Christian Information On Reverse Mortgages
Christian information on reverse mortgages can help to make a great opportunity to acquire the proper funds needed, but most importantly, find the right opportunity for the specific situation. This mortgage is unique in that the lender pays the borrower, rather than the opposite. The homeowner gets cash for their home equity. With the information on reverse mortgage in hand, people can benefit from this unique type of loan. To determine if a person is eligible, information on reverse mortgages will usually include requirements such as a person must be 63 years of age or older and must have paid off their current loan or have a low remaining balance. Also, there is a limit on the amount set by the lender, usually between $300,000 and $400,000.
The most basic source is the local library. To get the most information on reverse mortgages, seniors may want to consider taking a course about it. There are online courses and sometimes courses available through counseling agencies. For more information on reverse mortgage courses, look online or contact the National Reverse Mortgage Lenders Association. "The heart of the prudent getteth knowledge; and the ear of the wise seeketh knowledge" (Proverbs 18:15).
Gaining this specific knowledge will tell someone that homeowners do not pay taxes, and it doesn't affect social security or Medicare benefits. Fortunately, eligible homeowners are not required to have an income. The homeowner only has to pay back the mortgage if they die, move out, or sell the home. Typically to repay, a living relative will sell the home. For more requirements, schedule a meeting with a HUD approved counselor. This person will be able to tell a person about credit, employment, and other such requirements. Most information on reverse mortgage is free so take advantage of this free learning resource.
Most research will describe the disadvantages of this type of financing. A reverse mortgage has higher fees than a normal mortgage. The fees are high because it is a last resort for people who have no income. Also, once a person signs the dotted line, the lender technically owns their home since it's acting as collateral once again. All information on reverse mortgages will tell someone that people with a reverse mortgage still have to pay home insurance, taxes and repairs. It is important to budget for all housing expenses before signing any mortgage papers. If home ownership is important then doing it right is most imperative.
Reverse mortgage info is available for those who are seeking a way to utilize the equity in their home for a supplemental retirement fund in cash that can be used immediately. When seeking such information, people must understand that this type of unique loan allows only those homeowners that are age 62+ to convert part of the equity in their homes into tax-free income without being forced to sell the home, give up their title, or take on a new monthly house payment, like an equity loan. The reverse mortgage information available allows for the payment stream to be "reversed", which means that instead of making monthly payments to a lender, the lender makes payments to the homeowner.
It is free to receive reverse mortgage information so homeowners should learn as much as possible. "The wise in heart shall be called prudent: and the sweetness of the lips increaseth learning" (Proverbs 16:21). Just about any lender can offer details such as that fact that the funds received from this option can be used for anything, including food, daily living expenses, home repairs or modifications, health care expenses, debt management, and any other need or desire. There is no income or medical requirement to qualify. Lenders with reverse mortgage info will also tell homeowners that they can qualify and still owe money on a first or second mortgage. In addition, they can choose the type of payment they would like to receive from a one-time lump sum; fixed monthly payments (for up to life); a line of credit; or a combination of these.
The most popular option, according to reverse mortgage information, is the line of credit, which allows homeowners to draw on the loan proceeds at anytime. The amount of money received depends on multiple factors. The age of the homeowner, the type of loan chosen, the appraised home value, current interest rates, and the location of the home determine the loan limit the homeowner receives. The older the home gets, the more valuable it is and the more money the owner will get. The funds distributed by the lender are tax free, according to reverse mortgage information available. The premise is that the money is the homeowner's already, not additional income.
The money does not affect SS or Medicare benefits. To receive more reverse mortgage info, it is advised to contact the local Area Agency on Aging, a lender, or a tax attorney. Before applying, homeowners are required to attend a reverse mortgage info counseling session. This session will educate homeowners about their options, and assist them should they decide to apply for a reverse mortgage. The goal is to assess an individual's situation and determine their needs to be sure that this option is the appropriate step.
Christian Reverse Mortgage LenderReverse mortgage lenders provide funding to people, usually senior citizens, based on the equity of the home. A reverse mortgage lender uses the equity on a person's home to pursue a loan that they never have to pay back as long as they follow some criteria. This equity is commonly seen in the form of cash. The loan holder must maintain their home to preserve its current value, keep the home as their primary residence, and still pay property taxes.
The biggest reverse mortgage lenders are large organizations, which include the FHA, Fannie Mae, and Financial Freedom Plan. However, a loan starts with individual brokers. A reliable reverse mortgage lender can be found online and can be counted on especially if they are registered with the national association. Finding a qualified, trustworthy, and professional broker will be one of the most difficult steps for the individual and should be done with careful consideration.
Taking the time to locate a professional for assistance can help individuals determine if this financial program is right for them. The reverse mortgage lender can explain how this funding works to the benefit of the individual. Much like a home equity line of credit, a reverse mortgage uses the equity in the home. Unlike equity lines, this also bases the amount received on the individuals age. The youngest member of the couple is the gauge to which this amount is measured. The older the individuals and the higher the value of the home will allow for a much larger amount of money to be offered by the lending company. There are other points that the reverse mortgage lenders must take into account, including interest rates and the local lending limit, but this information often takes a back seat to the age and equity. It is very important to make sure the broker provides adequate information before the agreement is made because this type of transaction is not very common or well known for the majority of people.
The National Reverse Mortgage Lenders Association has a code of conduct for their members that include treating clients with respect, informing clients of all possible programs and costs, and to generally have integrity in all of their business dealings. Though not a religious or even Christian organization, the reverse mortgage lender association's code of conduct reflects some biblical principles. Proverbs 20:7 says, "The just man walketh in his integrity." Financial and lending companies are called to be people and companies of integrity as well.
Reverse mortgages are loans that the borrowers are not required to repay until they move, sell the house, or die. Based on the equity built up in the house over time, a reverse mortgage can give the borrower money through one of several options: as a lump sum payment, a monthly income, or a combination of both. Although a home equity loan can also provide these options, the borrower runs a risk of losing the house to foreclosure.
These types of mortgages are usually taken on homes owned by people needing to borrow cash from the home's equity to pay for home repairs or property taxes. These homeowners are usually in the moderate to low income bracket. A reverse mortgage may be offered through local, state, or federal government organizations. These offers are generally made to elderly citizens, and their age is a definite factor in the amount of loan available. Another factor, of course, is the value of the home. The elderly generally are more inclined to stay in their homes as opposed to selling and moving; therefore this kind of mortgage is a good option for them.
The age of the borrower and the value of the property will determine the amounts that can be loaned in reverse mortgages. There are various types of mortgages available, and the lender determines the loan amounts based on their policies and regulations. The repayment structure is also determined by the lender. One type, called the Home Equity Conversion Mortgage, is strictly regulated by the Federal Housing Administration. This agency is a division of the federal Housing and Urban Development (HUD) organization. These regulations by the federal authority include the amount of loan costs and also guarantee the lender will meet their obligations to the borrower.
The note is due and payable usually at the time of the homeowner's and all eligible borrowers' deaths. However, other situations can cause the reverse mortgage loan to involuntarily come due, such as moving to another primary residence; allowing the property to deteriorate and failure to try to maintain its acceptable condition; failure to live in the home for more than a year; the borrower's personal mental incapacity to live at home instead of an institution; and failure to pay property taxes or other borrower obligation. Condemnation for being unfit to live in, as well as government claim by imminent domain laws, will also predicate a due and payable loan.
In actuality the need for a Christian elderly person to be in such a needy state that requires a reverse mortgage is a sad testament to how their finances may have been mishandled earlier in life, although this is not always the case. The writer of 2 Corinthians 12:14b notes "for the children ought not to lay up for the parents, but the parents for the children." Financial need in one's old age is sad. However, taking advantage of the home's equity in reverse mortgages is not a sin, and those who have it to use should be grateful.