Who you, a Guru? After you read these 262 Mortgages tips, you'll be one. But we're looking to recruit a Guru to blog, write a 101 tip Mortgages book, and become a leader of this community.
Hot topics for both consumers and webmarketers on WebmasterRadio.FM
Every Wednesday, 4PM Eastern.
December 5, 2008, Newsletter Issue #145: HUD's Version of the Equity Loan Appeals to Seniors
1
Tip of the Week
HUD offers a reverse mortgage program for older homeowners that works like an equity loan but with some key differences. Like traditional equity loans, the HUD program lets people borrow against the equity in their homes.
You must be 62 or older and have paid off your mortgage to qualify. In some cases homeowners with only a small payment left on their mortgages can get this HUD-sponsored equity loan. Known as a reverse mortgage, the program lets homeowners receive payments in a lump sum, monthly, or occasionally as a line of credit.
The size of the equity loan is determined in part by the borrower's age. The older the borrower is, the more he or she may receive. The condition of the home and interest rates also affect the amount. Unlike ordinary home equity loans, the borrower does not need to pay back the reverse mortgage as long as he or she lives in the house as a parimary residence.
When the home is sold, the lender is repaid the principal, plus interest. Whatever is left goes to the homeowner or the heirs of the homeowner. If there is a shortfall, HUD covers the difference. All borrowers must pay insurance to the Federal Housing Administration, or FHA, to participate in the program.
2
About LifeTips
Now one of the top on-line publishers in the world, LifeTips offers
tips to millions of monthly visitors. Our mission mission is to make
your life smarter, better, faster and wiser. Expert writers earn dough
for what they know. And exclusive sponsors in each niche topic help us
make-it-all happen.
LifeTips is part of ideaLaunch, the hub for a group of websites offering
solutions that help clients improve mind share, market share and profit online.
