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Reverse MortgagesReverse mortgage loans are specifically targeted home loans that allow for seniors to access the equity in their home to supplement their income, pay off other debts and eliminate their house payments. These loans are only for individuals over the age of 62. This type of loan is designed for seniors over the age of 62 who have equity in their homes, but may need to improve their cash flow. Most reverse mortgage today are insured through the FHA, and are commonly referred to as HECM mortgage (Home Equity Conversion Mortgage). Qualifying for a reverse mortgage is based on three main factors, the borrower’s age, value of the home and loan program they choose. One of the unique benefits of reverse mortgages is that it may allow the homeowner to create a monthly income stream from the properties equity. Essentially they receive a lump sum or monthly payments out of the homes equity. There are other key benefits with reverse mortgages, such as the ability for a homeowner to eliminate making mortgage payments, as the loan interest is deferred on the back end of the mortgage. A key benefit to the home owner is that if they borrow more money that the homes ultimate selling value they, or their heirs are not responsible for paying the lender back the difference. Lenders do not require minimum credit scores or income to qualify, but finding a lender who offers a reverse mortgage may take some homework as not all lenders offer this specialty loan program. Â |
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Reverse Mortgage Rates & Lenders By State
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Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho |
Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri |
Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania |
Rhode Island South Carolina Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming |
Rates, News & Advice Articles
June 13, 2011
The stock market tried to mount a rally on Monday, but finished the day relatively flat, a growing signal that the pessimism in the market may be around to stay for the summer. The DOW was up almost 100 points in early trading action as investors were looking to buy into some bargains from the sell...
QRM Yet Another Federal Blunder In Fixing The Housing Market
QRM – Qualified Residential Mortgages is probably the dumbest idea the government has rolled out in the past 24 hours. An idea whose origination stems from the colossal collapse of the economy and U.S. housing markets would ensure the collapse of the American Real Estate Market. The simple economics...
June 4, 2011
The continued decline in stock prices, weakness in housing and the employment markets over the past sixty days has very few silver linings. The one area that has benefitted from the market changes is the mortgage market, where fixed home mortgage rates have continued to improve. Loan rates dropped to...
May 26, 2011
May has been a great month for the mortgage market as long term interest rates have moves substantially lower this month following a dip in bond yields. The ten year treasury bond move below 3.1 this week, over seventy basis points off of its high levels of the year. The correlation to fixed mortgage...