QUESTION:

Reverse Mortgage Definition

A reverse mortgage is mortgage agreement that enables a homeowner who is at least 62 years old to borrow against home equity and receive tax-free payments or lump sum based on the credit limit of their equity. The credit limit is based on the area you live in, the borrowers age and the equity in their house. The debt does not have to be repaid until the owner leaves the house and at that point the lender is either repaid in full or the owner or their estate can give the house to the lender.

It is also sometimes called a HECM - Home Equity Conversion Mortgage.

This site has a pretty good overview of the pros & cons of using a reverse mortgage.

http://www.newretirement.com/Services/Reverse_Mortgage.aspx
asked by SilverSurfer, 7/9/2006
Categories: Retirement Income, Reverse Mortgage, Reverse Mortgage Calculators
ANSWERS:
Answered by: BSeid33859, 02/19/07
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Do all lenders charge the same origination fee? I rently inquires with a lender and was quoted a $4000.00 fee for doing this mortgage on a $200000 house and was told all lenders charge to maximum allowed buy law. Is this correct?

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Answered by: SilverSurfer, 08/29/07
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Some lenders are offering more aggressive terms now depending on the product, if you inquire to multiple providers (which you can do through this site) then you may see different terms.

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