Question:
What are the costs of a reverse mortgage?
Funding the Costs of Your Reverse Mortgage
Homeowners who have paid their original mortgage loans in full are taking advantage of their home equity by drawing it out through a reverse mortgage. A reverse mortgage is much like a typical mortgage. A lending institution will provide the funding based on the value of the home, however, lenders in reverse mortgages will be more interested in repayment than many typical mortgage lenders.
The beauty of the reverse mortgage is the ability to do it for little to no cost. There are costs involved with any large financial transaction. Land and homes are subject to more than most. However, with a reverse mortgage you are drawing equity from your home. This money can be put right in your pocket or bank account, and some can be pre-designated to pay for the closing and other costs of the loan. Be sure that if you are looking into a reverse mortgage, you ask that your closing costs be paid out of the loan proceeds. For people who are ‘house-rich' but a little strapped for cash, a reverse mortgage is a low cost, long term solution.
Mortgages Frequently Asked Questions
Is a longer mortgage more expensive?
What type of loan should you choose?
What is the difference between a fixed refinance and an ARM?
Is refinancing my older home loan a good option for me?
What is important to consider in a mortgage refinance?
Is refinancing home mortgages to extend the term a good idea?
Why should I refinance now instead of waiting?
Should I look into refinancing to get some home improvements paid for?
Can a mortgage refinance greatly reduce my monthly payment?
Is refinancing home loans with an interest only option secure?
Should I consult a mortgage broker for my new home purchase?
What are the risks of adjustable mortgages?
How can I pay my mortgage loan off faster?
Should I take a prepayment penalty on my adjustable rate mortgage?
What are the costs of a reverse mortgage?
What is an interest only mortgage?
How should I choose a mortgage broker for my home loan?
What are the main things to pay attention to when shopping mortgages?
How can I get a mortgage loan for a fast closing?
What does an ‘adjustment’ mean in an adjustable rate mortgage?
How do I know how long to finance my mortgage?
What is a ‘flex’ interest only mortgage?
How can I find an online mortgage calculator?
Why would I use a mortgage payment calculator?
What are the benefits of an interest only mortgage calculator?
Should I use a mortgage amortization calculator to compare different loan scenarios?
Should I use a mortgage interest calculator to calculate my adjustments?
What are the benefits of a mortgage calculator?
Can a mortgage payment calculator help with my refinance?
How can I best utilize an interest only mortgage calculator?
Can a mortgage amortization calculator help me choose between a 15 and a 30 year mortgage?
Should I use a mortgage interest calculator to choose between a fixed or adjustable rate?
How can I avoid needing a bad credit mortgage?
Can I find lenders willing to lend bad credit mortgages online?
How can I prepare myself when applying for bad credit mortgage loans?
Can getting a mortgage with bad credit help me in the long term?
Can I get a bad credit second mortgage to consolidate old accounts?
Are there any advantages to getting a bad credit mortgage?
How do I choose between different bad credit mortgages?
How can I find varying rates for bad credit mortgage loans?
Should I look into refinancing a mortgage even with bad credit?
When should I refinance my bad credit mortgage?
Where can I research refinance rates?vvvv
What are the refinancing rates for a ‘rate and term’ refinance?
How do people ‘buy down’ mortgage rates?
How can I get the lowest mortgage rate possible?vvvvvvv
Should I lock in the current mortgage rate or try to wait for it to go down?
What are the refinance rates for a cash out mortgage refinance?
How high are refinancing rates for mobile homes?
What is the easiest way to lower mortgage rates?
Has the lowest mortgage rate already come and gone?
How can I learn more about the current mortgage rate and where it may go?
Should I take a second mortgage for home improvements?
How can I find equity loans online?
When should I look into home equity loans?
What are the closing costs of a home equity loan?
Should I draw out the maximum from my home equity line of credit?
Should I consolidate my first and second mortgage loans?
What is an interest only equity loan?
What are the benefits of home equity loans?
Should I re-invest the funds from my home equity loan?
Is my home equity line of credit a smart way to start retirement planning?
Should I be patient as a first time home buyer when shopping for homes?
Is it hard to get first time home loans?
How can I secure my first home mortgage loan?
Are there specific first time home buyer programs available?
How can I make the most of my first time home buying experience?
What are the advantages to using a realtor as a first time home buyer?
Are flex options a good idea for first time home loans?
When should I refinance my first home mortgage?
Should I choose an interest only option with my first time home buyer program?
What are some first time home buying tips to help avoid a bad purchase?
Where can I get more info on how to apply for a mortgage online?
Why do I need to give so much information on my mortgage application?
How should I go about filling out a mortgage application online?
What is different about a refinance mortgage application compared to a purchase?
Can I find mortgage application forms online?
Where can I learn how to apply for a mortgage in Florida?
What are some common omissions from a mortgage application?
Should I get a local mortgage broker or stick to a mortgage application online?
Can I resubmit a rejected mortgage application?
Can I submit a mortgage application online for a second mortgage?
How do I go about removing PMI?
Can a piggyback loan help me avoid private mortgage insurance?
How do I use a PMI mortgage calculator?
What determines a private mortgage insurance rate?
What are some ways to avoid PMI?
How can I terminate my PMI early?
Why can banks mandate private mortgage insurance?
Can I find a PMI mortgage calculator on the Internet?
How can I get a lower private mortgage insurance rate?
What should I know about getting and maintaining a home loan?
How do I go about comparing multiple home loans?
How can I pay my home mortgage off early?
Why should I shop for home mortgages online?
Is now a good time to get a home improvement loan?
What should I do if I was late or missed a home loan payment?
Will I save each month if I consolidate multiple home loans into a single mortgage?
Can I use my home mortgage to pay off student loans?
Are there any tax benefits with home mortgages?
Can I get a home improvement loan to repair hurricane damage?
How can I get a bad credit second mortgage?
Do I need to shop around when choosing a home mortgage lender?
Are there advantages to using mortgage brokers?
How do I know I am getting the best deal on my home loan?
What kind of fees should I expect with my home purchase loan?
How can I learn the different terms associated with buying a home?
Can I put down less than 20 percent as a down payment on a new home?
Can I negotiate with the lender for lower costs on my home loan?
Will a bad credit history raise the cost of my home loan?
Which is better: Second mortgage or home equity line?
What do my monthly payments cover on my second mortgage?
What is the difference between adjustable rate mortgages and fixed rate mortgages?
What are the repayment periods on 2nd mortgages?
Are there fees with second mortgages?
How can I make sure my mortgage application gets full consideration?
Can I explain my bad credit history to my lender?
Will my alimony and child support count as income when I apply for a mortgage?
Can a lender reject my mortgage application because I receive public assistance?
How can I protect myself from a bad credit mortgage loan?
Can I find out why my mortgage loan application was turned down?
Can a poor property appraisal hurt my mortgage application?
Whom do I contact with a discrimination complaint?
What can I do to improve my finances and look more attractive to lenders?
What are the advantages of a home equity loan?
What can I use my equity loan for?
Is an equity loan right for me?
How can I protect myself from predatory lending practices?
Can I back out of my equity loan after I signed the papers?
What can I do if I feel I was taken advantage of in securing a home equity loan?
Will I be able to pay off my equity loan when I sell my home down the road?
How much equity should I keep in my home when borrowing against it?
Does HUD sponsor any low-cost equity loans?
How do I find a lender for an equity loan?
Why should I consider refinancing?
How do I know if refinancing is right for me?
How can I build equity more quickly in my home?
Can I refinance loan get rid of my variable rate mortgage for a fixed rate?
With better credit history, can I get better financing on my home loan?
What can I expect when I go to refinance?
What kinds of fees are assessed when refinancing?
Is there a way to speed the processing for my refinancing?
What if the interest rates go up before we close on my refinance loan?
Can a mortgage calculator help me figure my monthly payments?
What kind of online mortgage loan information can I find?
Is there a government-sponsored source that offers guidance for homebuyers?
Can I go online to find a mortgage broker or to get a quote on a home loan?
What do mortgage calculators do?
What is classified as "Bad Credit"?
How Is My Credit Score Calculated and How Can I Help My Credit Report?
Can I Still Get a Fixed Rate Mortgage With My Bad Credit?
What Are My Best Options If I Have Bad Credit?
Will My Closing Costs Be Higher If I Have Bad Credit?
How Can I Fix My Credit to Get a Good Mortgage Rate?
What Records Do I Need to Get a Bad Credit Mortgage?
What Problems Will I Face With Bad Credit & Getting a Mortgage?
Can I Still Use the Internet If I'm Looking For a Bad Credit Mortgage?
How Long Must I Keep a Bad Credit Mortgage?
How Do I Compare the Real Cost of Mortgages?
How Do I Compare Closing Costs of Different Mortgage Loans?
How Do I Compare Mortgage Interest Rates?
Which Is Better? A Fixed Rate or Adjustable Rate Mortgage Loan?
What Are Some Good Mortgage Shopping Techniques?
Should I Use a Mortgage Broker/Company or a Bank?
What Are Points and Why Do I Have to Pay Them?
How Do I Compare the Short- and Long-Term Cost of a Mortgage Loan?
How Do I Know Who To Use for My Mortgage Loan?
A No Points/No Closing Cost Loan or a Lower Rate Loan. Which Is Better?
How Can I Best Use a Home Equity Loan?
Should I Get a Home Equity Loan or Line-of-Credit?
How Does a Home Equity Loan Work?
How Does a Home Equity Line-of-Credit Work?
Why Use a Home Equity Loan Instead of a First Mortgage Refinance?
Is a Home Equity the Same as a Second Mortgage?
What Does It Cost to Get a Home Equity Loan?
What Is Equity and How Large a Loan Can I Get?
What Is the Difference Between a Home Equity Loan and a Home Improvement Loan?
I've Never Owned a Home. Where Do I Start?
What Questions Should I Ask of a Mortgage Lender?
Are Their Mortgage Programs Just For First Time Home Buyers?
Can Someone Explain How Mortgage Interest Rates Work?
How Can I Minimize Closing Costs?
What Are Origination, Loan Discount, and Junk Fees?
The Two What Are The Most Important Things to Consider as a First Time Home Buyer?
Should I Consider a "Government Mortgage"(Whatever That Is) for my First Loan?
Should I Consider a Condo, Multi-Family or Single Family Home?
What Is “Pre-Paid Interest” and Why Do I Have to Pay in Advance?
Should I Use a Realtor Or Do It Myself?
What Are the Basic Rules for Getting a Mortgage?
How Do I Qualify for a Home Loan?
Are There Differences Among Single Family, Condominium, and Multi-Family Home Mortgages?
What Is the Difference Between Fixed Rate and Adjustable Rate Mortgages?
I Only Need a 22-year Mortgage. What Should I Do?
How Does an Interest-Only Mortgage Work?
What are the Advantages of a 15-year Mortgage?
What Is RESPA and Why Is It Important to Me?
What Is a “Negative Amortization” Mortgage?
What Are Closing/Settlement Costs?
What Is a “Government” Mortgage?
Can I Make a Mortgage Application over the Internet?
Should I Use a Mortgage Company, Broker, Bank, or Credit Union?
What Information Do I Need to Apply for a Mortgage?
What Does It Cost to Apply for a Mortgage Loan?
My Credit is Not Very Good. Should I Apply for a Mortgage Loan?
Should I Apply With More Than One Mortgage Lender?
How Long Should It Take to Get an Approval and Close a Mortgage Loan?
I Want to Apply for an Investment Property Mortgage. What Information Do I Need?
What Information Do I Need to Apply for a “Government” Mortgage Loan?
Is a Second Mortgage the Same as an Equity Loan?
What Are Some Good Reasons to Get a Second Mortgage Loan?
How Is a Second Mortgage Different From a First Mortgage?
What Are the Fees and Closing Costs for a Second Mortgage?
How Is a Second Mortgage Different from a Home Equity Line-of-Credit (HELOC)?
How Long Will I Have to Pay Off a Second Mortgage?
Should I Get a Second Mortgage to Do Home Improvements?
Why Are Second Mortgage Rates Higher Than First Mortgage Rates?
What Are the Alternatives to a Fixed Rate for a Second Mortgage?
When Would a First Mortgage Be Better Than a Second Mortgage or Vice Versa?
Should I Consider an Interest-Only Mortgage?
What Are the Differences Between Fixed Rate vs. Adjustable Rate Mortgage (ARM) Interest Rates?
Will I Get a Better Interest Rate If I’m Purchasing or Refinancing Real Estate?
Will I Get a Better Interest Rate If I Choose a 15-Year vs. a 30-Year Mortgage Loan?
What Happens to My Rate If I Choose a 40-Year Fixed Rate Mortgage Loan?
How Does an Adjustable Rate Mortgage Interest Rate Change Work?
When I’m Shopping, How Do I Know an Interest Rate is “Legitimate”?
Should I Include Closing Costs And Points in a Refinance?
If the Interest Rate Increases After I Make Application, What Happens?
Is There a Best or Worst Time to Apply or Lock an Interest Rate?
Are the Rates Higher With Government Mortgages?
What Critical Things Should I Look for in an Adjustable Rate Mortgage (ARM)?
Where Can I Find a Mortgage Calculator?
What Can a Mortgage Calculator Do for Me?
How Do I Use a Mortgage Calculator?
What Is a 30 Year Fixed Rate Mortgage Loan?
What Is a 15 Year Fixed Rate Mortgage Loan?
How Does a Six Month Adjustable Rate Mortgage Work?
Is a One Year Adjustable Rate Mortgage a Good Loan?
Should I Consider aThree Year Adjustable Rate Mortgage?
| Guru Spotlight |
| Jennifer Mathes, Ph.D. |
