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Wednesday, August 26, 2009
Reverse Mortgage Defined Are you struggling with understanding the terminology used by reverse mortgage lenders? You are not alone. Many mature borrowers, over the age of 62, who are wanting more information about the program or who are in the process of obtaining a reverse mortgage are a little taken aback with the seemingly technical terms of the program or the loan itself. But there is a way to grasp understanding of the reverse mortgage program, which was designed to help you stay in your home and receive various payments for the life of the loan. The frequently used terminology or terms of a reverse mortgage are: Before you begin the reverse mortgage process you must now speak with a reverse mortgage counselor who is a government-approved individual you are required to meet that explains the advantages and disadvantages of a reverse mortgage. Reverse mortgage counselors may assist you with locating a U.S. Department of Housing and Urban Development (HUD) lender who will give you an application to complete, review your qualifications and finalize the terms of your reverse mortgage.
When you apply for a reverse mortgage you are agreeing that you are over the age of 62 years old and that you own your home. You should also have a low enough mortgage balance which can be paid once you close on your reverse mortgage. You will use the equity in your home for the reverse mortgage program. All home types must be inspected to ensure they meet the requirements of HUD.
Your closing costs are the most expensive part of your reverse mortgage process because of the origination fees, title insurance, appraisals, lawyer fees, pest control and other inspections, escrows, credit reports, if there is more than one qualifying borrower and other fees which may be assessed by the mortgage company. The Home Equity Conversion Mortgage or HECM requires a mortgage insurance premium which is also an additional fee to consider.
Once you close on your reverse mortgage you can chose which payment term you would like to receive. Your options are a lump sum, a monthly payment or a credit line, commonly known as a line of credit. All payment terms are dependent on your needs and should be carefully considered. At the end of your loan term or maturation, which may be when you move from your home or upon your death, your reverse mortgage loan will become due and payable.
For the remainder of 2009 President Obama has increased the lending limit to $625,500 for borrowers. This will assist you with receiving a larger loan amount for your reverse mortgage. You are allowed to do whatever you want with your money once your reverse mortgage has closed.
Some reverse mortgage programs do not allow you the right of recession, the ability to refuse or cancel the terms of the reverse mortgage – usually in three days from closing - The HECM for purchase program, a program that allows you to use your equity from your existing home to purchase a new primary residence does not practice the right of recession. Unfortunately, the HECM for purchase program is not allowable in all states.
A thirteen-year veteran of the mortgage industry, Robert Griffin specializes in reverse mortgages and has helped over 3000 Americans find financial security with a reverse mortgage. The owner of Griffin Financial Mortgage LLC, based in Fort Worth, Texas, his memberships include the National Association of Mortgage Brokers (NAMB), the Mortgage Bankers Association (MBA), the National Reverse Mortgage Lenders Association (NMRLA) and the Better Business Bureau (BBB). Robert Griffin is also co-author of “62 Senior Moments.” If you would like more information, please call (866) 683-3690 or complete our online Reverse Mortgage Information.
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Saturday, December 5, 2009
MA beneficiaries receive superior care Seniors in Medicare Advantage spent fewer days in a hospital, were subject to fewer hospital re-admissions, and were less likely to have potentially avoidable admissions, according to data released by America's Health Insurance Plans, or AHIP. In terms of region, findings indicate that Medicare Advantage beneficiaries in California spent 30 percent fewer days in the hospitals than patients with FFS Medicare.
And in Nevada, seniors in Medicare Advantage plans spent 23 percent fewer days in the hospital.
Meanwhile, Medicare Advantage enrollees were re-admitted to the hospital for the same condition 15 percent less often in California, and 33 percent less often in Nevada.
Finally, in both California and Nevada, seniors in Medicare Advantage were 6 percent less likely to be admitted to the hospital for conditions described as "potentially avoidable," such as dehydration, urinary tract infection, or uncontrolled diabetes.
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