We are pleased to share with you our updated reverse mortgage glossary of terms. For those who are new to the reverse mortgage loan process or want to better understand the terminology involved in researching reverse mortgages we hope you will find our new glossary useful. Within our guide you will find definitions for reverse mortgage loan terms such as London Interbank Offered Rate, Line of...
Can Reverse Mortgage Loan Proceeds Be Used to Buy a Second Home?
A reverse mortgage loan allows homeowners 62 years and older to access the equity in their primary residence. The Federal Housing Administration (FHA) insures reverse mortgage loans through its Home Equity Conversion Mortgage (HECM) program. Purchase a Second Home with Loan Proceeds from a Reverse Mortgage Borrowers who take out a reverse mortgage are able to use their proceeds however they...
Can a Reverse Mortgage Be Used to Avoid Foreclosure?
Just about everyone has been affected by the economic downturn and the housing market crash, including—or perhaps especially—older adults. Many Americans are struggling financially and are looking for ways to stay in their homes and avoid foreclosure. “More than one-half of elder households in the United States have incomes that do not cover their basic expenses,” says Wider Opportunities for...
How Does Age of the Borrower Impact Proceeds in a Reverse Mortgage?
Reverse mortgages may be a great way for those 62 years and older to access the equity they’ve built up in their home over the years. For the most part, the older the borrower, the more in proceeds the borrower will receive. To determine how much you’re eligible to receive from the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) loan, you need to look at three things: Age...
What Happens To A Reverse Mortgage After The Borrower’s Death?
Once a reverse mortgage borrower passes away or leaves the home permanently, the loan will enter a due and payable status. If the borrower has passed away, his or her heirs are responsible for repaying the loan. They can do this by selling the home, or through any other means that are available to them if they wish to keep it. Typically within a month from the borrower’s passing, the heirs will...