Reverse Mortgage Program

Reverse Mortgage program as the name suggests is a convenient program, where people who are sixty years and above, can mortgage their existing property to get a tax free monthly amount from the bank. The name reverse suggests that after mortgaging the property, bank pays the mortgagee monthly cash payments, which is the other way about in a normal mortgage. The reverse mortgage program is based on the statutory laws related to the particular region and the bank policies. 

Reverse Mortgage program is usually opted for by senior citizens, as it gives them more benefits and a flexible payback options. The amount on a reverse mortgaged property is based on the age of the person who has mortgaged his property, the current value and other basic criteria to qualify for the loan.

Besides an individual home, condominiums, or houses in a township are eligible for reverse mortgage. The proceeds from a reverse mortgage are not taxable and can be used by for any purpose. For example, the borrower can use the money for paying medical bills, for renovating the current property and paying the insurance policy.

Reverse Mortgage Program does attract a service fee, charged on the volume of amount received. The senior citizen, who has mortgaged his property, can continue to enjoy all benefits by the government like medical aid. One of the major benefits of the reverse mortgage program is that you do not have to pay back the loan amount. But if you opt to pay back the borrowed amount, you can do so by either selling the house or refinancing the existing loan.

Reverse Mortgage Pros and Cons

Reverse Mortgage pros and cons explains both the advantages as well as disadvantages of the reverse mortgage program. It is in your interest to study in detail all aspects of mortgage, before going in for one. Considering the positive factors, if you have pledged your property, you continue to remain the title owner.

The mortgaged property can be used by you in any manner and you can also carry out any alterations. You will enjoy a fixed monthly income from the bank on the property pledged. You need not pay any taxes to the government on the income received.

Reverse Mortgage Pros and Cons weigh equally for the property pledged. Considering the cons of reverse mortgage, they are quite expensive as they attract a service fee by the bank. The interest accrued rise on a continuous basis and borrower may have to pay higher interest rates in the long run.

Thus the title owner of the mortgaged property is also required to pay mortgage insurance premium, property taxes, maintenance tames and insurance bills of the existing property. If the home owner opts to take the mortgage amount in bulk and if he exhausts the entire amount on sundry expenses, then he is in a bad financial condition. He may not be able to pay back the borrowed amount with accrued interests. The rising cost of living may make it impossible to meet the expenses with monthly payment received from the bank.

Reverse Mortgage Pros and Cons are thus to be studied in detail and carefully analyzed by all home owners, before pledging their house with a bank.

Reverse Mortgage Refinance

Reverse Mortgage Refinance is opted for by house owners who would like to refinance their property to a different bank, when the property value increases two fold and the interest rate goes down. The person takes a new mortgage loan to pay the existing loan in order to gain by way of higher loan amount at lower interest rates. Many banks are willing to refinance borrowers, considering their age and value of the property.

Reverse Mortgage Refinance helps the elderly to make some quick money, when the Interest rate on the loan amount is going down.

A person should go in for a refinance only if:

• He gets a higher value for his property, under prevailing market conditions.
• The interest rates on the loan amount have come down.
• He would get more monthly payments from the bank.
• His age is always on the upper limit.

Reverse Mortgage Refinance will not yield a good return, if the value of the property has not increased. Opting for refinance under these circumstances will not see any significant increase in the loan amount paid by the bank. So it is very important for an elderly person to consult a good banker on the pros and cons of refinancing an existing mortgaged loan.

People go in for refinance to meet ad hoc expenses or pay for a huge insurance. The banks do charge a hefty fee on refinancing and seniors must take the help of an experienced financial advisor to gain more insight in to such matters. Refinancing should be considered based on the age of the person who mortgages the property.

List of Mortgage Companies You Can Count On

A quality list of mortgage companies include all those companies that deal with mortgage business and have complete expertise in this particular industry. Mortgage companies have a mortgage broker or a mortgage agent who act as a mediator between the companies and individuals.

About Mortgage Lenders

All banks and financial institutions deal with mortgages, which is a lucrative option for making profits. Many mortgage companies have sprouted all over the United States, Australia, UK, and Canada and in all the developed countries. These Mortgage companies are governed by strict state banking laws. These laws vary with each country depending on the local jurisdiction.

The number of mortgage companies is huge, as the market for mortgage is picking up momentum with each passing day. New companies are added to the existing list and you can find every company with a credible client list performing well. People in the current scenario, are increasingly turning to mortgage companies, banks and other financial institutions, before buying a home or a commercial property. Some mortgage companies do charge a high processing fee for the service rendered. The interest rates on the loan vary from one company to another.

Having a good list of top mortgage companies helps us know the credentials of all the mortgage companies operating in the industry. Home mortgage attracts nominal interest rates and varies from one company to another. Brokers are best mediators, when it comes to home mortgages. They have wide contacts with banks, finance institutions and private money lenders and can get you the best possible deal.

The list of best mortgage companies include reputed banks like Bank of America, Citicorp, Federal banks and many others who offer expert service to customers. Some reputed banks and finance companies have their own mortgage agents, who deal with clients on behalf of the banks. They can be trusted for their service as they have a vast clientele from all over the world. The companies do provide all possible options before going for a mortgage loan. The borrower should study the various interest rates applicable in the market and choose a fixed or floating rate according to the company’s advice.

Finding a list of mortgage companies that have the best rates and services based on the customer rating is essential. It is up to you to go through all laws related to mortgage, best mortgage deal, best interest rates and so on. This will prevent you from getting entrapped with an inexperienced and incompetent company. Mortgage companies do have their own attorneys to deal with all legal issues ensuing from the mortgaged property.

Forbes List of America’s Top Mortgage Companies Include: Citigroup, Bank of America, Wells Fargo, Wachovia, BB&T, Golden West Financial, Marshall and Ilsley, M&T, AmSouth Bancorp, Popular, Synovus Financial, Zions Bancorp, Compass Bancshares and Commerce Bancorp.