 |
Reverse Mortgages
What is a reverse mortgage?
A reverse mortgage is a home loan (used for any purpose) where seniors, 62
and older, can access the equity (cash) built up in their home.
There are several different reverse mortgage programs. Fannie Mae Home Keeper®,
Jumbo Cash-Out loan, and the HUD-insured Home Equity Conversion Mortgage (HECM)
are three such programs. As demand increases, more reverse mortgage programs from
different organizations will become available.
It is called a reverse mortgage because you borrow money from a lender, but
the lender makes monthly payments to you, rather than you making monthly payments
to the lender. All interest is paid at the end of the loan, rather than in the
beginning.
What are some of the benefits of a reverse mortgage?
- Strengthen your personal and financial independence.
- Help pay for health care or other needs.
- You can never lose your home in foreclosure as long as you maintain the property
tax and insurance payments.
- The loan is only paid off when the house is sold by you or your heirs, or
all borrowers move out of the house.
- Keep your Medicare or Social Security benefits.
- Use it as a credit line and draw upon it as needed.
- Get all your cash right away.
- Get the best of both—get cash now and have a balance in reserve to use
as a credit line.
- No Income Requirements: The homeowner does not need to be working and is not
qualified based on income.
As the homeowner receives monthly cash income, the loan balance increases.
In the following twelve-month example, the homeowner begins with a debt-free home.
As money is received by the homeowner, the mortgage grows. By the end of month
twelve, the homeowner owes the bank $6,000 plus $232.44 interest. All Reverse
Mortgage loans have a variable rate.
Assumptions*
| Regular monthly advances |
$500 |
| Annual interest rate |
7.0 % |
| Monthly interest rate |
.583% (.07 / 12) |
| 0 |
0 |
0.00 |
0.00 |
$500.00 |
| 1 |
$500.00 |
$2.92 |
$502.92 |
$500.00 |
| 2 |
$1,002.92 |
$5.85 |
$1,008.77 |
$500.00 |
| 3 |
$1,508.77 |
$8.80 |
$1,517.57 |
$500.00 |
| 4 |
$2,017.57 |
$11.77 |
$2,029.34 |
$500.00 |
| 5 |
$2,529.34 |
$14.75 |
$2,544.09 |
$500.00 |
| 6 |
$3,044.09 |
$17.76 |
$3,061.85 |
$500.00 |
| 7 |
$3,561.85 |
$20.78 |
$3,582.63 |
$500.00 |
| 8 |
$4,082.63 |
$23.82 |
$4,106.44 |
$500.00 |
| 9 |
$4,606.44 |
$26.87 |
$4,633.31 |
$500.00 |
| 10 |
$5,133.31 |
$29.94 |
$5,163.26 |
$500.00 |
| 11 |
$5,663.26 |
$33.04 |
$5,696.29 |
$500.00 |
| 12 |
$6,196.29 |
$36.15 |
$6,232.44 |
$500.00 |
*Many criteria are considered when determining the reverse mortgage loan amount,
interest rate, etc.
 Northwest Mortgage Advisors - 135 Lake Street South Suite 100 - Kirkland, WA 98033 Office Phone: (425) 533-3953 Fax: (425) 889-1657 Toll Free Phone: (800) 393-6178
Site Map
Apply Rates Refinance Analysis Rate Alert Free Mortgage Payment Free Prequal Letter
We lend in the states of Washington (license # 510-LO-43242), Oregon (license #ML-4630), and California (license #603-E633).
You can find great local Washington real estate information on Localism.com Bill Fores is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
Seattle Home Loans, Seattle Mortgage Loans, Seattle Home Mortgage, Seattle Real Estate Loans, Seattle Mortgage Rates, Seattle Real Estate Financing, Kirkland Home Loans, Kirkland Home Mortgage, Bellevue Home Loans, Bellevue Mortgage Loans, Washington Mortgage Rates, Washington Home Loans, Washington Home Mortgage, Cle Elum Homes
© 2008 Myers Internet, Inc. All Rights Reserved
Powered by: Myers Internet, Inc. | Admin Login
|
 |
