Common Use Of Reverse Mortgage Funds
Topics: reverse mortgage money, reverse mortgage funds
As I talk to borrowers and their families, I’m often asked what restrictions there are on the use of the funds from a reverse mortgage. The answer is simple, there are no requirements or restrictions on what you can do with your money, only restrictions against what you must do with the proceeds.
In other words, no lender can grant you a reverse mortgage on the condition that you purchase annuities with the money or that you have a prior agreement with
someone that you must use your funds for any other type of investment. Obviously, this does not include all loans and other liens against the property, those would have to be paid in full to protect the lenders lien position.
So now that you have paid off all the loans or didn’t have any to pay off, what ARE you going to do with your reverse mortgage proceeds? Well, you can use the money to have a monthly payment sent to you for life. If you are looking for additional monthly income for living or medical expenses many senior homeowners elect a monthly payment to augment their income so that they can better afford the rising costs of living, pay taxes and insurance, pay for prescription drugs or even give themselves a little breathing room so they can better enjoy their lives.
Then there are those borrowers who say that they don’t need any help on their monthly obligations. To that I say you may not be a candidate for a reverse mortgage but then again, maybe you still are! I’m a mortgage banker/mortgage broker by trade and I would always suggest that before you make any decisions affecting your home that you seek the competent counsel of a professional in the area you wish to explore, but lately I’ve had more seniors who have come to me with plans they received from their tax and estate planners, information regarding college needs of family members and other investments. Don’t get me wrong, I am NOT advocating any investments or schemes.
However, I have seen how plans have been put together allowing for investment, annuities and life insurance policies that actually allowed the senior borrower to put the dormant equity to work for them while still employing a method by which the mortgage was paid off with a life insurance policy.
Then there are those borrowers who just want to get out and travel, spend their time at an activity which may require more capital than they were comfortable expending without their reverse mortgage or wanted to help children and grandchildren fulfill their dreams. Again, I always recommend that senior borrowers find competent counsel but reverse mortgages aren’t just for those who are House Rich and Cash Poor and may be the right choice for you.
Michael G. Branson is a Mortgage Broker Licensed in several states who has over 31 years of mortgage banking experience.
Please visit us online at www.allrmc.com
or call toll free (888) 801-2762
Previous Articles Highlighter:
Where Do Women Go To Find Business Grants Or Loans (1)
One site that is worth checking out is The Ladies Club 2000. It is required that you sign up and become a member. It's free of charge and then you will have access to grant information.
How Do I Put Together A Business Loan Proposal (2)
It's essential to determine if the payment is within your company's budget. If the borrower does not specifically declare exactly where, when and how much money is needed, the lender will decide based on limited information, which can slow down the approval.
Real Estate Investments In Texas (3)
There are many retail spaces still available and a few office spaces as well. With more than enough property going around, it's easy for investors to get a grip on the real estate market in Houston.
Avoid Foreclosure By Doing A Short Sale (4)
This amount can be addressed in three ways: 1) it is forgiven in total, 2) the seller is asked to sign a loan for the amount due or 3) the seller is issued a 1099 at which time a tax specialist should be consulted.
How Filing Bankruptcy Will Ruin Your Personal Credit Rating (5)
How do you know the difference between when you need to file for bankruptcy and just a downtime? There are a few signs you should look for to know when you should file for bankruptcy.
Looking For Car Financing? You Best Option Is Online First! (6)
Sean Patrick works with Car Loan Today. (www.carloantoday.ca) one of the country's top automotive financing web sites. First openning in 2002, they are Ontario's leading provider of car finance, used cars, articles and research.
Cash Flow Management Of Debtors And Creditors In A Credit Crunch (7)
In the UK value added tax can be paid quarterly or monthly, vat cash accounting can ease the tax liability due in critical periods and paye payments can be paid quarterly rather than monthly for smaller businesses.
Amazing Commercial Land Is A Good Investment (8)
If you prefer to buy land in a more intimate setting, there are developments that would suit that, as well as vice versa. Be sure to look at the sizes of the land to make sure it fits your needs.
The Difference Between Penny Stocks And Small-Cap Stocks (9)
Go figure right. The biggest money to be made in these stocks is in conjunction with any news released about the stock since penny stocks are quite sensitive. Because they are so sensitive, small investors have the advantage.
Triple Net Leases Allow Tenants More Freedom And Owners More Profit (10)
A good find can turn into a great find after an attorney evaluates the lease. Then of course, a lawyer can save you much headache and pain when it comes to a triple net lease that shouldn't be touched with a single dollar.
Buying The Best Houston Land For Sale (11)
The Johnson Development Corp. is a Houston-based residential and commercial land development company that has over 40 years of experience in the real estate development business. For more information visit www.johnsondevelopment.com
Short Sales: They May Be Your Answer If You Are Facing Foreclosure (12)
A short sale offer that is as close to the actual market value as possible will more likely be your best approach to getting the bank to consider this option.
Online Car Loans: The Fastest Way To Be In Your Favourite Car (13)
This allows you to get the best car deal around. Be Warned In the case of gaining financing for your desired car, the car that you buy with the loan is used as the collateral.
Arizona Real Estate: Why The Market Is Red Hot (14)
If you have children, you would have to look around for Arizona properties which have good schools around it. Again, you would like to evaluate your lifestyle and see if there is place that is in particular suited to your lifestyle.
Tips On How To Pay Debt To Improve Credit (15)
After your first bill has been paid off, take that payment and put it on the next bill with the highest interest rate. You will be making double payments with additional payments along the way and that bill will soon be gone.
Tracking Down Top Homes For Sale In Houston (16)
Tuscan Lakes is built on the premise that the dream of a simpler life surrounded by the soothing beauty of the European countryside can be realized every day - not so far away.
How To Find The Top Places To Live In Galveston County (17)
-Work with a real estate agent. This is by far one of the best tips I can give you if you're looking for top places to live in Galveston County.
Going Solo: Selling Your Home Or Investment Property Yourself (18)
Take the time to do your research and you will reap the benefits. You've heard the term 'buyers beware' and the reasoning behind that maxim. There is also the term, maybe not as familiar, "sellers beware", with reasons for that maxim as well.
Can You Refinance Your Reverse Mortgage Loan (19)
The mortgage insurance from the loan being paid off is transferred to the new loan so only the difference from the old level to the new level is what the borrower has to pay on a refinance.
The Absolute Basics For Selling Your House (20)
If you decide you want to ask more, you may have to risk the house being on the market longer. With that, you have the extra carrying costs and the impact it will have on your final profit.
Newer Articles Highlighter:
How Do I Improve My Chances Of Getting A Business Loan (1)
And what kind of loan are you looking for? Now it is on your shoulders to carry off the rest of the deal. Your positive demeanor can be quite effective in winning a favorable impression from the lender about the proposal.
Loss Mitigation: The Art Of Negotiation (2)
We will look a one of these terms and what it means to you. Owners often believe that refinancing their home is an option to get away from their current lenders.
Fearing Foreclosure: There May Be Options Available To Start Over (3)
Talk to your lender, they can inform you of the options that are available to you. An effort on your part to make your payments, doing temporary work or selling some of your assets will demonstrate to the lender that you want to keep your home, who knows, you may be able to catch up on payments doing these few things alone.
Is Intellectual Property A Good Investment? (4)
You have industrial property, which includes patented designs and inventions. Also copyright type productions which include artistic type works and things of a creative nature. It is difficult to put a definite definition on intellectual property.
Home Buyer And Seller Leads - Building Connections To Generate Leads (5)
Remember, relationships are built and strengthened over time and the more past clients you have the more positive leads you'll get. Lead Generation Etiquette Personally connecting with prospects is of the utmost importance in establishing relationships with buyers and sellers.
How To Deal With Bankruptcy (6)
The new laws that went into effect in 2005 are designed to keep more people out of bankruptcy than to allow in. New requirements have been set up such as pre-bankruptcy credit counseling requirements.
Borrowers 'Need To Shop Around' For Personal Loans (7)
Helen Saxon, spokesperson for the Finance and Leasing Association, claimed that the series of interest rate rises by the Bank of England's monetary policy committee since August 2006, in addition to the recent credit crunch, have caused many Britons to "stop and take stock of their borrowing".
Brits Need 'Financial Workout' (8)
In addition, some 81 per cent think that costs are set to rise over the next 12 months. For many, a low cost loan may be an effective source of financial assistance.
How Much Home Can You Afford? Calculating An Affordable Mortgage (9)
Therefore, if you do intend to grow your family, you must make certain that you take this into account when you are looking around the Tampa real estate market for the most ideal home.
Equity Release 'Becoming Mainstream Option' (10)
Topics: more, people, releasing, equity, from, home, to, consolidate, debts, secured, debt, consolidation, loans, credit An increasing number of people are set to turn to equity release as a means of managing their debts, new figures show.
Living In Fort Bend County New Homes (11)
Areas such as Sugar Land and Pearland are growing very rapidly, yet the area is not being allowed to deteriorate due to poor planning and matchbox construction. At the same time, the prices on these new homes are available at all levels so that new homes are affordable for everyone, from first-time home buyers to executive types who want to be able to entertain large groups in their homes.
What Companies Must Know About Freight Factoring (12)
This is where freight factoring can help your business go from slow to quick growth. When you haul freight for your customer or freight broker, you would be issuing a freight invoice.
Searching For Commercial Development (13)
This has largely been a result of insurance concerns, but the low rentals of these facilities are definitely attracting a lot of interest. For those looking to buy commercial development, Houston is a long-term investor's dream.
In Search Of Houston Land (14)
What makes Houston's land for sale so unique is the beautiful acreage that is available. It all has merit and it all has potential. Finding the perfect land might come from an intensive and exhaustive internet search, or it may jump out in front of you during a drive down a quiet back road.
Houston New Homes At Their Best (15)
Any kind of person or family can find a beautiful new home to settle into, and you will have the joy of knowing that you are the first people ever to live within the walls of your new home in your brand new community.
559 Words On Why You Should Invest (16)
Even if you dont have this gift you still can profit quite handsomely from a trend that is hot. Whats hot? The stock market is, even when it is down.
Tuition Reimbursement - Ten Things You Need To Know, Plus One Extra (17)
You need to check out the program and see if you have to stay within certain courses of study. 6. University Acceptance To start a program like this, you will naturally have to apply to the college.
Appraising Properties: An Introduction To Real Estate Valuation (18)
Using a recommended appraiser, in good standing, in the trade organizations will yield the best results when determining a valuation of a property. Appraisals are valuable reports that will keep you from over-paying for a property.
Pre-Foreclosures: A Complete Guide To Buying Them (19)
Homeowners and lenders lose in a home foreclosure auction. Neither party wants it to happen, so both sides are motivated to resolve the situation as quickly as possible. Without motivated parties, investors are not likely to look at the property; motivation is the key to a fast solution.
Foreclosure Pitfall: Private Investors May Cost You Your Home (20)
Remember that threaten your financial position anymore by making an illogical, or unwise decision. The real estate business is shaky, at best, and you do not want to be in the middle of the storm when it comes.