Reverse mortgage что это

reverse mortgage

1 reverse mortgage

2 reverse mortgage

3 reverse mortgage

4 reverse mortgage

5 reverse mortgage

6 reverse-annuity mortgage

7 reverse annuity mortgage

8 reverse annuity mortgage

9 reverse annuity mortgage

10 reverse-annuity mortgage

11 reverse annuity mortgage

12 reverse-annuity mortgage

13 reverse annuity mortgage

14 reverse annuity mortgage

15 reverse annuity mortgage

16 reverse-annuity mortgage

17 reverse-annuity mortgage

18 обратная закладная

См. также в других словарях:

reverse mortgage — see mortgage Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. reverse mortgage … Law dictionary

reverse mortgage — n. a loan typically given to an older person who owns a house, usually disbursed in monthly installments, and charged against the homeowner s equity * * * … Universalium

reverse mortgage — n. a loan typically given to an older person who owns a house, usually disbursed in monthly installments, and charged against the homeowner s equity … English World dictionary

Reverse mortgage — A reverse mortgage (known as lifetime mortgage in the United Kingdom) is a loan available to seniors (62 and older in the United States), and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner s … Wikipedia

Reverse Mortgage — A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage (principal or interest) is required until the borrower dies or the home is sold. After accounting for the initial mortgage … Investment dictionary

Reverse Mortgage — Bei einer Umgekehrten Hypothek bzw. Reverse Mortgage handelt es sich um ein Finanzdienstleistungsprodukt, welches in mehreren entwickelten Finanzmärkten (im wesentlichen in den USA) angeboten wird. Diese Bezeichnung ist insofern in ihrer… … Deutsch Wikipedia

reverse mortgage — noun see reverse annuity mortgage * * * reverse annuity mortgage or reverse mortgage, U.S. and Canada. the transfer of a homeowner s mortgage to a bank, lending company, or the like, in return for a regular annuity: »The reverse annuity mortgage… … Useful english dictionary

reverse mortgage. — See reverse annuity mortgage. * * * … Universalium

reverse mortgage. — See reverse annuity mortgage … Useful english dictionary

reverse mortgage — noun Date: 1977 a mortgage that allows especially an elderly person to convert home equity into available funds through a line of credit, cash advance, or periodic disbursements to be repaid with interest usually when the borrower dies, moves, or … New Collegiate Dictionary

reverse mortgage — A mortgage agreement allowing a homeowner to borrow against home equity and receive tax free payments until the total principal and interest reach the credit limit of equity, and the lender is either repaid in full or takes the house. Bloomberg… … Financial and business terms

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America’s #1 rated reverse mortgage lender

Your Home’s Value

Celebrating 17 Years of Excellence.

The leader in lower rates per HUD data.

The Housing & Urban Development (HUD) publishes average interest rate data to the public for each HECM lender.

Since interest rates are a primary factor in determining how much money you can receive, borrowers with the lowest rates will typically receive more proceeds and overall benefits of their reverse mortgage.

In addition, lower rates mean better performance of equity retention over the life of the loan. We encourage you to compare!

If you are new to reverse mortgages, start here!

What is a reverse mortgage?

A reverse mortgage is a loan secured by your home.

It must be your primary residence (that means that you, as the borrower, must live in the home for as long as you have the loan).

This type of loan allows borrowers to access a portion of their equity — tax-free — without having to make monthly mortgage payments.

No payment is required until the last surviving homeowner moves, dies, or sells the home.

The borrower maintains the title of the home and maintains responsibility for property taxes and homeowner’s insurance payments.

The amount borrowers receive is determined by the HUD calculations based on the age of the borrowers (most specifically the age of the youngest borrowing or non-borrowing spouse ), the value of the home or the HUD lending limit, whichever is less and the interest rates in effect at the time.

Borrowers never have to make a monthly payment on reverse mortgage loans.

There is never a prepayment penalty so they can make any payment they wish, including repaying the loan at any time, without penalty.

History

Since its inception, the reverse mortgage program has helped thousands of homeowners just like you to safely access a portion of the equity in their homes to better enjoy their retirement years.

Is a r everse mortgage right for you?

If you are looking for a short-term loan you may be better suited for a different type of financing.

A reverse mortgage loan can sometimes require closing costs and upfront mortgage insurance premiums which would make it impractical as a short-term solution in some cases.

However, for those who wish to remain in their homes and need extra cash flow to do so, the Home Equity Conversion Mortgage may be exactly what you are looking for.

What are the requirements?

How much money can you get?

Generally, you can expect to receive 50-60% of your home value depending on your age, program selection and current interest rates.

The amount available is based on:

Start with a personalized quote by ARLO™ – the only reverse mortgage calculator that offers eligibility, real-time rates, and advice to help you select the right program.

Types of payment options

There are several ways borrowers can receive loan proceeds—a choice that may depend on the reason you are getting a reverse mortgage or the strategy behind it.

Here are the payment options and some considerations:

Payment Option: Line of Credit

The line of credit is the most popular choice among borrowers for receiving their reverse mortgage funds.

Here are some considerations:

Payment Option: Term and Tenure Payments

A term payment gives borrowers fixed payments for a specified amount of time.

A tenure payment allows for monthly payments for the life of the loan, even if the payments exceed the home value.

Here are some considerations:

Payment Option: Lump Sum

Reverse for home purchase

The reverse mortgage for home purchase allows for older Americans to retain more liquidity and an increased cash flow by not having to pay all cash or take on another mortgage payment when purchasing a retirement home.

Qualifications may be easier than traditional forward (or conventional) type financing.

What are the current rates?

Rates as of Learn all about reverse mortgage interest rates and how they affect your available loan and future home equity position.

Required HUD approved c ounseling

Reverse mortgage counseling is required of all borrowers applying for a federally-insured HECM loan.

As a HUD approved lender, we must give you a list of no less than 10 counseling agencies to choose from, five of which are mandated by the FHA and include the National Council on Aging.

Only after we receive your application and signed counseling certificate can we begin the processing of your loan (and any other waiting periods as mandated by state laws).

How is a reverse mortgage repaid?

Reverse Mortgages require no monthly payments for as long as the borrower(s) lives in the home.

The loan becomes due and payable when the last borrower on the original loan permanently leaves the property whether because of death, they have permanently moved to an assisted living facility, to live with family for care or when the borrower sells the home.

At that time, the loan becomes due and payable and the loan must be repaid.

There are several things that borrowers and heirs of reverse mortgage borrowers should do in anticipation of needing to finalize or pay off the loan.

If your heirs do not want to keep the property or sell it, they can simply let the lender take the property back and the lender’s only recourse is the property itself.

The lender cannot look to any other assets to repay the obligation so your heirs will owe nothing, even if the loan balance is higher than the property value.

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reverse mortgage

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Смотреть что такое «reverse mortgage» в других словарях:

reverse mortgage — see mortgage Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. reverse mortgage … Law dictionary

reverse mortgage — n. a loan typically given to an older person who owns a house, usually disbursed in monthly installments, and charged against the homeowner s equity * * * … Universalium

reverse mortgage — n. a loan typically given to an older person who owns a house, usually disbursed in monthly installments, and charged against the homeowner s equity … English World dictionary

Reverse mortgage — A reverse mortgage (known as lifetime mortgage in the United Kingdom) is a loan available to seniors (62 and older in the United States), and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner s … Wikipedia

Reverse Mortgage — A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage (principal or interest) is required until the borrower dies or the home is sold. After accounting for the initial mortgage … Investment dictionary

Reverse Mortgage — Bei einer Umgekehrten Hypothek bzw. Reverse Mortgage handelt es sich um ein Finanzdienstleistungsprodukt, welches in mehreren entwickelten Finanzmärkten (im wesentlichen in den USA) angeboten wird. Diese Bezeichnung ist insofern in ihrer… … Deutsch Wikipedia

reverse mortgage — noun see reverse annuity mortgage * * * reverse annuity mortgage or reverse mortgage, U.S. and Canada. the transfer of a homeowner s mortgage to a bank, lending company, or the like, in return for a regular annuity: »The reverse annuity mortgage… … Useful english dictionary

reverse mortgage. — See reverse annuity mortgage. * * * … Universalium

reverse mortgage. — See reverse annuity mortgage … Useful english dictionary

reverse mortgage — noun Date: 1977 a mortgage that allows especially an elderly person to convert home equity into available funds through a line of credit, cash advance, or periodic disbursements to be repaid with interest usually when the borrower dies, moves, or … New Collegiate Dictionary

reverse mortgage — A mortgage agreement allowing a homeowner to borrow against home equity and receive tax free payments until the total principal and interest reach the credit limit of equity, and the lender is either repaid in full or takes the house. Bloomberg… … Financial and business terms

Источник

Reverse Mortgage

Lea Uradu, J.D. is graduate of the University of Maryland School of Law, a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, Tax Writer, and Founder of L.A.W. Tax Resolution Services. Lea has worked with hundreds of federal individual and expat tax clients.

What Is a Reverse Mortgage?

In a word, a reverse mortgage is a loan. A homeowner who is 62 or older and has considerable home equity can borrow against the value of their home and receive funds as a lump sum, fixed monthly payment, or line of credit. Unlike a forward mortgage—the type used to buy a home—a reverse mortgage doesn’t require the homeowner to make any loan payments.

Instead, the entire loan balance becomes due and payable when the borrower dies, moves away permanently, or sells the home. Federal regulations require lenders to structure the transaction so that the loan amount doesn’t exceed the home’s value and that the borrower or borrower’s estate won’t be held responsible for paying the difference if the loan balance does become larger than the home’s value. One way that this could happen is through a drop in the home’s market value; another is if the borrower lives for a long time.

How Does A Reverse Mortgage Work?

Cash in Equity

Reverse mortgages can provide much-needed cash for seniors whose net worth is mostly tied up in the value of their home. On the other hand, these loans can be costly and complex, as well as subject to scams. This article will teach you how reverse mortgages work and how to protect yourself from the pitfalls, so you can make an informed decision about whether such a loan might be right for you or your parents.

Key Takeaways

How a Reverse Mortgage Works

With a reverse mortgage, instead of the homeowner making payments to the lender, the lender makes payments to the homeowner. The homeowner gets to choose how to receive these payments (we’ll explain the choices in the next section) and only pays interest on the proceeds received. The interest is rolled into the loan balance so that the homeowner doesn’t pay anything up front. The homeowner also keeps the title to the home. Over the loan’s life, the homeowner’s debt increases and home equity decreases.

As with a forward mortgage, the home is the collateral for a reverse mortgage. When the homeowner moves or dies, the proceeds from the home’s sale go to the lender to repay the reverse mortgage’s principal, interest, mortgage insurance, and fees. Any sale proceeds beyond what was borrowed go to the homeowner (if still living) or the homeowner’s estate (if the homeowner has died). In some cases, the heirs may choose to pay off the mortgage so that they can keep the home.

Reverse mortgage proceeds are not taxable. While they might feel like income to the homeowner, the Internal Revenue Service (IRS) considers the money to be a loan advance.

Types of Reverse Mortgages

When you take out a reverse mortgage, you can choose to receive the proceeds in one of six ways:

It’s also possible to use a reverse mortgage called a “HECM for purchase” to buy a different home than the one in which you currently live. Also called a Federal Housing Administration (FHA) reverse mortgage, this type of mortgage is only available through an FHA-approved lender.

In any case, you will typically need at least 50% equity—based on your home’s current value, not what you paid for it—to qualify for a reverse mortgage. Standards vary by lender.

43,000

The number of reverse mortgages issued in the United States in 2020, up 23% from the previous year.

Would You Benefit from a Reverse Mortgage?

A reverse mortgage might sound a lot like a home equity loan or a home equity line of credit (HELOC). Indeed, similar to one of these loans, a reverse mortgage can provide a lump sum or a line of credit that you can access as needed, based on how much of your home you’ve paid off and your home’s market value. But unlike a home equity loan or a HELOC, you don’t need to have an income or good credit to qualify, and you won’t make any loan payments while you occupy the home as your primary residence.

A reverse mortgage is the only way to access home equity without selling the home for seniors who either don’t want the responsibility of making a monthly loan payment or can’t qualify for a home equity loan or refinance because of limited cash flow or poor credit.

What If You Don’t Qualify?

If you don’t qualify for any of these loans, what options remain for using home equity to fund your retirement? You could sell and downsize, or you could sell your home to your children or grandchildren to keep it in the family, perhaps even becoming their renter if you want to continue living in the home.

Pros and Cons of a Reverse Mortgage

Once you’re 62 or older, a reverse mortgage can be a good way to get cash when your home equity is your biggest asset and you don’t have another way to get enough money to meet your basic living expenses. A reverse mortgage allows you to keep living in your home as long as you keep up with property taxes, maintenance, and insurance and don’t need to move into a nursing home or assisted living facility for more than a year.

However, taking out a reverse mortgage means spending a significant amount of the equity that you’ve accumulated on interest and loan fees, which we will discuss below. It also means that you likely won’t be able to pass down your home to your heirs. If a reverse mortgage provides a short-term solution to your financial problems rather than a long-term one, then it may not be worth the sacrifice.

What if someone else, such as a friend, relative or roommate, lives with you? If you get a reverse mortgage, that person won’t have any right to keep living in the home after you pass away.

Another problem that some borrowers run into with reverse mortgages is outliving the mortgage proceeds. If you pick a payment plan that doesn’t provide a lifetime income, such as a lump sum or a term plan, or if you take out a line of credit and use it all up, you might not have any money left when you need it.

What Are the Requirements for a Reverse Mortgage?

If you own a house, condominium, or townhouse, or a manufactured home built on or after June 15, 1976, then you may be eligible for a reverse mortgage. Under FHA rules, cooperative housing owners cannot obtain reverse mortgages since they do not technically own the real estate in which they live but rather own shares of a corporation. In New York, where co-ops are common, state law further prohibits reverse mortgages in co-ops, allowing them only in one- to four-family residences and condos.

While reverse mortgages don’t have income or credit score requirements, they still have rules about who qualifies. You must be at least 62 years old, and you must either own your home free and clear or have a substantial amount of equity (at least 50%). Borrowers must pay an origination fee, an up-front mortgage insurance premium, ongoing mortgage insurance premiums (MIPs), loan servicing fees, and interest. The federal government limits how much lenders can charge for these items.

Lenders can’t go after borrowers or their heirs if the home turns out to be underwater when it’s time to sell. They also must either allow any heirs several months to decide whether they want to repay the reverse mortgage or allow the lender to sell the home to pay off the loan.

Your responsibilities under the reverse mortgage rules are to stay current on property taxes and homeowners insurance and keep the home in good repair. And if you stop living in the house for longer than one year—even if it’s because you’re living in a long-term care facility for medical reasons—then you’ll have to repay the loan, which is usually accomplished by selling the house.

Aside from the potential for scams targeting the elderly, reverse mortgages have some legitimate risks. Despite recent reforms, there are still situations when a widow or widower could lose the home upon their spouse’s death.

What Are the Costs of a Reverse Mortgage?

HUD adjusted insurance premiums for reverse mortgages in October 2017. Since lenders can’t ask homeowners or their heirs to pay up if the loan balance grows larger than the home’s value, the insurance premiums provide a pool of funds that lenders can draw on so that they don’t lose money when this happens.

Reverse Mortgage Lenders

To obtain a reverse mortgage, you can’t just go to any lender. Reverse mortgages are a specialty product, and only certain lenders offer them. Some of the biggest names in reverse mortgage lending include American Advisors Group, One Reverse Mortgage, and Liberty Home Equity Solutions.

It’s a good idea to apply for a reverse mortgage with several companies to see which has the lowest rates and fees. Even though reverse mortgages are federally regulated, there is still leeway in what each lender can charge.

Reverse Mortgage Interest Rates

Only the lump sum reverse mortgage, which gives you all of the proceeds at once when your loan closes, has a fixed interest rate. The other five options have adjustable interest rates, which makes sense since you’re borrowing money over many years, not all at once, and interest rates are always changing. Variable-rate reverse mortgages are tied to the London Interbank Offered Rate (LIBOR).

In addition to one of the base rates, the lender adds a margin of one to three percentage points. So if the LIBOR is 2.5% and the lender’s margin is 2%, then your reverse mortgage interest rate will be 4.5%. As of January 2020, lenders’ margins ranged from 1.5% to 2.5%. Interest compounds over the life of the reverse mortgage, and your credit score does not affect your reverse mortgage rate or your ability to qualify.

How Much Can You Borrow with a Reverse Mortgage?

However, you can’t borrow 100% of what your home is worth, or anywhere close to it. Part of your home equity must be used to pay the loan’s expenses, including mortgage premiums and interest. Here are a few other things that you need to know about how much you can borrow:

The federal government lowered the initial principal limit in October 2017, making it harder for homeowners, especially younger ones, to qualify for a reverse mortgage. On the upside, the change helps borrowers preserve more of their equity. The government lowered the limit for the same reason that it changed insurance premiums: because the mortgage insurance fund’s deficit had nearly doubled over the past fiscal year. This is the fund that pays lenders and protects taxpayers from reverse mortgage losses.

To further complicate things, you can’t borrow all of your initial principal limits in the first year when you choose a lump sum or a line of credit. Instead, you can borrow up to 60%, or more if you’re using the money to pay off your forward mortgage. If you choose a lump sum, the amount that you get up front is all you will ever get. If you choose the line of credit, then your credit line will grow over time, but only if you have unused funds in your line.

Reverse Mortgages, Your Spouse, and Your Heirs

Both spouses have to consent to the loan, but both don’t have to be borrowers, and this arrangement can create problems. If two spouses live together in a home but only one spouse is named as the borrower on the reverse mortgage, then the other spouse is at risk of losing the home if the borrowing spouse dies first. A reverse mortgage must be repaid when the borrower dies, and it’s usually repaid by selling the house. If the surviving spouse wants to keep the home, then the mortgage loan will have to be repaid through other means, possibly through an expensive refinance.

Only one spouse might be a borrower if only one spouse holds title to the house, perhaps because it was inherited or because its ownership predates the marriage. Ideally, both spouses will hold title and both will be borrowers on the reverse mortgage so that when the first spouse dies, the other spouse continues to have access to the reverse mortgage proceeds and can continue living in the house until death. The non-borrowing spouse could even lose the home if the borrowing spouse had to move into an assisted living facility or nursing home for a year or longer.

Avoiding Reverse Mortgage Scams

With a product as potentially lucrative as a reverse mortgage and a vulnerable population of borrowers who may either have cognitive impairments or be desperately seeking financial salvation, scams abound. Unscrupulous vendors and home improvement contractors have targeted seniors to help them secure reverse mortgages to pay for home improvements—in other words, so they can get paid. The vendor or contractor may or may not actually deliver on promised, quality work; they might just steal the homeowner’s money.

Relatives, caregivers, and financial advisors have also taken advantage of seniors either by using a power of attorney to reverse mortgage the home, then stealing the proceeds, or by convincing them to buy a financial product, such as an annuity or whole life insurance, that the senior can only afford by obtaining a reverse mortgage. This transaction is likely to be only in the so-called best interest of the financial advisor, relative, or caregiver. These are just a few of the reverse mortgage scams that can trip up unwitting homeowners.

Do This to Avoid Foreclosure from a Reverse Mortgage

Another danger associated with a reverse mortgage is the possibility of foreclosure. Even though the borrower isn’t responsible for making any mortgage payments—and therefore can’t become delinquent on them—a reverse mortgage requires the borrower to meet certain conditions. Failing to meet these conditions allows the lender to foreclose.

As a reverse mortgage borrower, you are required to live in the home and maintain it. If the home falls into disrepair, it won’t be worth fair market value when it’s time to sell, and the lender won’t be able to recoup the full amount that it has extended to the borrower. Reverse mortgage borrowers are also required to stay current on property taxes and homeowners insurance. Again, the lender imposes these requirements to protect its interest in the home. If you don’t pay your property taxes, then your local tax authority can seize the house. If you don’t have homeowners insurance and there’s a house fire, the lender’s collateral is damaged.

About one in five reverse mortgage foreclosures from 2009 through 2017 was caused by the borrower’s failure to pay property taxes or insurance, according to an analysis by Reverse Mortgage Insight.

Average interest rates by month for home equity conversion mortgages (HECMs). Individual rates will depend on lenders and type of payout (fixed annuity, lump sum, etc.).

Is a reverse mortgage expensive?

Home equity conversion mortgages (HECMs), the most common type of reverse mortgage, bring a number of fees and costs. Some are one-time fees, and some are ongoing costs.

Before even taking on the reverse mortgage, all borrowers taking out a HECM reverse mortgage loan must undergo counseling from a U.S. Department of Housing and Urban Development (HUD)-approved reverse mortgage counselor. Counseling costs will vary, depending on the agency and the borrower’s specific circumstances. Other fees include origination fees, closing costs, and mortgage insurance premiums. You’ll also have to pay servicing fees to the lender for costs such as sending account statements, distributing loan proceeds, and making certain that you keep up with the loan requirements.

How does a reverse mortgage work when you die?

It’s important to have a plan to deal with your reverse mortgage loan after you die. Family members also need to understand their options for keeping the house, as well as their payment responsibilities. Repaying the loan can get complicated, depending on how much equity you have in your house and whether you want the house to stay in your family after your death.

How do you repay a reverse mortgage?

You do not have to repay a reverse mortgage unless you are selling the home, are residing outside the home for more than a year, or pass away. If selling, you can use the proceeds from the sale to pay off the reverse mortgage. If the reverse mortgage comes due as a result of residing outside of the home, even involuntarily because of medical needs, you may not have the funds to pay off the reverse mortgage and may lose your home. This is one of the biggest risks in a reverse mortgage. In the event of your passing, your heirs will be responsible for paying off the reverse mortgage with other funds from your estate, their own funds, or proceeds from the sale of the home.

Can you refinance a reverse mortgage?

Yes. You can refinance a reverse mortgage as long as it has been at least 18 months since you closed on the original reverse mortgage. Due to the exceptionally high origination fee and other fees, refinancing a reverse mortgage should be reserved for situations where a spouse needs to be added to the loan, more equity is needed, or the interest rate can be lowered substantially.

The Bottom Line

A reverse mortgage can be a helpful financial tool for senior homeowners who understand how the loans work and what tradeoffs are involved. Ideally, anyone interested in taking out a reverse mortgage will take the time to thoroughly learn about how these loans work. That way, no unscrupulous lender or predatory scammer can prey on them, they’ll be able to make a sound decision even if they get a poor-quality reverse mortgage counselor, and the loan won’t come with any unpleasant surprises.

Even when a reverse mortgage is issued by the most reputable of lenders, it’s still a complicated product. Borrowers must take the time to educate themselves about it to be sure that they’re making the best choice about how to use their home equity.

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