What You Should Know About Repaying a Reverse Mortgage
Originally published at Forbes Repayment of a home equity loan balance may be deferred until the last borrower or non-borrowing spouse has died, moved, or sold the home. Prior to that time, repayments can be made voluntarily at any point to help reduce future interest due and to allow for a larger line of credit […]
Choosing Costs for a Reverse Mortgage
The discussion of reverse mortgage costs has several moving parts. Which type of cost combination to choose depends on how you plan to use the line of credit during retirement.
Spending Options for a Reverse Mortgage
Most current HECM reverse mortgages use an adjustable interest rate, which allows the proceeds from the reverse mortgage to be taken out in any of four ways or a combination thereof.
How Does the Line Of Credit for a Reverse Mortgage Work?
A mortgage’s effective rate is applied not just to the loan balance, but also to the overall principal limit, which grows throughout the duration of the loan.
Upfront Costs of Opening a Reverse Mortgage
Upfront costs for reverse mortgages come in three categories.
Eligibility Requirements for a Reverse Mortgage
The requirements to become an eligible HECM borrower are numerous. Do you qualify?
A Brief History of Reverse Mortgages in the U.S.
Reverse mortgages have a relatively short history in the United States, beginning in a bank in Maine in 1961.
How Did Reverse Mortgages Get Such a Bad Reputation?
Before discussing how reverse mortgages can fit into your retirement income plan, it is worthwhile to first consider in greater detail the bad reputation reverse mortgages have developed.
Wise Reverse Mortgages Can Be a Saving Grace for Retirees
If, after considering other housing options, you have decided to remain in an eligible home or to move into a new home, you may want to consider a Home Equity Conversion Mortgage (HECM) – more commonly known as a reverse mortgage – as a source of retirement income.
