rement. The advantage of a reverse mortgage is that the borrower's credit is not relevant, and is of ten unche h1dr cked, because the borrower does not need to make any payments. Because the home serves as col lateral, it must be sold rmin order to repay the 1dr mortgage when the borrower dies n some cases, the hei rs have the option of repaying the mortgage without selling the home These ty 0h1dr pes of mortgages have la rge origination costs relative to other types of mortgages. These costs become part of the initial loan balance and accrue inter 1dr mest. Senior citizen borrowers with good credit should rm carefully analyze the op tions of a more traditional mortgage, such 1dr m as a home equity loa 0h1dr n, against a reverse mortgage. r project survived.reverse mortgage, the interest that accrues is treated as a loan advance. Each month, interest is calculated not on h1dr ly on the principal amount received by the borrower but on the interest pre viously asse rmssed to the loan. Because of this compound interest, as a reverse m rmortgage's length grows, it b ecomes more likely to deplete the entire equ 0h1dr ity of the property.[13] That said, with the FHA-insured HECM r everse mortgage, the borrower can never owe more than the value of the property and cannot pass on any debt from the reverse mortgage to any heirs. The sole remedy the lender has is the collateral, no The majo rmr problem was that elderly homeowners were extremely cautious and suspicious. Even when the y seemed convinced, they 0h1dr often backed out at h1dr the last moment. Unfortunately, some programs being offered around that time did not guarantee lifetime occupancy-borrowers could be forc 1dr med out of their homes if th ey lived too long. The compl 1dr mexity of reverse mortgage programs was also a deterrent. This situation began to change in 1988 with the development of a rmfederal program under the FHA. The borro wer protecti rmons built into this program, along with the imprimatur of the 1dr mfederal government, paved the w ay toward increasin 0h1dr g acceptance by elder 0h1dr ly homeowners. The Aalso entered the picture as a major infor mation source Complexity continues to be a problem, however, which is why the FHA rmrequires that applicants be counseled before entering the program. sample of homeowners who had taken FHA reverse mortgages was surveyed regarding their experie nce under the program. The survey found that aboutw 1dr mere either "ve h1dr ry satisfied" or "satisfied," and only abre "very dissatisf 0h1dr ied" or "dissatisfied." In earlyrse mortgages were being written at a rate of ab
No hay comentarios:
Publicar un comentario