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| It is our pledge at National Eldercare Alliance to take care of our members as if they were our own family. If we feel a service or facility wouldn't be worthy for our own parents or family, then we won't recommend them to you either. |
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Welcome Shriners |
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ARTICLE : What is Reverse Mortgages?
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 A reverse mortgage is a loan against your home that you don’t have to pay back for as long as you live there. With a reverse mortgage you can turn the equity in your home into cash without having to move or repay the loan each month. The money you receive can be paid to you either in a lump sum, a monthly amount, a credit line similar to a credit card or a combination of these choices. Since you don’t have to make monthly payments on the loan qualifying of a loan is much simpler as long as you have sufficient equity in your home. In fact, you could have no income and still qualify for a reverse mortgage.
To qualify for a reverse mortgage you have to be at lease 62 years of age and live in your home. The proceeds of a reverse mortgage (without other features, like an annuity) are generally tax-free, and many reverse mortgages have no income restrictions.
 There are three basic types of reverse mortgages: single-purpose reverse mortgages, which are offered by some state and local government agencies and non-profit organizations; federally-insured reverse mortgages, which are known as Home Equity Conversion (HECMs), and are backed by the U.S. Department of Housing and Urban Development (HUD); and proprietary reverse mortgages which are private loans that are backed by the companies that develop them.
Single-purpose reverse mortgages generally have very low costs. But they are not available everywhere, and they can be used for one purpose specified by the government or non-profit lender, for example to pay for home repairs, improvements, or property taxes. In most cases you can qualify for these loans only if your income is low or moderate.
HECMs and proprietary reverse mortgages tend to be more costly than other home loans. The up-front cost can be high, so they are generally most expensive if you stay in the home for just a short time. They are widely available, have no income or medical requirements, and can be used for any purpose.
 Before applying for a HECM, you must meet with a counselor from an independent government approved agency. The counselors will explain the loans costs, financial implications, and alternatives.
The amount of money you can borrow with a HEMC or proprietary reverse mortgage depends on several factors, including your age, the type of reverse mortgage, the appraised value of your home, current interest rates and where you live. In general, the older you are, the more valuable your home, and the less you own on it, the more money you can get.
Generally reverse mortgages don’t affect Social Security or Medicare benefits. In the HEMC program, a borrower can live in a nursing home or other medical facility for up to 12 months before the loan becomes due and payable.
Lenders generally charge origination fees and other closing costs for a reverse mortgage. They may also charge serving fees during the time of the mortgage.
Reverse mortgages are becoming popular in America. Many seniors are using reverse mortgages to supplement social security, meet unexpected medical expenses such as long term care, and make home improvements.
A reverse mortgage can be an important alterative to paying for either a long-term care insurance policy, or long –term care directly. However, be a cautious buyer. Beware of scam artists that charge thousands of dollars for information that s free.
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