At MintLife we strive to make complex financial topics easy-to-understand. Most homeowners are already familiar with the concept of a mortgage. A Reverse Mortgage lets you borrow money against the value of your home without your needing to pay it back until either one of two things happen; either you die or you sell the home. With recent government regulations in place, the Reverse Mortgage is a financial instrument set to explode with the wave of retiring baby boomers. These mortgages not only affect the borrower, but their heirs as well, so it’s important to understand the ins and outs of process and product. The Reverse Mortgage can be a lifesaver for some, but is not for everyone. This factsheet will show you how it works.
Provided by Reverse Mortgage Guide
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11 Comments so far
leave a commentCan you produce something like this for mortgage refinancing? Maybe also include the current federal programs?
You have to have delinquent federal debt to qualify? Are you sure the “Are you delinquent on any federal debt?” decision box isn’t mixed up?
delinquent on federal debt? i think you got your yes and no mixed up.
Your chart is wrong. Where it says “Are you delinquent on any federal debt?” the “Yes” and “No” should be reversed.
@Rick, Joe, ADML
Good catch. The graphic has been fixed and updated.
I came here looking for mints. I am not impressed.
I second John’s request. Great idea.
Before you refinance both into a single mortgage, make sure that any savings in payments will cover the costs of refinancing. Sorry, no one refinances a mortgage for free. Also, make sure that the combined interest costs of your first two mortgage payments are definitely higher than the interest cost on the proposed refinancing BEFORE you sign or go through the program. There are tons of online calculators that can help you with this, such as bankrate. com.
Since rates are still historically low, you may still be able to refinance at a good rate. However, they have been increasing lately and all factors in your credit/payment history that were examined in your initial loans will come into play on the refinance, too. If all you are looking for is a “lower” monthly payment because you are planning on selling the house soon or moving, then just make sure that in the current market, that you can sell the house to cover back your finance costs.
If all you are REALLY concerned about is paying ONE payment, then you could always just change your due dates to the same date, and have the payment drafted automatically at one time from your account. Very easy to do.
mortgage guide
Everyone should understand, a reverse mortgage is still a loan. The worst thing that can happen is, you live longer than you think you will. You lose your house because you can’t afford to pay the mortgage when it becomes due.
Not to be picky picky picky, but under the STOP section, “discus” really should be spelled “discuss” =)
Reverse Mortgage is really a nice way for the senior citizens. It could help them in making financial Strong.
Thanks !!