Comments on: Lenders rushing to polish up their reverse mortgage offerings http://reversemortgageloanblog.com/2007/12/03/lenders-rushing-to-polish-up-their-reverse-mortgage-offerings/ News and discussion about Reverse Mortgages Sat, 30 Apr 2011 21:05:04 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Corey Matelli http://reversemortgageloanblog.com/2007/12/03/lenders-rushing-to-polish-up-their-reverse-mortgage-offerings/comment-page-1/#comment-461 Corey Matelli Mon, 03 Dec 2007 17:09:07 +0000 http://reversemortgageloanblog.com/2007/12/03/lenders-rushing-to-polish-up-their-reverse-mortgage-offerings/#comment-461 Oops, now to clarify my own clarification! It should be noted that in order to qualify for a reverse mortgage, the amount of the loan (based on the age of the youngest borrower, the interest rate and the value of the home), should be enough to pay off any debt secured against the home. In the event it is not enough, the borrower would need to "come to the table" with the margin in order to pay off the remaining debt against the home. Thanks! Oops, now to clarify my own clarification! It should be noted that in order to qualify for a reverse mortgage, the amount of the loan (based on the age of the youngest borrower, the interest rate and the value of the home), should be enough to pay off any debt secured against the home. In the event it is not enough, the borrower would need to “come to the table” with the margin in order to pay off the remaining debt against the home.

Thanks!

]]> By: Corey Matelli http://reversemortgageloanblog.com/2007/12/03/lenders-rushing-to-polish-up-their-reverse-mortgage-offerings/comment-page-1/#comment-460 Corey Matelli Mon, 03 Dec 2007 17:04:27 +0000 http://reversemortgageloanblog.com/2007/12/03/lenders-rushing-to-polish-up-their-reverse-mortgage-offerings/#comment-460 Thanks for your article. I would like to clarify a few things in your article which could generate some confusion. First, "The house...must be owned free and clear. If there is any outstanding debt, it must be paid off as part of the closing with proceeds from the loan." I think I know what you meant, but to the layperson, this can be confusing. It is not a prerequisite to qualifying for a reverse mortgage that your home be paid in full. It will be required that any debt against the home be paid in full before any funds will be available to the borrower in either a line of credit, monthly payments or in a lump sum (or combination of the three). Also, "any outstanding debt" only pertains to that which is secured by the home, as opposed to car payments, credit cards, etc. Something else which can lead to confusion is when you said reverse mortgages are also called "home equity conversion loans". This is not to be confused with Home Equity Converstion Mortgages (HECM). While HECM loans are the most popular of all reverse mortgages, they are not the only options in the reverse mortgage market. Many lenders have created proprietary jumbo loans which are designed for homes valued above $500,000. Lastly, it should be noted that while counseling is absolutely required and encouraged, you may "attend" your counseling session in the comfort of your own home, by phone. These sessions commonly take less than an hour, but are comprehensive. The prospective borrower does not need to worry about being inconvenienced to even leave their home to get this important independent information. Thanks for your article. I would like to clarify a few things in your article which could generate some confusion. First, “The house…must be owned free and clear. If there is any outstanding debt, it must be paid off as part of the closing with proceeds from the loan.” I think I know what you meant, but to the layperson, this can be confusing. It is not a prerequisite to qualifying for a reverse mortgage that your home be paid in full. It will be required that any debt against the home be paid in full before any funds will be available to the borrower in either a line of credit, monthly payments or in a lump sum (or combination of the three). Also, “any outstanding debt” only pertains to that which is secured by the home, as opposed to car payments, credit cards, etc.

Something else which can lead to confusion is when you said reverse mortgages are also called “home equity conversion loans”. This is not to be confused with Home Equity Converstion Mortgages (HECM). While HECM loans are the most popular of all reverse mortgages, they are not the only options in the reverse mortgage market. Many lenders have created proprietary jumbo loans which are designed for homes valued above $500,000.

Lastly, it should be noted that while counseling is absolutely required and encouraged, you may “attend” your counseling session in the comfort of your own home, by phone. These sessions commonly take less than an hour, but are comprehensive. The prospective borrower does not need to worry about being inconvenienced to even leave their home to get this important independent information.

]]> By: Dave Car Loans http://reversemortgageloanblog.com/2007/12/03/lenders-rushing-to-polish-up-their-reverse-mortgage-offerings/comment-page-1/#comment-459 Dave Car Loans Mon, 03 Dec 2007 16:35:25 +0000 http://reversemortgageloanblog.com/2007/12/03/lenders-rushing-to-polish-up-their-reverse-mortgage-offerings/#comment-459 Your comment, "Insurance is one of the most expensive aspects" reminded me of a guy I used to work with. He was always bragging about how his rental property was making him a fortune. Well, it turned out that he had not informed his insurance company that the property was being rented out and therefore when it was destroyed in a fire, he got absolutely nothing. He never did run off at the mouth, quite as much, after that. regards Dave Your comment, “Insurance is one of the most expensive aspects” reminded me of a guy I used to work with. He was always bragging about how his rental property was making him a fortune. Well, it turned out that he had not informed his insurance company that the property was being rented out and therefore when it was destroyed in a fire, he got absolutely nothing. He never did run off at the mouth, quite as much, after that.

regards Dave

]]>