Features Of Reverse Mortgage Loans

Three types of reverse mortgages are known. They are HECM or Home Equity Conversion Mortgage, Private Cash Account and Home keeper Reverse Mortgage. Features of reverse mortgage loans may differ depending on the loan program availed by a borrower.
It may be mentioned here that the different mortgage loan types have flexible options and depending on the need of the borrowers, the mortgage loan counselors may be approached.

Features of reverse mortgage loans of these three types of loans are as follows:

  • Features of Private Cash Account:
    Closing costs are higher
    Meant for homes whose valuation exceeds $500,000
    Is equipped with Equity Sharing High Benefit Option
    Has Growing Line Of Credit
    Income options are flexible

    Features of HECM Features:
    The Housing and Urban Development guarantees this type of reverse mortgage loan.
    Growing Line of Credit
    Income payment options have flexibility
    Lending limit is maximum (differs from one city to another)

    Features of Home Keeper:
    Fannie Mae guarantees this reverse mortgage loan
    Closing costs are low
    Maximum limit of lending (differs from one city to another).
    Line of Credit Growth absent.
    In addition to the above, there are other features of reverse mortgage loans.

    They are as follows:

    Financing cost of loans:

    The various costs associated with the loan may be financed with the proceeds of a reverse mortgage.

    Loan program:

    Depending on the reverse mortgage loan plan opted for, an individual receives the loan funds

    Ownership:

    A borrower continues to be the owner of the home despite availing a reverse mortgage and he is still required to shell out the property taxes and the other needful payments associated with the property.

    Repayment:

    The payment of the reverse mortgage is to be paid(by the surviving borrower) when the house is sold off.

    Paying off old debt:

    Prior to availing the reverse mortgage, the older debt must be paid off. This may be done either by paying off the debt with ones own funds or using the fund of reverse mortgage for the same. n

    More Information on Mortgage
    Underwritten Mortgage Lending Commercial Mortgage Lender
    Reverse Mortgage Mortgage Lender Types
    Mortgage Companies USA Mortgage Marketing
    Mortgage Referral Mortgage Rate
    Mortgage Companies Reverse Mortgage Consumer Tips
    Private Mortgage Lender Reverse Mortgage Features
    Mortgage Brokers Reverse Mortgage Marketing
    Fixed Rate Mortgage Loan National Lenders Association
    Home Mortgage Reverse Mortgage Rules
    Mortgage Lending Mortgage Companies UK

    Last Updated on : 24th August 2013