Wednesday, November 18, 2009
Reverse Mortgage Myth: Reverse mortgages only benefit desperate and "cash poor" senior citizens.
Fact: It is true that some seniors may have greater need than others for cash or an increased monthly income. It is also true that a reverse mortgage can be an excellent financial estate planning tool for any senior that has sizeable equity in their home.
Friday, November 13, 2009
Frequently Asked Questions
Will the lender take my house?
No, this is a misconception; a reverse mortgage is a loan against the property. The title remains in the name of the borrower(s) and the lender is only repaid the loan balance or home value, whichever is less.
Will I ever owe more than my home is worth?
No. All reverse mortgages are "non-recourse" loans, meaning the borrower can never owe more than the value of the home regardless of loan balance.
Can I get a reverse mortgage if there is already a mortgage on my home?
Yes, but any existing mortgages must be paid off at closing. The proceeds from the reverse mortgage may be used for that purpose.
Do I or my heirs have to sell the property to repay the loan?
No. Repayment can be accomplished by a refinancing of the existing reverse mortgage with a conventional mortgage loan.
When does the loan become due and payable?
The loan is due and payable when the last remaining borrower sells the property, permanently leaves the home, or passes away. Until these events take place you live in the home and make no payments to the lender.
If there are no payments, what are my responsibilities?
You are required to pay your property taxes, keep the property insurance current, maintain the home, and notify the lender if you will be away from the property for an extended period of time
No, this is a misconception; a reverse mortgage is a loan against the property. The title remains in the name of the borrower(s) and the lender is only repaid the loan balance or home value, whichever is less.
Will I ever owe more than my home is worth?
No. All reverse mortgages are "non-recourse" loans, meaning the borrower can never owe more than the value of the home regardless of loan balance.
Can I get a reverse mortgage if there is already a mortgage on my home?
Yes, but any existing mortgages must be paid off at closing. The proceeds from the reverse mortgage may be used for that purpose.
Do I or my heirs have to sell the property to repay the loan?
No. Repayment can be accomplished by a refinancing of the existing reverse mortgage with a conventional mortgage loan.
When does the loan become due and payable?
The loan is due and payable when the last remaining borrower sells the property, permanently leaves the home, or passes away. Until these events take place you live in the home and make no payments to the lender.
If there are no payments, what are my responsibilities?
You are required to pay your property taxes, keep the property insurance current, maintain the home, and notify the lender if you will be away from the property for an extended period of time
Tuesday, November 3, 2009
Money Found In Ohio House's Walls No Treasure
Question – Do you think burying your money in a coffee can or putting it into the walls of your house is a good financial plan?
That is essentially what we do when we pay off our mortgage, of course having no mortgage debt is nice if you have no other financial concerns.
Not taking advantage of a reverse mortgage is like having money buried in your walls.......
Excerpted from article:
Money Found In Ohio House's Walls No Treasure
By Joe Milicia
Associated Press
POSTED: 02:43 p.m. EST, Nov 05, 2008
CLEVELAND: In the end, a contractor who found $182,000 in Depression-era currency hidden in bathroom walls got just a few thousand dollars and, he feels, some vindication.
As for the 21 descendants of Patrick Dunne — a wealthy businessman who stashed money that was minted in a time of bank collapses and joblessness, only to have it divvied up decades later in a similar economic climate — they'll each get a fraction of the find.
Kitts would later call his discovery "the ultimate contractor fantasy."
He was tearing out the bathroom walls of an 83-year-old home near Lake Erie on spring day in 2006 when he discovered two green metal lockboxes suspended by a wire below the medicine chest. Inside were white envelopes with the return address for "P. Dunne News Agency."
"I ripped the corner off of one," Kitts said during a deposition in a lawsuit filed by Dunne's estate. "I saw a 50 and got a little dizzy."
He called Reece, who had hired him for a remodeling project, at work. She got there within 45 minutes.
They counted the cash, piled it on the dining room table and posed for photographs. Both grinned like lottery jackpot winners holding an oversized check.
But how to share? She offered 10 percent. He wanted 40 percent. From there things went sour.
He's often asked why he didn't keep his mouth shut and pocket the money. He simply answers that he wasn't raised that way.
"It was a neat experience, something that won't happen again," Kitts said. "In that regard, it was pretty fascinating; seeing that amount of money in front of you was breathtaking. In that regard, I don't regret it.
That is essentially what we do when we pay off our mortgage, of course having no mortgage debt is nice if you have no other financial concerns.
Not taking advantage of a reverse mortgage is like having money buried in your walls.......
Excerpted from article:
Money Found In Ohio House's Walls No Treasure
By Joe Milicia
Associated Press
POSTED: 02:43 p.m. EST, Nov 05, 2008
CLEVELAND: In the end, a contractor who found $182,000 in Depression-era currency hidden in bathroom walls got just a few thousand dollars and, he feels, some vindication.
As for the 21 descendants of Patrick Dunne — a wealthy businessman who stashed money that was minted in a time of bank collapses and joblessness, only to have it divvied up decades later in a similar economic climate — they'll each get a fraction of the find.
Kitts would later call his discovery "the ultimate contractor fantasy."
He was tearing out the bathroom walls of an 83-year-old home near Lake Erie on spring day in 2006 when he discovered two green metal lockboxes suspended by a wire below the medicine chest. Inside were white envelopes with the return address for "P. Dunne News Agency."
"I ripped the corner off of one," Kitts said during a deposition in a lawsuit filed by Dunne's estate. "I saw a 50 and got a little dizzy."
He called Reece, who had hired him for a remodeling project, at work. She got there within 45 minutes.
They counted the cash, piled it on the dining room table and posed for photographs. Both grinned like lottery jackpot winners holding an oversized check.
But how to share? She offered 10 percent. He wanted 40 percent. From there things went sour.
He's often asked why he didn't keep his mouth shut and pocket the money. He simply answers that he wasn't raised that way.
"It was a neat experience, something that won't happen again," Kitts said. "In that regard, it was pretty fascinating; seeing that amount of money in front of you was breathtaking. In that regard, I don't regret it.
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