Financial Hardship in a Reverse Mortgage

Misconceptions of a Reverse Mortgage

Protecting Loved Ones From Financial Hardship

Because many consumers do not understand the long-term financial impact of reverse mortgages, the CFPB is issuing an advisory to help reverse mortgage borrowers. The advisory highlights three ways consumers who are the borrowers on the loan can help plan so that their surviving heirs are not harmed:

Verify who is on the loan: If two borrowers took out the reverse mortgage, they should check with the reverse mortgage company to make sure its loan records are accurate.

Plan ahead for the non-borrowing spouse: For consumers who took out a HECM reverse mortgage in the name of only one spouse before August 4, 2014, they should contact their loan servicer to find out if the non-borrowing spouse may qualify for a repayment deferral. If not, they should make a plan in the event the borrowing spouse passes away first. Couples with enough remaining equity could consider taking out a new reverse mortgage, but they will incur new loan fees. Some surviving spouses may also be able to pay off the reverse mortgage, or take out a traditional mortgage, perhaps with another family member. Many will need to plan for where they will live after the home is sold to repay the loan. If the loan was originated after August 4, 2014, new changes to the HECM program will allow the non-borrowing spouse, meeting certain conditions, to remain in the home.

Plan ahead for other family members living in the home: Consumers should make sure any children or other family members living in the home know what to expect when the reverse mortgage is due. If those members want to keep the home, the borrower should contact their reverse mortgage company to have them explain their options. They can also contact a HUD-approved housing counselor to explore their options.

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Top Complaints About a Reverse Mortgage

Misconceptions of a Reverse Mortgage

It is important that one understands how a reverse mortgage works and know what can and cannot be done. There sometimes is confusion between what one believes a reverse mortgage can do and the way the reverse mortgage functions. For example, many consumers, for example, struggle with understanding how quickly their loan balance will go up and their home equity will fall.

The top complaints about reverse mortgages include:

Distress about the inability to add new borrowers to an existing loan: Reverse mortgages prohibit spouses, heirs, and dependents from taking over the loan. This is because loan amounts are, in part, calculated using a borrower’s age and the loan repayment is triggered when the last borrower moves out or dies. This can be a problem for surviving spouses and children. Family members complained about not being able to be added to the loan so they could keep the home.

Frustration with runarounds when trying to pay off the debt: When the borrower dies, heirs can sell the home, repay the loan balance, or pay 95 percent of the property’s assessed value. Consumers complain that loan servicers do not provide a clear process to allow them to settle the debt.

Struggles with foreclosure due to issues with property taxes and homeowners’ insurance: Reverse mortgages require no monthly mortgage payments but borrowers are still responsible for property taxes and homeowner’s insurance. Nearly 10 percent of reverse mortgage borrowers are at risk of foreclosure because they have failed to pay these expenses.

Define a Reverse Mortgage?

What-is-a-Reverse-Mortgage

A reverse mortgage is defined as a special type of home loan that allows older homeowners to access the equity they have built up in their homes and defer payment of the loan until they pass away, sell, or move out. The loan proceeds are generally provided to the borrowers as lump-sum payments, monthly payments, or as lines of credit.

Most reverse mortgages today are federally insured through the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage (HECM) program, which means they must comply with the related regulations.

Here are some ways a reverse mortgage can help you:

Tenure

Receive equal monthly payments as long as at least one borrower lives in, and continues to occupy the home as your principal residence.

Term

Receive equal monthly payments for a fixed period of months that you choose. The amount of equity, and the number of months you choose to be paid will determine the amount of each payment.

Line of Credit

You can also use a Reverse Mortgage as a Home Equity Line of Credit (HELOC), taking unscheduled payments or installments, at any time, in any amount you choose, until the line os credit is exhausted.

Modified Tenure

Maybe you want a hybrid, or combination of one or more of these options? A modified tenure option allows a combination of a line of credit, plus scheduled monthly payments, for a s long as you remain in the home.

Modified Term

Similar to a modified tenure, a modified term allows you to structure a combination of a line of credit, plus monthly payments, for a fixed period of months determined by you.

Lump Sum

You can receive a single payment up to the maximum allowed, with no payments for as long as you live in the home.

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How a Reverse Mortgage Saved a Foreclosure

Reverse-Mortgage-Saves-Foreclosure

A senior citizen homeowner owned a home and got behind in their mortgage payments. Subsequently, a notice of default was issued by the lender and foreclosure proceedings were started. The homeowner had been living in his home over 25 years and have paid down considerably his mortgage but with retirement and a sudden increase in medical expenses he was not able to pay his mortgage.

Here were the challenges:

  • Senior was in foreclosure on his current home.
  • He wanted a home in a better area.
  • Senior had limited equity to re-buy after the distressed home was sold.
  • Bad FICO scores, bad mortgage history & limited retirement income
  • Current home had deferred maintenance.

Even though the foreclosure strained his credit and purchasing power, he was able to sell his home to avoid foreclosure and walk away with the equity he had acquired all those years. Then then turned around and used half that equity as a down payment on his new home. He financed his home using a reverse mortgage on the new home thus avoiding making any monthly mortgage payments on his home. He put the other half of his equity in savings and investment accounts. He lives much more comfortable with the piece of mind that he will never need to worry about losing his home and has the extra monies for his retirement.

This was the outcome:

  • Senior was bailed out of foreclosure
  • Upgraded his home in a nicer area
  • Doubled his purchase power
  • Eliminated his monthly mortgage payments
  • Senior can enjoy a worry free retirement

Many do not know that a person over the age of 62 can purchase a home using a reverse mortgage. Using a reverse mortgage for purchase works the same way one would use to buy a home with a traditional mortgage. It’s quite simple.

We specialize in helping seniors with HECM for purchase and we guide our clients to obtain a reverse mortgage and help them find a home that will fit their needs and lifestyles. If you would like more information or have questions about this program, please call me, Diego Loya 714-989-6040 and I will be more than happy to assist you.

 

A Reverse Mortgage for Purchase Success Story

A Reverse Mortgage for Purchase Success Story

A baby boomer in Orange County recently turned straw in to gold by the use of the Reverse-Mortgage-for-Purchase Program. The homeowner was on the fence about listing her home until the Realtor explained that the Reverse-Mortgage-for-Purchase Program could increase her purchase power. She could more than double her net proceeds from the sale of her current home and eliminate her monthly mortgage payments. She never dreamed this was possible and thought she’d have stay in place and continue to struggle making her mortgage payments.

After she sold her current home, she purchased another using a reverse mortgage instead of a traditional loan. She only put down $295,000 of the $395,000 she had left over in net proceeds after the sale of her previous home. The Reverse-Mortgage-for-Purchase picked up the difference on a new $600,000 home, she retained $100,000 from the net proceeds of her previous home, and now will never have a monthly mortgage payment for the rest of her life. That’s a Win-Win Situation!

If you either have enough cash in the bank and are renting, or enough net proceeds (equity) from the sale of a home that could be used as a down payment along with a Reverse-Mortgage-for-Purchase, please call or email us. It shouldn’t take more than a few minutes to find out all your options.

We specialize in helping seniors with HECM for purchase and we guide our clients to obtain a reverse mortgage and help them find a home that will fit their needs and lifestyles. If you would like more information or have questions about this program, please call me, Diego Loya 714-989-6040 and I will be more than happy to assist you.

Truth and False of a Reverse Mortgage

Misconceptions of a Reverse Mortgage

There has been a lot said about reverse mortgages, true and false. That being said, reverse mortgages have changed and grown through the years. The reverse mortgage of today is not the same as 5, 10 plus years ago. Today reverse mortgages are refined, detailed and the HECM Home Equity Conversion Mortgage is FHA insured. The HECM is the government’s FHA version of a reverse mortgage and is the most popular because of it’s standard regulation, ease of use and popularity among lenders. Most reverse mortgages today are HECM reverse mortgages.

Misconceptions about Reverse Mortgages

Here are some truths about today’s reverse mortgage.

  1. A reverse mortgage is a mortgage. Just like any mortgage, if you do not follow the terms you risk losing your home.
  2. One misconceptions about reverse mortgages is that the borrower gives up the title to their homes. Borrowers maintain ownership until the home is sold and their lender repaid, just like a traditional mortgage.
  3. If a person has the means to repay their lender without selling the home, they may pass on the home to their children or heirs. If not the children or heirs can either purchase the home with a refinance, sell the home and keep the proceeds or do nothing and walk away.
  4. Reverse mortgage fees are almost identical to taking out a regular FHA mortgage loan. There are costs and the borrower will be expected to pay an origination fee, closing costs, mortgage insurance premiums, and sometimes servicing fees. Borrowers will also be expected to pay interest on any amount they borrow. What many people fail to realize is that these costs are typically rolled into the loan. THERE IS NO OUT OF POCKET COSTS UNLESS THE BORROWER DECIDES TO PAY FEES UPFRONT. Unless a person wants to pay certain fees upfront, they will not be expected to pay these fees prior to taking the loan. Talk to the loan officer about the fees that will be charged. Lenders will be required to disclose all of this information in the application process. There is also mandatory counseling each borrower must take prior to taking on the reverse mortgage that will touch on fee disclosure.
  5. The application process is similar to applying for a regular loan but a little less. To qualify for this type of loan, borrowers are expected to apply, have their home appraised, and attend a counseling session. The loan process does take a decent amount of effort on the borrower’s part. Fortunately, in many cases, the benefits are worth the effort.
  6. Applicants for reverse mortgage are REQUIRED to attend an approved counseling session. While this might sound intimidating, these sessions enlighten borrowers and help them understand the loan process. Counseling is required to protect consumers, not to complicate the loan process.

Many seniors are starting to take advantage of a reverse mortgage. The funds received through a reverse mortgage are tax-free and can be extremely helpful to seniors with limited cash. Even after evaluating certain reverse mortgage pitfalls, many consumers choose to further pursue a loan.

A reverse mortgage can provide seniors with the funds necessary to pay large medical bills or simply increase their standard of living. It may even be used to pay off an existing mortgage loan and reduce a person’s monthly expenses. Regardless of the potential reverse mortgage pitfalls, there is no denying that these loans benefit many seniors.

We specialize in helping seniors with HECM for purchase and we guide our clients to obtain a reverse mortgage and help them find a home that will fit their needs and lifestyles. If you would like more information or have questions about this program, please call me, Diego Loya 714-989-6040 and I will be more than happy to assist you.

Couple Uses HECM Mortgage To Buy Dream Home

Purchase-Home-with-Reverse-Mortgage

A person over the age of 62 can use a HECM, Home Equity Conversion Mortgage, to purchase a home. A HECM is a FHA insured reverse mortgage. Here is a real life example of a couple that used a HECM reverse mortgage to purchase a new home that fit their needs and dreams.

Andy and Beatrice Hollimon had endured Midwest winters for decades, and it was time to fulfill their dream of moving south.

“We owned our home in St. Louis area for quite some time, and we vacationed in South Florida the last five to six years,” Andy says. “We were looking to change locations for retirement and were zeroing in on the geographic region that we preferred.”

Andy had worked in human resources management for 40 years and later worked as an adjunct instructor and business administration department chair at Stevens — The Institute of Business & Art. He had worked hard, and they wanted to buy their dream retirement home without dipping into their retirement savings and investment income. They didn’t even think it was possible to get the type of home they ended up buying until watching a television commercial on HECM mortgages.

This form of reverse mortgage required them to put up only a portion of the purchase price, and the reverse mortgage would cover the rest. They would be responsible for the property taxes, insurance and homeowner’s association dues.

The move ended up enabling the couple to retire 10 years sooner than they thought they could (Beatrice had planned to keep on working).

“We lived in a small three-bedroom home since 1979, and it was nicely remodeled and 1,300 square feet,” Andy says. “We were planning on a smaller villa or even renting a home or something like that in Florida. But when we came down here last June, we ran across properties that piqued our interest that were larger. Some were in gated communities and some were on golf courses, but I don’t golf.”

In December, the Hollimons happily moved into their 2,000-square-foot, three-bedroom home in Lake Worth, 56 miles north of Miami.

The couple had lived since 1979 in their St. Louis home, which had three bedrooms and had reached a value of $160,000 before the subprime crisis. The house dipped substantially in value before increasing back up to $115,000 when the housing market recovered.

The Hollimons had a small home equity loan on the St. Louis home and wouldn’t be able to capture the full amount from the sale.

St. Louis Couple Uses HECM Mortgage To Buy Dream Home In Florida

Their home in Lake Worth measures 2,000 square feet, and they acquired it for a price of $275,000, some $5,000 less than the owners were seeking. To purchase the home, the Hollimons needed to put up 55 percent or about $141,000. Knowing they would get less than that from the sale of their home in St. Louis, the purchase would mean dipping slightly into their investment portfolio.

“If I would have needed to take a whole lot more in investment income, I wouldn’t have purchased that nice of a home,” Andy says. “I only wanted to deplete my investment portfolio to a certain level. I’m a frugal guy, and it broke my heart to do that much.”

They were willing to do that, however, knowing that they would never have to make a mortgage payment, and because they weren’t worried about the need to leave their home to someone when they died.

“We don’t have a large family,” Andy says. “My daughter is pretty well squared away in her home and income, and we didn’t have any interest in leaving a home to family members. They have the right to purchase it once we are out of the property, but I doubt my daughter would do that.”

Andy says that made him stop and think — since he didn’t have to worry about leaving their home to anyone, it was time for the couple to follow their desires.

“We were going to follow our dream and seek our dream location,” says Andy, who spends his retirement writing and painting. “If you have the financial ability, you have to reach for what you want. We decided to do that.”

This article originally posted on www.huffingtonpost.com/buck-wargo/st-louis-couple-uses-hecm-mortgage-to-buy-dream-home-in-florida_b_7662948.html

We specialize in helping seniors with HECM for purchase and we guide our clients to obtain a reverse mortgage and help them find a home that will fit their needs and lifestyles. If you would like more information or have questions about this program, please call me, Diego Loya 714-989-6040 and I will be more than happy to assist you.

How to Buy a Home Using a Reverse Mortgage

Buying-home-with-reverse-mortgage

Planning for Retirement

This article is as much for homebuyer and homeowners 62 years or older, as it is for the adult children of aging parents.

Reverse mortgages are primarily about providing financial options that include allowing you to leverage your home’s equity to help subsidize increasing health costs, or supplementing retirement income to realize a higher quality of life.

I encourage adult children of aging parents to educate themselves about reverse mortgages as an opportunity to allow, and encourage your parents to consider how a Reverse Mortgage can help allow for a better quality of life as they plan for their future.

Buying for Retirement

The home that you raised your children in is not always the best home for you to spend your retirement years in. Most times, for those of you with larger families, it just doesn’t make sense to have all of the extra bedrooms, not to mention stairs leading to upper or lower floors of your home.

If you currently own your home free and clear, or are close to it, there are several options for you that can provide for a much more active retirement.

Example – Moving into a Better Retirement

Let’s say you simply do not need as much home as you own currently, would like to move closer to family, or simply want to move to a retirement community that offers greater amenities and access to activities.

Using a Reverse Mortgage could give you the ability to sell your current home, and put a fraction of the proceeds into a new Equity Conversion (Reverse) Mortgage, leaving the remainder of the proceeds as reserves, or to invest in vehicle that increases monthly cash flow with no mortgage payments to be made on your new home.

As an example, let’s say a homeowner is 71 years old and has $300,000 of equity in your current home. For this example, you are also purchasing a home that costs $300,000.

The quick and easy answer would be to sell your existing home, and use the proceeds to purchase your new retirement lifestyle, leaving you with only property taxes and homeowner’s insurance to worry about.

With a Reverse Mortgage, you could put down just over $140,000 toward the purchase of the new home, and still have NO PAYMENTS for as long as you live in the home, again only being responsible for property taxes and homeowner’s insurance.

You accomplish the exact same goal as before, except you are now $160,000 more liquid, which you can use to set up college funds for your Grandchildren, invest in cash flow vehicles to increase your monthly income, or keep as cash reserves for emergencies.

No Credit, No Income, No Problem

Qualifying for a Reverse Mortgage hinges on two factors, the age of the borrower, and the equity in the home. Your income and credit profile are never taken into consideration.

This is an often overlooked benefit of using a Reverse Mortgage that prevents many seniors from accessing their retirement equity because they are under the impression that they do not earn enough money to take out a loan, or your credit is not perfect.

If your income and credit allows you to qualify for a home loan, or home equity line of credit, using the above scenario, you can access $140,000 of the equity in your $300,000 home to purchase your new home using a Reverse Mortgage, and rent out your current home, collecting enough rent to easily cover the mortgage payment on the new loan.

In this scenario, you retain your current home, create residual rental income, and have the ability to purchase your dream retirement home with no payments for the rest of your life, without having to income qualify.

Myths and Misunderstandings About Reverse Mortgages

There are many myth and misunderstanding about Reverse Mortgages that prevent seniors, and adult children of aging parents from even considering this as an option. Let’s take a look at some of the more common concerns we hear:

Myth #1: The Lender Owns The Home – This simply is not true. You retain title to your home, and have the ability to sell your home at any time. Your heirs have 1 year to refinance, or sell the home once they receive title to the home upon your passing.

Myth #2: The Home Must Be Free and Clear – Many homeowners actually use a Reverse Mortgage to pay off an existing mortgage and eliminate monthly mortgage payments.

Myth #3: Only Poor People Need Reverse Mortgages – The perception that reverse mortgages are only used by low income seniors because they have no choice is quickly changing.

Many affluent senior homeowners with multi-million dollar homes and large retirement assets are using Reverse Mortgages as part of their financial and estate planning. Consult your financial professionals and estate attorneys about how this option may enhance your overall quality and enjoyment of life in your retirement years.

Working with a Creative Lender

As a direct lender in California, we pride ourselves in being on the cutting edge of creative financing solutions. When I say “creative” I mean that we know our guidelines, and we know how to fight through the hurdles of complicated situations that others may not have the experience or patience to figure out.

A Reverse Mortgage is not the best solution for everyone. However, having the ability to educate yourself about the many incredibly beneficial options available to you, or your aging parents, puts yet another option on the table for meeting financial goals, and improving your quality of life.

Our phone number go to our cell phones, and we are available when you have a question.  Don’t be afraid to leave a message, I promise we will get back to you in a timely manner.

This article originally posted on www.FindMyWayHome.com

How to Use a Reverse Mortgage

How-to-Use-a-Reverse-Mortgage

Common Uses For The Reverse Mortgage

A Reverse Mortgage unknown to many, can be used by anyone for any reason. As long as you own your home, have adequate equity and are of at least the healthy age of 62 or better, you may be able to qualify for a Reverse Mortgage.

There is nothing that says what you are or are not allowed to spend the money on. Pay bills, by a car, spoil your grandkids, fix up the house or even take up underwater basket weaving. The choice is yours. Below are some common uses for taking out a Reverse Mortgage.

Extra Retirement Income – Let’s face it. For many Americans, we don’t make it to retirement with as much money as we would like or need. Some had great retirement accounts before the economy tanked. Some had absolutely nothing and are living on just Social Security.

Your home is likely the single largest investment you made. You can use the equity and convert it to cash to add to your income. Many older Americans are just barely making it by. And most choose not to share this fact with friends and family because of the dignity factor.

A Reverse Mortgage can help give you back your independence and dignity by helping you to meet your financial obligations. The increasing costs of healthcare, prescription drugs, gasoline, and everything else have had huge impacts on the financial lives of hundreds of thousands of seniors across the country.

Home Improvement, Upgrades, Remodeling – Add that extra room, Upgrade your Kitchen or Bath, New Carpet, New Roof, Walk in Tub, you decide! We all want to spice up life a bit. Bringing your home up to modern style can bring a smile to your face and add new life to your home.

Estate Planning – Give money to your kids now, rather than after you die. Wouldn’t be better to share it with them while you’re alive and enjoy the act of giving? Wouldn’t it be nice to SEE your great grandchild ride the bike you bought him or her? Wouldn’t it be nice to see your grandson going to college with the money you gave them? You can’t do that after you die!

If you have a large estate, you can use the interest accrual to offset Estate Taxes after you pass away. *Seek legal advice from an Estate Planning Attorney on the details of this.

Prevent Foreclosure – You may be able to use a reverse mortgage to prevent losing your home. Even if you are a slightly upside down in your equity position, a lot of banks and lenders have been willing to accept a less than owed payoff versus going through an entire foreclosure or short sale procedure. It costs them less, and you get to stay in your home FOREVER, without a payment. You can stop foreclosure proceedings in many cases if you are approved for a reverse mortgage. Speak to a Reverse Mortgage Professional about your situation to see if this may be an option.

Luxury Spending – Yes, believe it or not, some people just want to DO MORE during retirement. Do the things you always wanted to do, but couldn’t afford. Buy that new car, travel to Paris, second honeymoon with the Misses, whatever you want the money for, it’s yours to do whatever you want with. There are no limitations on what you can use the money for.

As you can see, a Reverse Mortgage can be used for just about anything. The real issue comes down to YOU. Does it make sense for YOU.

This article originally posted on www.FindMyWayHome.com

What is a Home Equity Conversion Mortgage?

Home Equity Conversion Mortgage

Reverse Mortgage

Maybe you’ve seen commercials on TV about Reverse Mortgages. Mortgage companies offering this Government insured mortgage solution are famous for using Celebrity spokespeople to build awareness for this underutilized home mortgage loan program.

A Home Equity conversion Mortgage (HECM), also known as a Reverse Mortgage, is government insured loan program offered by the Federal Housing Administration (FHA).

A Reverse Mortgage allows eligible borrowers, 62 years of age or older, to access a portion of your home’s equity, and take tax-free funds without having to make monthly mortgage payments.

In some cases, your mortgage can pay you monthly, in a lump sum, or a combination of the two, which we will go into in more detail later.

Quality of Life

The way a Reverse Mortgage is structured makes it confusing to many borrowers, mostly because it does not follow the more familiar loan structure where monthly loan payments are required over a specific period of time.

After all, how do you take out a mortgage and not have to make a mortgage payment for the rest of your life? There are many myths and misconceptions about this mortgage program, most of them due simply to a lack of education.

The fact is, Reverse Mortgages are a government program designed to assist seniors through retirement by allowing them to use the equity in their home to provide a higher quality of life.

For the adult children of aging parents, it is our responsibility to understand this option, as it can greatly help our parents live more comfortably, with more money to do the things they want to do in retirement.

Reverse Mortgage Options

“Historically, people have sought HECM loans as a way to make ends meet, as they balance the costs of health care, housing and other basic needs in their retirement years. But in today’s housing market, it has become more common to see people using them to eliminate their monthly mortgage payments” – Wall Street Journal, June 27th, 2010

One common myth is that the home must be free and clear of any existing mortgages in order to use a Reverse Mortgage. While options are limited to the equity in the home, this simply is not true.

Actually, many homeowners pay off an existing mortgage, and either take cash out, receive monthly payments for life, or simply eliminate mortgage payments for life.

With a fixed rate Reverse Mortgage, you can eliminate your payments for as long as you live in the home, maintain the home to FHA habitability standards, stay current on your homeowner’s insurance and property taxes.

When using an adjustable-rate Reverse Mortgage, you have many additional options.

Tenure

Receive equal monthly payments as long as at least one borrower lives in, and continues to occupy the home as your principal residence.

Term

Receive equal monthly payments for a fixed period of months that you choose. The amount of equity, and the number of months you choose to be paid will determine the amount of each payment.

Line of Credit

You can also use a Reverse Mortgage as a Home Equity Line of Credit (HELOC), taking unscheduled payments or installments, at any time, in any amount you choose, until the line os credit is exhausted.

Modified Tenure

Maybe you want a hybrid, or combination of one or more of these options? A modified tenure option allows a combination of a line of credit, plus scheduled monthly payments, for a s long as you remain in the home.

Modified Term

Similar to a modified tenure, a modified term allows you to structure a combination of a line of credit, plus monthly payments, for a fixed period of months determined by you.

Lump Sum

You can receive a single payment up to the maximum allowed, with no payments for as long as you live in the home.

Reverse Mortgage Protections

Home Equity Conversion Mortgages have built in safeguards that protect you and your home.

Federal Housing Administration (FHA) Insured – Reverse mortgages are FHA insured. You are always protected against challenges the lender may have, and will always be able to receive your payments, or continue to make no payments, even if the lender goes out of business.

Mandatory Mortgage Insurance – Reverse mortgage are required by the U.S. Department of Housing and Urban Development (HUD) to charge a mandatory mortgage insurance. This mortgage insurance protects you and your heirs in the event the loan balance is higher than the home’s value at the time of sale.

Independent Counseling – Before you commit to a Reverse Mortgage, an independent HUD approved counselor will provide you with objective information, and help you understand how the HECM loan works.

Capped Interest Rates – If your loan has an adjustable interest rate, there is no risk of it skyrocketing out of control. There is a limit on how much some interest rates can change during a specific period of time, and over the lifetime of the loan. All of this will be disclosed upfront, and reviewed by the HUD approved counselor.

Three Days to Cancel – After signing your loan documents, you have three business days to cancel your loan. This is called a Right of Recission, and applies to all HECM refinance mortgages. There is no right of rescission for purchase money Reverse Mortgages.

Working with a Creative Lender

A Reverse Mortgage is not the best solution for everyone. However, having the ability to educate yourself about the many incredibly beneficial options available to you, or your aging parents, puts yet another option on the table for meeting financial goals, and improving your quality of life.

Our phone number go to our cell phones, and we are available when you have a question. Don’t be afraid to leave a message, I promise we will get back to you in a timely manner.

This article originally posted on www.FindMyWayHome.com