Reverse Mortgage

Benzinga  Jul 2  Comment 
This article originally appeared on Unison. Have you ever considered getting a reverse mortgage? If so, you’re not alone. Many of today’s retirees and older homeowners have thought about this type of mortgage. While it is a convenient way...
MarketWatch  Aug 31  Comment 
Changes announced by HUD could change the calculus of whether these loans make sense for certain borrowers.
New York Times  Aug 8  Comment 
They worry that a small wording change in a budget request might increase the chances of surviving spouses losing their homes.
MarketWatch  Jul 28  Comment 
A reverse mortgage is worth exploring if you plan to stay in your house and need to tap home equity.
Motley Fool  Jun 18  Comment 
A reverse mortgage isn't right for everyone and it does have some drawbacks, but for certain people, it can be a solid solution to retirement income needs.
MarketWatch  Mar 30  Comment 
Reverse mortgages differ from other types of home-equity loans in a number of ways, one of which is higher costs.
Motley Fool  Jan 1  Comment 
A reverse mortgage could be an ideal source of money in retirement. But it's important to know the answer to these three things in particular first.
Motley Fool  Dec 17  Comment 
A reverse mortgage can be an effective way to generate income when you need it, but there's a downside to signing up.


Recently after Finance Minister of India had allowed reverse mortgage in the last year did public sector banks like Canara Bank come up with reverse mortgage product i.e Canara Jeevan

Reverse Mortgage is type of mortgage where homeowners can borrow money against the value of their home. No repayment of the mortgage (principal or interest) is required of the borrower(s) until the borrowers are deceased or the home is sold. After accounting for the initial mortgage amount, the rate at which interest accrues, the length of the loan and rate of home price appreciation, the transaction is structured so that the loan amount will not exceed the value of the home over the life of the loan.

Often, the lender will require that there can be no other liens against the home. Any existing liens must be paid-off through the proceeds of the reverse mortgage.

Reverse mortgage is a method of receiving income that people can tap into for their retirement. The advantage of a reverse mortgage is that the borrower's credit is not relevant, and is often unchecked, since the borrower does not need to make any payments. As the home serves as collateral, it must be sold in order to repay the mortgage when borrower dies (in some cases, the heirs have the option of repaying the mortgage without selling the home). These types of mortgages have large origination costs relative to other types of mortgages. These costs become part of the initial loan balance and accrue interest. Senior citizen borrowers with good credit should carefully analyze the options of a more traditional mortgage, such as a home equity loan, against a reverse mortgage.

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