Reverse Mortgages Learn The Facts First!
Reverse Mortgages, Most Common Features:
Many offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits.
Depending on the plan, reverse mortgages generally allow homeowners to retain title to their homes until they permanently
move, sell their home, die, or reach the end of a pre-selected loan term.
Generally, a move is considered permanent when the homeowner has not lived in the home for 12 consecutive months. So, for
example, a person could live in a nursing home or other medical facility for up to 12 months before the reverse mortgage would be due.
However, be aware that:
Reverse mortgages tend to be more costly than traditional loans because they are rising-debt loans.
The interest is added to the principal loan balance each month. So, the total amount of interest owed increases significantly with time as the interest compounds.
Reverse mortgages use up all or some of the equity in a home. That leaves fewer assets for the homeowner and his or her heirs.
Lenders generally charge origination fees and closing costs; some charge servicing fees. How much is up to the lender.
Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.
Because homeowners retain title to their home, they remain responsible for taxes, insurance, fuel, maintenance, and other housing expenses.
Getting a Good Deal.
If you decide to consider a reverse mortgage, shop around and compare terms.
Look at the:
Annual percentage rate (APR), which is the yearly cost of credit. type of interest rate. Some plans provide for fixed rate
interest; others involve adjustable rates that change over the loan term based on market conditions, number of points (fees paid to the lender for the loan) and other closing costs.
Some lenders may charge steep costs, which your lender may offer to finance. However, if you agree to this, you'll take out
fewer proceeds from the loan or you'll borrow an extra amount, which will be added to your loan balance and you'll owe more
interest at the end of the loan. Total Amount Loan Cost (TALC) rates.
The TALC rate is the projected annual average cost of a reverse mortgage, including all itemized costs.
It shows what the single all-inclusive interest rate would be if the lender could charge only interest and no fees or other costs. payment terms, including acceleration clauses.
They state when the lender can declare the entire loan due immediately. Under the federal Truth in Lending Act, lenders must
disclose these terms and other information before you sign the loan.
On plans with adjustable rates, they must provide specific information about the variable rate feature.
On plans with credit lines, they must inform the applicant about appraisal or credit report charges, attorney's fees, or other costs associated with opening and using the account.
Be sure you understand these terms and costs.
MORTGAGE-REFINANCING NEWS updated
Sun. June / 16 / 2019
Refinance rates decline for Thursday Bankrate.com
Several key refinance rates sunk lower today. Average rates nationwide for 30-year fixed and 15-year fixed refinances both trended down. The average rate on ...
Refinance rates dip for Tuesday Bankrate.com
Several closely watched refinance rates sunk lower today. If you're shopping for a refi, see how that could affect you.
Refinance rates tick lower for Friday Bankrate.com
Multiple benchmark refinance rates ticked downward today. Average rates nationwide for 30-year fixed and 15-year fixed refinances both trended down.
Refinance rates retreat for Monday Bankrate.com
Several closely watched refinance rates fell today. If you're in the market for a home loan, see how your payments might be affected.
Mortgage Rates Just Had Another Awesome Week Mortgage News Daily
While we can't say that this week's best mortgage rate offerings were quite as good as last week's best, they were pretty darn close. In fact, quite a few lenders ...
Key mortgage rate climbs for Monday Bankrate.com
Mortgage rates diverged today, but one key rate was higher. The average for a 30-year fixed-rate mortgage trended upward, but the average rate on a 15-year ...
Mortgage rates fall for Tuesday Bankrate.com
Multiple benchmark mortgage rates trended down today. The average rates on 30-year fixed and 15-year fixed mortgages both declined. The average rate on ...
Money Mistakes To Avoid In Your 40s MoneyWise.com
Financial advice is abundant for retiring adults, and for those gosh darn millennials too. But what about the folks in the middle? If you're in your 40s, you...
Confidence in the US housing market grows Miami Agent magazine
Two recent measures of Americans' confidence in the national housing market improved in the last month, showing that more homeowners as well as ...
Refinance mortgage rate drops for Friday Bankrate.com
Refinance rates were mixed, but one key rate ticked downward. If you're shopping for a refi, see how your future mortgage payments could be affected.
Refinance rates dip for Wednesday Bankrate.com
Multiple key refinance rates slid lower today. If you're in the market for a mortgage, see how your payments might be affected.
Refinance rates rise for Friday Bankrate.com
Multiple closely watched refinance rates notched higher today. See what that means for you if you're in the market for a home loan.