mortagesandforeclosures

Why a Lifetime Mortgage Can Hurt Seniors in the Long RunThe Dangers of a Reverse Mortgage Loan: Introduction To The Lifetime MortgageMany years ago, the only way an individual or couple could get money from their home was to rent it out, sell it, or refinance it through home equity loans. In the past few years, reverse mortgage loan options or also known as lifetime mortgage loans, have skyrocketed. Reverse mortgage
?loans (lifetime mortgage) allow senior citizens that are over 62 years of age to defer mortgage payments until either the individual or couple dies, sells the home, or is put into a nursing home. The purpose of reverse mortgage loans (lifetime mortgage) is so the senior citizen(s) does not have to move out of the house, sell it, or make monthly payments. The house is paid off when the above happens to the individual(s) with their reverse mortgage loan (lifetime mortgage).The Dangers of a Reverse Mortgage Loan: A Lifetime Mortgage Can Be High In Interest & CostsReverse mortgages (lifetime mortgage) has many different fees and requirements compared to regular mortgage loans. According to Wikipedia, "For the most popular type of reverse mortgage in the U.S., the FHA-insured Home Equity Conversion Mortgage (HECM), there is an insurance premium of 2% of the loan and an origination fee in addition to normal closing costs, which are typically several thousand dollars, but vary depending on the third-party costs (appraisal fees, title searches, etc.) which must be undertaken." Anything after $200,000 has another 1% tacked on. The cap is only for below $200,000. Some lenders of reverse mortgages (lifetime mortgage) also charge monthly fees for just have the type of home equity loan.The Dangers of a Reverse Mortgage Loan: "Jumbo" Reverse Mortgages Aren't Insured By the FHAThe Dangers of a Reverse Mortgage Loan

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