Is there a reverse mortgage available for people less than 62 years old?

I am a US homeowner. Instead of refinancing, I wanted to explore the possibility of a reverse mortgage. All I have seen so far is that this is only good for homeowners aged 62 or more. Is there a company that provides reverse mortgages for those younger than 62?

Responses:

YES A reverse mortgage is a special type of loan used by older Americans to convert the equity in their homes into cash. The money from a reverse mortgage can provide seniors with the financial security they need to fully enjoy their retirement years. Many of the same costs that someone pays to obtain a home purchase loan, or to refinance their existing mortgage, apply to reverse mortgages too. You can expect to be charged an origination fee, up - front mortgage insurance premium for the FHA Home Equity Conversion Mortgage or HECM, an appraisal fee, and certain other standard closing costs. In most cases, these fees and costs are capped and may be financed as part of the reverse mortgage. Below is a more in - depth explanation of each type of fee. Origination Fee The origination fee covers a lender's operating expensesâ��including office overhead, marketing costs, etc. â��for making the reverse mortgage. Under the HECM program, which accounts for 90 percent of all reverse mortgages made in the U. S. , the origination fee is equal to the greater of USD 2, 000 or 2 percent of the maximum claim amount i. e. , county FHA loan limit. Currently, the FHA loan limit varies from a low of USD 200, 160 for rural areas to a high of USD 362, 790 for high - cost metropolitan areas. Therefore, the 2 percent origination fee generally ranges between USD 4, 003 2 percent of USD 200, 160 and USD 7, 256 2 percent of USD 362, 790. Home Keeper borrowers are charged an origination fee that may not exceed 2 percent of the value of the home. With either product, the entire amount of the origination fee may be financed as part of the mortgage. Mortgage Insurance Premium Under the HECM program, borrowers are charged a mortgage insurance premium MIP, equal to 2 percent of the maximum claim amount, or home value, whichever is less, plus an annual premium thereafter equal to 0. 5 percent of the loan balance. The MIP guarantees that if the company managing your account â�" commonly called the loan â��servicerâ�� â�" goes out of business, the government will step in and make sure you have continued access to your loan funds. Furthermore, the MIP guarantees that you will never owe more than the value of your home when the HECM must be repaid. Appraisal Fee An appraiser is responsible for igning a current market value to your home. Appraisal fees generally range between USD 300 - USD 400. In addition to placing a value on the home, an appraiser must also make sure there are no major structural defects, such as a bad foundation, leaky roof, or termite damage. Federal regulations mandate that your home be structurally sound, and comply with all home safety codes, in order for the reverse mortgage to be made. If the appraiser uncovers property defects, you must hire a contractor to complete the repairs. Once the repairs are completed, the same appraiser is paid for a second visit to make sure the repairs have been completed. The cost of the repairs may be financed in the loan and completed after the reverse mortgage is made. Appraisers generally charge USD 50 - USD 75 dollars for the follow - up examination. Closing Costs Other closing costs that are commonly charged to a reverse mortgage borrower, include: Credit report fee. Verifies any federal tax liens, or other judgments, handed down against the borrower. Cost: Generally under USD 20 Flood certification fee. Determines whether the property is located on a federally designated flood plane. Cost: Generally under USD 20 Escrow, Settlement or Closing fee. Generally includes a le search and various other required closing services. Cost: USD 150 - USD 450 Document preparation fee. Fee charged to prepare the final closing documents, including the mortgage note and other recordable items. Cost: USD 75 - USD 150 Recording fee. Fee charged to record the mortgage lien with the County Recorder's Office. Cost: USD 50 - USD 100 Courier fee. Covers the cost of any overnight mailing of documents between the lender and the le company or loan investor. Cost: Generally under USD 50 le insurance. Insurance that protects the lender lender's policy or the buyer owner's policy against any loss arising from disputes over ownership of a property. Varies by size of the loan, though in general, the larger the loan amount, the higher the cost of the le insurance. Pest Inspection. Determines whether the home is infested with any wood - destroying organisms, such as termites. Cost: Generally under USD 100 Survey. Determines the official boundaries of the property. it is typically ordered to make sure that any adjoining property has not inadvertently encroached on the reverse mortgage borrower's property. Cost: Generally under USD 250 Service Fee Set - Aside The service fee set - aside is an amount of money deducted from the available loan proceeds at closing to cover the projected costs of servicing your account. Federal regulations allow the loan servicer which may or may not be the same company as the originating lender to charge a monthly fee that ranges between USD 30 - USD 35. The amount of money set - aside is largely determined by the borrower's age and life expectancy. Generally, the set - aside can amount to several thousand dollars. Note: The servicing set aside is just a calculation and not a charge. The only amount added to your loan balance is the monthly servicing fee, which ranges from USD 30 - USD 35. If you are looking for a Lender for reverse mortgage you can c on the link below reversemortgage.org / Default. aspx?tabid=255
yes, if you are over 26 years old
Why not do a cash out refi and put the money in a money market or something similar. You pay yourself that way by setting it up with a financial planner. I have had several clients work loans this way with the help of a good financial planner. E - mail if you have questions
Sorry, these loans are only set up for people over 62. Now if a spouse is over 62 and one is not you CAN still do it but the younger spouse must be taken off of le
Nope. By definition, reverse mortgages are only available to those 62 and up. Sorry. Why would you want a reverse mortgage anyway if you are not on a fixed income? You have to pay the whole thing back when you sell the house!
reverse mortgages are not that good. it is negative ammortization, meaning you LOSE equity
You are actually safer to sell to someone who only wants it as investment property such as a rental and can wait on posession or allow you to be their tenant. This is better than reverse mortgage since you can be in default very easily on a reverse. It would be a terrible thing to put out an elderly couple who are trying to secure their end of means and that was the initial purpose behind the reverse mortgage but as always, one bad apple spoils the bunch
Have a look here
Nope. 62 is the required age. lendermark.com / reverse_mortgage.htm
People in foreclosure can also get one. other than that, 62 or higher!
I think you will find that "reverse morgtages" apply to homes, paid in full. It means that one can draw income from a bank or other source, based on the projected value at a given point in time, or adjusted as the market changes. When the value is depleted, the other party owns the home. It also may be based on less that the projected value, and may have some equity left. I do not know if one can draw from the equity while a morgtage remains

Tags: mortgage, reverse, fee, home, cost

Follow this dicussion..

Knowledge Base

How can you use someones Bank card at a restuarant or store without having it in hand?

my brother just found out that someone cleaned out his bank account by using his card at different stores and the waffle house. he has his card, so how did they use it without having it? i am really upset about this. nothing gets up my skin more than someone (bank card)

Whats the best way to pay off credit card debt?

go to the bank and borrow a personl low interest loan for the total of the three. cut the. what i am doing is dumping everything into the card with (low apr)

Mortgage on primary home to buy second home, can i deduct taxes?

my friend's primary home mortgage is paid off. she want to take a mortgage on the primary home in order to buy a second / vacation home. can he deduct (home mortgage)

Knowledge Base: Mortgage

is there a time limit to take out a va loan ?is the loan out there for the vets forever ?

as long as you are eligible for the va mortgage loan you can use your en lement anytime. military personnel are eligible if they have served for 90 days or more during wartime or. my va loan was very easy, but that was 15 years ago. yes, and you can (refinance home mortgage)

How Can I get to a specific site mortgage.com, but instead of the page I want I get loan quotes

try lendingtree.com where banks compete over your loan. mortgage.com. is the home page, what did you want specifically?. there are several menu selections at the top of the page that may lead you to what you need - . here are some other helpful resources i took from the cite. (home mortgage)

How do I get the lowest mortgage rate?

i am trying to get a mortgage in florida. i have a credit score of over 800. is there a seach engine where i can find what bank has the lowest rate?. bankrate.com. using search engines open you up to a lot of marketing and sales calls. those companies "sell" (bad credit mortgage)

If you make an extra payment on your mortgage annually what does that do to your 30yr fixed rate

the interest rate stays the same. but since you are paying down the principle faster. the amount of interest that you pay will be less. the rate stays the same. but you pay much less in total interest. just do the amortization to see how it works out for your (mortgage lenders)

How would McCain fare against Obama in the fall?

the issues confronting most americans today, " the economy, jobs, housing mortgage mess. but, with mccain it will be the second time around and old news and the obama team (college loans)

Knowledge Base: Reverse Mortgage

What is a reverse mortgage and why does it sound like a rip off?

because it is not a loan that will ever be paid off, and the equity will soon be used up in these expensive days. i have 100, 000 or so equity in my house, and i'd rather sell it. i am quite convinced that it is a ripoff by people (reverse mortgage)

Reverse mortgage?

i have found there is a ton of misunderstanding around reverse mortgages. 1. what do you think a reverse mortgage is? 2. how do you think it works? 3. why do you think it is good / bad? you must answer all three to be considered for best answer. reverse (reverse mortgage)

What are the pros and cons of an elderly couple doing a reverse mortgage?

we are in our mid sixties. would it be advantageous to do a reverse mortgage?. if you know for sure you will not be moving, if you want to spend the rest of your life in this home, if you are not planning to leave this house to anybody - (reverse mortgage)

Is there a reverse mortgage available for people less than 62 years old?

i am a us homeowner. instead of refinancing, i wanted to explore the possibility of a reverse mortgage. all i have seen so far is that this is only good for homeowners aged 62 or more. is there a company that provides reverse mortgages for those younger than 62?. have (reverse mortgage)

what is a reverse mortgage and how do people benefit from them?

what exactly is a reverse mortgage? why do not people have to pay it back?. a reverse mortgage is a loan that allows people ages 62 and up to get the money they need for any expenses they may have. unlike traditional mortgages, there are no monthly payments on a (reverse mortgage)

CAn someone explain a reverse mortgage purchase when buying a home?

man, 69yrs old getting divorced, need to use a reverse mortgage to purchase, i need it explained to me, how it works. a reverse mortgage is not a purchase at all it is a refinance of his current home. there must be a lot of equity in the home in (reverse mortgage)

What is a reverse mortgage?

basically, a company takes the equity you have in your home and begins to make payments to you on a monthly bases. there are many pros and cons to this although i am not sure of. hello, . a reverse mortgage is a loan that enables senior homeowners, age 62 (reverse mortgage)