Reverse mortgages can make sense but it is important to understand all of the details
The Reverse Mortgage is a mortgage for older home owners who want to utilize the equity in their property. more and more popular. If you are over 62 and are interested in purchasing real estate or making home improvements or acquiring money for another real estate transaction here is what you need to know about a Reverse Mortgage:
- To qualify a borrower must be 62 years of age or older.
- The Borrower must live in the residence as his primary residence.
- There are no minimum income, asset or credit requirements.
- There are no monthly payments required for as long as the borrowers occupy the residence as their primary residence.
- The Funds can be taken as a lump sum, monthly payments, line of credit or a combination.
- There are no restrictions on how the funds are used.
- Loan proceeds are not considered income and will not affect Medicare or Social Security benefits.
- There are no prepayment penalties.
- Heirs may keep the home by paying off the balance on the reverse mortgage loan.
- All applicants are required by federal regulation to seek 3rd party financial counseling by an approved Department of Housing and Urban Development (HUD) organization.
For more information on Reverse Mortgages visit www.reversemortgage.org.
Home Affordable Refinance Program Can Help Those Whose Home Values Have Dropped
The Home Affordable Refinance program can help those whose home values have dropped
The Home Affordable Refinance program was designed to help home owners lower their monthly payments while at the same time securing lower interest rate mortgages. The program is aimed at helping home owners whose mortgage loans are more than the value of their home. The program had a value set at 105% and under the Obama Administration this number has become 125%. The Home Affordable Refinance plan is helping home owners who are underwater with their home values restructure their mortgage payments and ease their financial stress. A few highlights of the Home Affordable Refinance program are:
If you are living in an area where the value of your home has dropped below what it was when you purchased it this could be the program for you.
Check out the Making Home Affordable web site for more information and to see if you qualify.