to “use up” your equity. On an average it will take 20-30 years to go through it. In the event you actually use up all the equity in your home, you will never be forced to move. You’re protected with a place to live for the rest of your life.

Stop by our website if you would like to see more frequently asked questions and answers about reverse mortgages. You will find a large amount of educational information for free. Get informed before you make your decision.

If you’re a Florida retiree and you’re having trouble making ends meet you may want to look into taking out a reverse mortgage. The equity that you have built up in your home over the years may be your answer to a more comfortable retirement. These flexible home equity loans allow you to choose how you want the funds distributed and don’t require repayment for as long as you continue to use your home as your primary residence. The advantages of these loans can make your retirement years much more enjoyable than you’ve ever imagined.

How Reverse Mortgages Work

The amount you can borrow with a reverse mortgage is based upon three factors: your age, current interest rates and the appraised value of your home. You can choose to receive your reverse mortgage funds in a lump sum, monthly payments or you can open a line of credit to draw upon at your choosing. When you apply for a reverse mortgage, your lender will take an appraisal of your home and the amount you can borrow will be determined based upon this valuation. There is very little out of pocket expenses with reverse mortgages as you can finance most of the closing costs into the loan. The loan will not come due and no repayment will be required as long as you continue to reside in the home as your primary residence.

Control Your Retirement Budget More Carefully

As a senior, you know that it can be difficult to create a steady budget during retirement. Using the built in home equity from the house that you already own can allow you to create a budget that provides you with the comfort that you need. Once you have taken out a reverse mortgage, you are not required to withdraw any of those funds at any specific time. You can choose to use the funds as a sort of savings account to use in emergencies, or you can choose to pull all of the money out at once and pay off outstanding debt. The money is yours to do with as you see fit.

Increase your Monthly Income

Many seniors enjoy the flexibility and convenience of receiving their loan funds in monthly installments. Reverse mortgages can supplement your retirement plans, pensions and social security payments. Your reverse mortgage broker can explain all of these options to you and show you which plan is best to meet your retirement needs. The extra income a reverse mortgage can provide can mean the difference between struggling financially and enjoying your retirement years in Florida.

Live out Your Years in Florida Comfortably

Reverse mortgages truly reward those who have been thrifty in their early years and paid down their mortgages. During your retirement years, your home can truly pay you back in every sense of the word. Since reverse mortgages do not require repayment as long as you continue to live in your home, they allow you to truly enjoy your home without worrying about your monthly mortgage payments . Your home equity pays for itself in many ways. So, to truly enjoy your retirement years, make sure you find out how much a reverse mortgage can benefit you.

If you’re thinking of financing your home with a reverse mortage, check out Reverse123’s site on Reverse Mortgage Information and Florida Reverse Mortgage Lender

Reverse mortgages allow you to access your home equity four different ways. We will examine those ways so you know how to access your reverse mortgage equity.

1. Lump Sum – You have the option of taking all the funds available to you at one time. You can use the money for anything you want, but the most common use is paying off the existing mortgage (if you have one) on your home.

2. Monthly Annuity – Not a true annuity, but a monthly amount of money that is guaranteed to continue as long as you or your spouse lives in the home. Wouldn’t retirement be more comfortable if you had a little more money each month? There is also a tenure option that gives you a larger payment for a specified period of time. More common though, is the lifetime payment.

3. Credit Line – If you don’t need the money today, and you want to have a reserve account for emergency, this is probably the option for you. There is no interest being accumulated unless you use the money. It will only be charged if you actually borrow it.

4. A Combination of the Above – You can customize your loan to combine any of the above options. If you need a small lump sum, a monthly boost to your income, and you want the rest to be in a line of credit, mixing and matching is the way to go. Additionally you can alter your plan anytime you want to get more monthly or get an additional lump sum for a small fee.

If you choose anything other than a lump sum, know that you will have to take the adjustable rate mortgage (ARM). There is only one option if you choose the fixed rate. It is a lump sum. You will have to draw it all when your loan closes.

Prior to committing to any reverse mortgage programs, make sure you have all the facts. Visit our website for more reverse mortgage information. There is also a free reverse mortgage calculator to see how much money is available to you.

Your mortgage is likely to be the largest loan you ever take out. At 30 years it will also be the longest loan you ever take out. When you consider those 2 points then it makes sense to take some time to learn at least the basics of the process that you will go through to get the loan that allows you to buy the house of your dreams.

A mortgage is the name given to the loans used to buy real estate, whether it is a single family home, a duplex or even a piece of land you would still be getting a mortgage. The mortgage uses the property as security, so if you stop paying the bank or mortgage lender they can take over ownership of your house or property against which you borrowed. This is one of the reasons why you should not buy a house that is more expensive than you can really afford.

Buyers generally have a decision between an FHA or conventional loan unless they are a military veteran in which case they may qualify for a VA loan. VA loans are the only 100% loans available today. FHA loans usually involve a small down payment while conventional ones are the toughest to qualify for if you have any credit issues.

Cash is king, thsi may seem a strange comment to make when you are looking to borrow money to buy a house, presumeably because you don’t have enough cash to buy one outright. The fact is that the more cash you have to use as a deposit the better you will be, the only way to get a 100% loan currently is to get a veterans loan. If you have never been in the armed forces then this option is not open to you, so you need to have a deposit. FHA loans can require as little as 5% while traditional loans are now often requiring a 20% deposit.

Knowing your debt is very important. If you have lots of small monthly payments going out to various loans, credit cards and store cards this may damage your credit. Pay the ones you can off, especially if they have a high or variable percentage charge. Showing that you are in control of the debt you have will make it a little bit easier to get the mortgage loan you need.

If you ever think about if a reverse compounding mortgage is the best option for your retirement situation? The hone of the manyst answer is that I can’t tell you for sure but I can tell you that it is one of the many option you should investigate.http://floridahomeloanreport.com

1. Getting a Reverse Loan for the Purpose of a Short Term Fix.

In instances where foreclosure is imminent, or repairs are needed to maintain habitability, for example, would be reasons to use a reverse mortgage short term. But as a general rule, you should consider a reverse mortgage as a long term solution. When you consider the fees that are associated with a reverse mortgage against the need for the money, you should be able to determine if it makes sense for you with the help of a trusted loan officer.

2. A Reverse Mortgage Can Affect Your Government Benefits.

Not really because of getting a Reverse Loan, but because of the impact it can have on your finances. The program we are specifically speaking of is Medicaid. If you have too much money in reserve, you can be disqualified. The way this can happen is by taking a lump sum of money that is needed for something like home repairs, but you put in your bank account first. If you don’t spend it when the new month rolls around, you could cost your Medicaid eligibility. Another way is if you take a monthly allotment and don’t spend it all each month. This will be a savings that long term could equal enough money in your bank account to disqualify you.

3. Doing Your Reverse Mortgage Through a New or Inexperienced Loan Officer.

It may be hard to believe, but bank loan officers don’t have to be licensed or trained to the States standards. On the other hand, mortgage brokers have very strict criteria set by the State to be allowed to do loans for the public. Virtually anyone can be a loan officer at a bank and experience is not necessarily a requirement. You could walk into a bank, apply for the job, and be taking applications in a very short period of time. It may be a bit biased, but I would prefer to deal with someone that is a trained professional, one that is licensed and can be held accountable to the State. Since the commission that a loan officer earns can be pretty high, it can tempt the younger, less experienced ones to overcharge in the hopes of making a big payday.

4. Avoiding a Reverse Mortgage Loan Because of Fear of the Unknown.

There are so many people afraid of a reverse mortgage for no other reason than they just don’t know who to trust. The facts seem too good to be true, so they shy away. What I would like to show is how to know what is true and how to make a smart decision. First off, there are too many “experts” in a field that they know nothing about. The amount of disinformation is almost overwhelming, even for someone who knows the truth. I have seen financial planners who will state that you lose your home when you do a reverse mortgage. I have heard several people say that you will leave excessive debt to your heirs. So here is a little advice that may soothe your concerns: First, try to find a loan officer that you feel you can trust. If you have an uncomfortable feeling about the loan officer, you should probably find someone else. You are not tied to the first person you talk to. Second, don’t listen to the advice of everyone out there. There is a great article (if I say so myself) called “Bad Advice From Good People about Reverse Mortgages”. Check it out if you want to see an article about how to qualify the person giving you the advice. The gist of it is; see if the person you’re seeking advice from actually knows anything. In the example above, the financial planner may be a genius about retirement money, but probably has never originated a loan. If you ask your kids for advice, which is strongly recommended, make sure they know what they are talking about. If they are not qualified to advise, have them attend your meeting with the loan officer. This also applies to you. I have seen people disqualify themselves because they don’t think they qualify. The best advice here is to ask a true professional in the field.

5. Moving Too Quickly During the Reverse Loan Loan Process.

It only takes about 10 minutes to teach you everything you need to know on a reverse Loan. But you will probably have questions that will make you more comfortable when you get the answers. Sometimes these questions take a little time to formulate, so don’t let your loan officer rush you into making a decision. Don’t mistake doing your loan quickly with pushing you to make up your mind in a hurry. Once you have determined you want a reverse mortgage, the process should be fairly quick. It will take about a month to a month and a half to get your loan closed.

6. Thinking That Being Older Will Get You More Money.

Bonus mistake: I know I said five, but this one came up while typing this. Waiting until you’re older is not always the best option. With rates being so low and terms being so good, it probably makes more sense to do the loan now rather than later. This is because adding another year or two to your age will get you a little more money. But, if the interest rates go up just a half of a percent, it could make thousands of dollars difference. The point is; Lower rates trump age, assuming all potential borrowers are at least 62 years old.

See more articles and blogs at Redwood Reverse Mortgage. David Prulhiere owns Redwood Financial Services and specializes in reverse mortgage education and loans.

Equity release schemes are schemes that can help you in having financial freedom by securely releasing equity from your house and allowing you to spend entirely as you, wish. Currently, there are three types of equity release schemes offered, as described below:

Lifetime Mortgages Scheme

It allows you to spend the loan amount by releasing equity from your property. usually, there is no monthly repayment to meet.

Advantages of lifetime mortgage scheme:

o This scheme allows you to pick up a bulk amount of cash with no monthly repayments.

o hold full ownership of your property

o This scheme is available to younger individuals (55+)|The scheme is for persons having 55+ age.

o Some plans of this scheme let you pledge a legacy for your family
Disadvantages of lifetime mortgage scheme:

o The legacy amount is thus decreased.

o The applied interest will be compounded and rise quickly

o Pre payment attracts early repayment charge.

Home Reversion Scheme

It is a type of equity release in which you sell the complete or a part of your house to a reversion scheme company in exchange for a huge amount of money (which is tax-free) with no monthly repayments and a assured lease of lifetime. You can stay in your home as long as you wish without any rent. If there is any change in your property value, then, you as well as your reversion plan company distribute the value, as per the percentage owned.

Advantages of Home reversion Scheme

o You have the flexibility to guarantee an inheritance.

o No regular repayments

o Profit is earned if valuation increases.

o Usually, when you are younger, you can build more money out of a home reversion scheme rather than lifetime mortgage scheme

o More money can be released when you grow older.

Disadvantages of Home reversion scheme

o Normally, you do not get the full market value of the share of your belongings you sell, since the reversion scheme company will offer you complete right to live in it without any rent, and the company won’t get back its fund for a number of years.

o This scheme normally can’t be reversed as you are selling a part of your house.

o A large numbers of reversion scheme providers do not guarantee further advances.

Drawdown Scheme

This scheme has the similar advantages and disadvantages as a common lifetime mortgage scheme, as well as some more that are exclusive to this type of equity release scheme. The major difference with a drawdown scheme is that you cannot ask for the full amount of money available to you, immediately. Alternatively, you choose on a maximum amount of equity you want to release, and withdraw the money in stages you want to.

Find out more about the best equity release schemes and equity release loans at onlineequityrelease.com

Seniors around the nation have new financing options for purchasing a home. By using a reverse mortgage to purchase a home, older borrowers can use existing cash savings or the money from the sale of their home to purchase a new home in Florida and around the country. The remaining purchase price of the home can be borrowed by taking out a reverse mortgage. This incredible loan eliminates future monthly mortgage payments.

The Florida HECM for Purchase makes it easy for borrowers to purchase a home with a reverse mortgage. Borrowers can use the proceeds to move to a new location or to downsize their primary residence to meet their retirement needs. Seniors could also conceivably sell their existing home and use the proceeds to buy a larger home financed with the reverse mortgage. The amazingly flexible product makes almost anything possible.

Purchasing a new home with a reverse mortgage is very similar to purchasing a new home using conventional financing. However, the loan process tends to be shorter and more simplified. Generally the amount of money a borrower is eligible to take out is based upon the home’s value, the age of the youngest borrower and the current interest rates. When determining the home’s value, the bank will generally use the lower of the appraised value, the FHA limits or the purchase price. The amount of money the borrower would need to provide at closing is the difference between the loan’s value and the amount of money the borrower is eligible to borrow, minus any closing costs. The appraisal, inspection and closing processes are almost exactly the same as in conventional financing.

The purchased property only needs to meet standard FHA requirements to be eligible for a reverse mortgage. Certain condominiums and multi-family dwellings are generally eligible. Single family homes are almost always eligible. Newly constructed properties are also eligible, however the building must have receive a certificate of occupancy by closing. In any event, the borrowers must be ready to move into the home within two months of closing.

Reverse mortgages are no more difficult to obtain than regular mortgages. In fact, in many ways they are much simpler. Borrowers do not need to meet any particular credit or income eligibility since there is no obligation to repay the loan as long as the borrowers continue to live in the home. They must continue to keep their taxes and homeowners insurance up to date, however. Another great benefit of the reverse mortgage is the non-recourse nature of the loan. This aspect of the loan means that a person can never owe more than their home is worth even if the home drops in value drastically.

Reverse mortgages will definitely grow in number over the coming decades. As more seniors reach retirement age and look to move into their retirement homes, expect to see more and more homes purchased with these loans. Financing a new home with a reverse mortgage and eliminating all monthly mortgage payments is certainly an attractive alternative for many on a limited income.

Before you purchase your new retirement home, make sure you check out Reverse123, information on Florida Reverse Mortgage and Senior Financing

Reverse mortgages are wonderful products that are available to seniors. These loans are available for homeowners who are 62 or older. They are neither handouts or scams. To the contrary, they are financial vehicles that allow seniors to tap into their hard-earned equity to meet retirement needs.

Benefit From the Equity That is Already Earned

The money that is lent in a reverse mortgage is based on the existing equity in a senior’s home. If a person has lived in a home for a long period of time and has paid the regular mortgage loan for years, the reverse mortgage can be looked at as a return on that investment. The money that comes from a reverse mortgage can replace the money that has been paid into a traditional mortgage payment during the normal ownership of the property. A reverse mortgage can free seniors from the worry of making regular mortgage payments for the rest of their lives.

Supplementing Retirement Income

Reverse mortgage proceeds can be distributed over a number of years. Although a lump sum distribution is available, it is not necessary. The borrower has the ability to manage their payments as they see fit. In this respect, the borrower is able to control the funds as needed. In many ways, this line of credit can be used as a savings account to protect the borrower from unexpected expenses and medical emergencies. Actually, the proceeds can be used for almost anything the borrower chooses.

Reverse Mortgage Basics

When a borrower decides to take out a reverse mortgage, the first step is usually to take an appraisal of the home to determine the level of the borrower’s equity. During the entirety of the loan, the borrower continues to own the property. In addition, the borrower is required to keep the taxes and homeowner’s insurance on the property current. As long as these requirements are met and the borrower continues to maintain the home as their primary residence, the loan will not become due.

When the Loan Comes Due

There is no obligation to repay the reverse mortgage as long as the borrower maintains the home as their primary residence. Upon the death of the borrower or once the borrower has been out of the home for more than 12 months, the loan becomes due. The loan can be repaid by the heirs in a number of different ways: they can pay the loan outright, they can refinance the mortgage with a conventional mortgage or they can sell the home and use the proceeds to repay the loan. In no event would the heirs ever be required to pay an amount in excess of the homes value.

Want to find out more about reverse mortgages, then visit Reverse123’s blog on HECMS.

Remortgage allows you to release some part of the property and you can enjoy the rest. In other words, a remortgage arrangement (with better terms and conditions) replaces an existing mortgage. You can opt for a different provider also. Remortgage plans are selected to cut off the excessive interest rates, lower payments or release money from the limited equity in your house. People release equity for their various need. The most normal reason for house owners who apply for a remortgage loan is having a less monthly mortgage payment. Remortgage facilitates release of your equity.

Let’s illustrate this remortgage scheme with an example: if your house is worth $ 300,000 and you encompass a mortgage of $ 200,000, so you have $ 100,000 (value of your house – value of your present mortgage) of equity in your house. If you decide to build an extension in your property for which you need $ 30,000, then, all you need to do is take out a new mortgage for $ 200,000 and with this you can use $ 30,000 to build an extension and the remaining $ 170,000 can be used to clear your original mortgage.

If you have not understood the mortgage structure for a while, there is possibility you may end up remortgaging to a lower interest rate than you are on at present. Thus, not only you will be boosting additional money, but you might use the money for monthly repayments of high interest credit cards or loan debts.

Advantages of Remortgage plans:

o The major advantage for some house owners is saving money. Less interest may be fruitful at times.

o The restrictions of the payments of mortgages can be made flexible thus, making it easier for payments and repair bad credits.

o You can use to renovate the house thereby raising the equity value and the rest money can be spent as required.

Accomplishing a remortgage plan is easy and is very identical to any other mortgage loan. The remortgage provider will go through the desired documents. Generally, this is inclusive of debts, income and expenditures and some times a house evaluation. Remortgage evaluation process is less then the initial process. The surveyor, assigned by the loan giving company, might simply have a look at the house and ask you some questions. Certain incidents may require thorough evaluation.

Find out more about remortgage equity release plans and equity release at onlineequityrelease.com