Posts Tagged ‘reverse mortgage’

Creating Awareness for Forward and Reverse Mortgage

Picture Credit : financialproregistry.com

Picture Credit : financialproregistry.com

The blog has explored about different subjects, which have raised many queries associated with the better future of the loans as well as mortgage industry.

Is the reverse mortgage industry can become the suitable guide for the senior individuals belonging to our society? Can the personnel responsible for providing the mortgage amount become the correct person for helping senior people of community in all the situations, needing additional amount of finance? Is it possible that senior people consider reverse mortgage as one of the best and effective ways of receiving the needed financial assistance for payment of different types of care insurance premiums for longtime? The response to all these situations and queries associated with the mortgage sector is No.

Whether you talk about the forward mortgage or the reverse mortgage, you can never expect them as the top preference of the aged people seeking for financial assistance for getting money for buying homes or other needs. If you have a look over the past and present scenario of the mortgage sector, you may easily find that individuals have never considered the availing of loans or mortgages at the initial stage of requiring finance. Read the rest of this entry »


Way to Create Awareness for Reverse Mortgage

Lack of well awareness about the terminology and concept of reverse mortgages are among the biggest challenges to be faced by our mortgage industries in the future. Moreover, many people, who although have awareness about our offered products, but have deluged with misconceptions and untruths may create problem into the growth and development of our industry. By making familiar in front of the people and financial community of the mainstream has always remained our major weakness. Furthermore, frankly speaking, I have written and thought about the consistent use of different Hollywood spokesperson for representing our mortgage industry in front of public.

However, such techniques have cheapened and discredited our product, rather than giving help to us. I always give the credit to a famous people named Robert Wagner. Wagner has played vital role in bringing the product of reverse mortgage in to the eyes of public by overcoming the shadows. Few years ago, while travelling by bus or train, most of the passengers ask me about my job profile or about the activities, which I do for earning my living. During this time, when I give reply that I am involved in selling of mortgage products, they can easily recognize that it is the thing of Robert Wagner. However, all these incidents associated with our offered products and mortgage industry has become the matter of past.

Based on this incident, I can say that awareness about the reverse mortgage sector is not possible by the claims of Hollywood celebrity or any other multimillionaire personality. Now, the main question that comes in the mind of the people is that what exactly they should do for bringing awareness or give valuable education about the mortgage product to the industry. For this, we are available with two different options. Read the rest of this entry »


My Predictions for Better Reverse Mortgage Future

Picture Credit : athomesense.com

Picture Credit : athomesense.com

I have very much confidence about the bright future of various forms of mortgages up to the coming years. Nonetheless, many friends of mine oppose me due to my optimistic thinking towards the same. In this case, I said to the people that my predictions towards the profitable reverse mortgage future are not associated with my dream. Instead, my positive thinking has a close relationship with the science. Most of the people give their perception regarding the mortgage or finance sector depending on their designed business models or emotional levels. However, I have optimistic opinion about the same only due to the scientific reasons associated with the growth of reverse mortgages.

Whether we talk the mortgage, care insurance available for long duration and any other products having close relation with the longevity of funds, the products live for relatively long duration in comparison to the period or duration expected by the individuals before few years. Furthermore, you cannot deny that modern medication and scientific developments have improved the lifespan of our respected elders to a huge extent. Even, scientists and medical experts have introduced this fact as recorded pace in front of the public. Hence, it is obvious that if the human beings live for many ages after retiring from services, they may need suitable home equity for preventing their situations related to facing financial crisis during their entire life. In addition, such individuals may even need suitable retirement planning for making their future better. Our reverse mortgage sector can get this objective for many old-aged people or senior members belonging to our communities. In fact, our industry has become ground zero in terms of longevity of funds.

In fact, because of the increase in the lifespan of the human beings, professionals related to reverse mortgage sector have started accepting that the products will certainly develop from the present status in the form of ultimate resort product based on needs to a complete retirement planning instrument. Retirement planning instruments are some of the best instruments, which may help in the increase of the life of portfolio of old aged people for matching their expectancies of expanded life. Other than this, reverse mortgage before few years do not have any similarity with the mortgage of coming years. Financial assessments are the essential components of the mortgage industry. Hence, by gaining fundamental knowledge and expertise about the topic, we can expect to achieve success in the near future. Therefore, I will conclude my predictions by saying that it is only the education, which can bring drastic change in our mortgage sector.


What do we Understand by Reverse Mortgage?

Collateral security is a term which most of the people might have come across when they read about finance and loans. It plays a vital role when homeowners apply for loans. A term known as reverse mortgage could defined as the loan for the senior homeowners for using one portion of their house as a collateral security. This kind of loan is not required being repaid until and unless last surviving owner of the particular property moves out or expires. At that moment the estate is given about six months for repaying the balance from reverse mortgage or even sells the house for paying the balance.

In this scenario it states that remaining equity of the property would be inherited and the estate would not be liable for a price lessor than balance for reverse mortgage. One moment a question is asked regarding reverse mortgage simple answer which most would hear is:

In order to become eligible for the HECM reverse mortgage all the homeowners need to be minimum of 62 years in age. This limit has been set by the FHA. Moreover it is essential that home is owned free by the applicant and there happens to be no liens pending against the property. In case there remains the mortgage balance then that could be paid entirely from proceeds of this reverse mortgage loan during the time of closing. Usually there is no such income or the credit score which is required for applying forreverse mortgage.

Other property of reverse mortgage which needs to be highlighted is that reverse mortgage cannot be outlived. This means that the time till the homeowner lives at the property being primary residence while maintain each home as per the rules set by FHA the loans would never become due. At the time of the death of the homeowner home ceases for being a primary residence over a period of 12 months or more. The option with homeowner’s estate would be repaying reverse mortgage or putting the entire home for sale. In a scenario where the equity of the house goes beyond the loan amount the remaining equity gets paid back to estate.

Finally discussing the limits of a loan the amount is dependent on the 4 factors which are:

·           Age

·           Prevailing Interest rates

·           Appraised value for the house

·           Government Imposed Lending limits.


June 2017
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