Will A Reverse Mortgage Affect Your Existing Loans and Benefits?

A reverse mortgage is one of the many options that can help increase the financial support of those who are already on their retirement age.

A reverse mortgage loan is also referred to as HECM or HomeEquity Conversion Mortgage. It allows seniors to convert their home’s value to funds or cash that could be used right away. This is a wonderful addition to other retirement alternatives for those who would like to increase their funds for expenses like home improvements or tours.

What Is A Reverse Mortgage Loan For?

A reverse mortgage loan isn’t necessarily meant for costly activities. Most borrowers use the reverse mortgage loan to fund their daily needs and help them live more comfortably. It is an excellent addition to Medicare and Social Security benefits.

There are a few who believe that reverse mortgage could affect their benefits they receive from the government like social security and healthcare. As a matter of fact, a reverse mortgage loan doesn’t affect your membership status with social security. But it will have a small impact on your Medicare benefits. In case the healthcare department can detect that you are getting a large amount of cash every month, then they may choose to lower you renumeration, or they could deny your Medicare application so they could accommodate the needs of other members.

There is something you can do in order to avoid this particular inconvenience. You can keep the loan’s proceeds in the bank since it would be misconstrued as your asset. Keep in mind that the purpose of a reverse mortgage is to finance your expenses, and it is expected that the monthly amortization is going to be spent in the same calendar month. In case the money is spent right away, it won’t have an impact on your Medicare standing.

In case you are considering a reverse mortgage Greenville even if you have a current mortgage in your name, the reverse mortgage should be your primary loan. In case the eligible amount of the equity of your home is enough to cover your outstanding loan, then you can proceed with the reverse mortgage loan. It’s also helpful to remember that the difference between your existing loan as well as the reverse mortgage proceeds should leave you with sufficient funds, because if not, it could cost you so much more.

Because even then, you entire reverse mortgage loan would be used up. You won’t receive monthly payments anymore and if the left over cash is found to be too little then you may wind up in a difficult financial situation in the future. It’s also possible to make use of the whole loan amount to pay off your current debt and if still not enough, you can use your personal savings to pay for the remainder of the loan.

Even though it’s possible, it’s advised not depend on reverse mortgage to pay off your outstanding debts if you could find other sources of money like investments and retirement accounts. Reverse mortgage loan Greenville would be effective for real expenses instead of debt payment due to the ceiling of the amount that you could borrow.

Call Reverse Mortgage Specialist if you wish to learn more about reverse mortgage loans.

David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/

All About Reverse Mortgage Interest Rates

There are different options about getting loans when you are at a point in your life where you have to make ends meet. Several options are offered by the majority of them, there are stringent requires in order to be eligible for the grant. The commonly depend on the borrower’s credit score and his or her capacity to pay. However, one kind of mortgage is different and many people, particularly seniors, opt for this type of loan. It is called reverse mortgage. Just like its name suggests, reverse mortgages work the other way around when compared to conventional loans. You are not the one who will be making payments but you will be receiving them instead.

But not everyone could enjoy the advantages of reverse mortgage loans. Just the whole process of getting the mortgage could be quite confusing and could cost you more money especially if you have no idea about the basics. And most likely, one of the most important things that you must know about this type of loan is the interest rate that is involved.

Interest Rates: What Is The Best Offer?

Reverse mortgage specialists said that the interest rate of a reverse loan is based on several factors like your home’s appraisal value. And the rates differ from each lender. The usual rates begin at 2% of the home’s actual value where the equity will be drawn up against. However, this rate is just prevailing in the Federal Housing Administration grants. It could be much higher at other lending firms.

Adjustable and Fixed Reverse Mortgage Loan

Paying off the interest rates could also depend on whether you will choose a fixedor adjustable reverse mortgage. The first one won’t let you choose a single cash payment so you just have the credit lines or the monthly payments. And you need to pay the interest rates together with the monthly payments. It’s the opposite when it comes to an adjustable loan where you are allowed to choose from all the three kinds of payments. The average rate you’ll get is a bit above 6%.

Tips To Find A Lender With Better Interest Rates

If you would like to get a great reasonable interest rate then the best thing you should do is to shop around and then compare all the options you’ve obtained. You could perform an online search and find any reverse loan lender that is available in your area. Additionally, search for the lowest prevailing rates and don’t hesitate to bargain with your selected lender.

Online Reverse Mortgage Calculator

When you are researching online for the best reverse mortgage loan lender, make full use of the online rate calculators that are commonly available on the website of the lenders. You could use this to calculate the reverse mortgage loan that you could get based on your home’s appraisal value. You could compute the interest rate that you are going to pay just in case you could get a loan. This could be your guide when determining if a reverse mortgage loan is for you or not.

It is important to know the best interest rate since this is one of the most crucial factor that could make the reverse mortgage loanGreenville the worst type of loan for you, especially if you don’t know what it really is and if you fail to find the best rates for you.

Call Reverse Mortgage Specialist if you want to know the best interest rates for you.

David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/

Debunking The Myths About Reverse Mortgage

There are several misconceptions circulating about reverse mortgages. Despite the suggestions from the America Association of Retired Persons, the concept of obtaining a reverse mortgage worry a lot of seniors. It’s even made worse by friends or family who say that reverse mortgages are bad without even presenting enough evidence to back up their claims.

The truth about the myths surrounding reverse mortgages.

Reverse mortgage lead to houses being taken away from the borrowing senior.

This is one of the most common misconception about this kind of mortgage loan. This is not true. As a matter of fact, the senior borrower would continue to have ownership of the house that’s under the reverse mortgage program. This homeownership is made much more secured by the lien that’s placed upon the property, just like any other type of mortgage. It will guarantee that the lender would also be repaired form the owed amount, getting rid of the threat of the house getting removed from the senior borrower.

Since the majority of reverse mortgages are FederalHousing Administration Home Equity Conversion Mortgage (HECM) types. The US government guarantees full protection by using the mandatory 3% insurance fee that’s payable on all the FHA reverse mortgages.

The other types of reverse mortgages are referred to as Proprietary Reverse Mortgage and the Federal National Mortgage Association. These are guaranteed and safe by the private lenders.

Reverse Mortgage Is Costlier Than Other Types of Mortgages

This is not true. The closing cost of a reverse mortgage is only 1% higher than an FHA mortgage when obtained on the exact same property. Traditional mortgages tend to charge at least 2%.

The interest rate also plays a crucial role. Although the prime rates are used by conventional mortgages as their base, the FHA reverse mortgage interest rate will depend on the one year UnitedStates Treasury Note. This simply implies that the interest rate made through the reverse mortgage is way lower than a conventional mortgage.

The Home Will Be Given To The Lender Once The Borrower Dies

It is not true that the lender will take your home once you die or if you decide to relocate or sell the house. It actually follows the exact same procedure as a typical mortgage where the home equity goes to the heirs of the borrowers or the estate.

A reverse mortgage loan will have the estate pay the reverse mortgage lender the home value during the time of repayment. The exact same thing will apply in the case of significant decrease in the home value or when the borrower will reach extreme old age.

Tax Can Be Imposed On A Reverse Mortgage

It’s also not true that tax can be imposed on a reverse mortgage loan and that health insurance and Social security will be affected by the loan terms. Always remember that a reverse mortgage is a loan and not an income.

In case you need to know more about reverse mortgages and the benefits it has to offer, call Reverse Mortgage Specialist now.

David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/