Reverse Mortgage

RECENT NEWS
New York Times  Jun 9  Comment 
Advertising for the complex financial products, which let older people tap into home equity, may confuse or oversimplify, or may omit loan information.
MarketWatch  May 23  Comment 
New federal rules that kicked in last month may make it harder for some people to qualify for reverse mortgages.
Motley Fool  May 13  Comment 
Done right, the reverse mortgage can be a good way to get your hands on some cash in a hurry.
Motley Fool  Apr 1  Comment 
Each year, thousands of unsuspecting homeowners are duped into reverse mortgage scams, says the FBI.
USAToday.com  Jul 29  Comment 
Robert Powell answers reader questions about personal finance
CNNMoney.com  May 16  Comment 
Read full story for latest details.
New York Times  Apr 30  Comment 
Senators Charles Schumer and Barbara Boxer urged the Department of Housing and Urban Development to clarify loans that have saddled middle-age children with their parents' mortgages.
MarketWatch  Dec 17  Comment 
Reverse mortgages aren’t a popular option for many retirees, but that could change dramatically as people consider tapping home equity strategically to bridge the gap between income and expenses in retirement.
The Hindu Business Line  Oct 21  Comment 
The income-tax department's recent move to tax-exempt annuity payments received under a reverse mortgage scheme will make this product an attractive proposition for senior citizens. ...
USAToday.com  Sep 27  Comment 
Agency had big losses as many borrowers took lump-sum payments and later had problems.




 
TOP CONTRIBUTORS

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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