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Reverse Mortgage Providing Peace of Mind Without Sacrificing Safety or Security
...... to there financial needs, they are concerned about putting themselves, their home or their family at risk. Following are a few of the safeguards that HUD and Fannie Mae have provided:
1. Loan amounts, interest rates, and loan terms are set by HUD and Fannie Mae and can never vary from one lender to another.
2. HUD and Fannie Mae have established what fees can be charged and has set caps on them all.
3. All programs have lifetime interest rate caps.
4. The term of the loan is 150 years beyond the birth date of the youngest homeowner (i.e. date of birth April 1940, loan expiration April 2090.
5. If a spouse passes, none of the terms of the loan change, and the remaining spouse may stay in the home for as long as they wish.
6. If you are receiving monthly draws from your reverse mortgage, and your check is late for any reason, the lender is required by federal statute to pay the homeowner a 10% late fee.
7. Funds from a reverse mortgage are not considered income and therefore are not taxable and have no affect on ones Social Security or Medicare.
8. If a homeowners health required extended hospitalization or assisted living care outside the home, as long as the homeowner returns to their home within 12 months there is no interruption in the loan.
9. Lenders are not permitted to take any steps in processing a reverse mortgage for any homeowner until the senior has received independent counseling from a certified reverse mortgage counselor.
10. Following the closing of the reverse mortgage the homeowner has a three-day period to reconsider the loan and cancel the transaction without any cost or obligation.
Reverse mortgages provide a safe secure solution for seniors to live out their life in the comfort of their own home with the dignity they deserve.
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