Reverse Mortgage Definition

The most basic reverse mortgage definition is that it is a financial arrangement that allows older homeowners to obtain funds against the equity in their property without actually having to sell it off. Sounds simple enough doesn't it? Simple as it may be, there are various other ways to define reverse mortgage arrangements that can muddy up the waters a bit. It is therefore important to gather as much reverse mortgage information as you can before deciding whether or not it is the right course of action for you to take. Just like any other major financial decision, it is important to find out exactly what is a reverse mortgage before committing to a plan of action that you may have trouble dealing with to its logical conclusion.

Beyond the basic reverse mortgage definition, what you have to realize is that this type of financial arrangement does not actually require you to pay any amount of money until: a) you pass away, b) you give up ownership of the home, or c) you do not occupy the property as the principal resident for 12 months or more. When any of these events happen, the reverse mortgage is considered matured, and all outstanding debts will have to be paid.

When you define reverse mortgage packages in this manner, you are essentially provided with tax-free income regularly, which may be given in installments or in a single payment. Since a reverse mortgage basically allows you an easy way to get much-needed funds for your property–or for whatever purpose for that matter–it is ideally suited to the needs of many senior citizens, most of who have had to deal with greatly reduced income either from working less or not at all. Reverse mortgage packages have therefore become quite popular in many countries all over the world including the United States, Canada, in certain parts of Asia.

Going by this reverse mortgage definition, it is obviously a lot different from traditional mortgage arrangements in which you are required to pay a monthly fee. With a reverse mortgage, you will not have to pay a single cent until the loan has matured according to the circumstances described previously.

It is actually this last aspect that causes a bit of confusion in the way some people define reverse mortgage arrangements. The money that you receive from these types of transactions should not be considered as "free" money in any sense of the word, since you actually have to pay all of it back when the time comes. According to this arrangement, your debt is actually doing constantly although the bank will not collect any payment until the termination of the loan or your family opts to sell off the property.

As you can see, there is a lot more yet to learn about this type of financial transaction that goes well beyond the standard reverse mortgage definition. Pick up as much reverse mortgage information as you can and you will be in a better position to make the proper decision when the moment of truth arrives.



Reverse Mortgage News:
Is a reverse mortgage right for you?
BIRMINGHAM, Ala. (WIAT) - Have you ever heard of a reverse mortgage? These government sponsored loans have been around since the 1980's. Over the last five years, more Alabama seniors on fixed incomes are turning to this option to pay bills and maintain their homes. You've seen the commercials.  The ones promising a life void of financial hardships simply by having a reverse mortgage, an FHA ...


MetLife exits reverse mortgage business - Chicago Tribune

Atlanta Journal Constitution (blog)

MetLife exits reverse mortgage business
Chicago Tribune
(Reuters) - MetLife Inc, the largest US life insurer and reverse mortgage lender, made a surprise shift on Thursday with the sale its reverse mortgage business as part of its exit from banking-related activities. Nationstar Mortgage LLC will buy its .
MetLife Exits Reverse Mortgages in Retreat From BankingSan Francisco Chronicle
MetLife posts 1Q loss, exiting reverse mortgagesBusinessWeek
MetLife Exiting Reverse Mortgage Business, Selling Portfolio To NationstarFox Business
Atlanta Journal Constitution (blog) -Financial Times
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MetLife exits reverse mortgage business
MetLife Inc, the largest U.S. life insurer and reverse mortgage lender, made a surprise shift on Thursday with the sale its reverse mortgage business as part of its exit from banking-related activities. ...


Another Big Name Exits Reverse-Mortgage Lending - New York Times (blog)

whathouse.co.uk

Another Big Name Exits Reverse-Mortgage Lending
New York Times (blog)
By ANN CARRNS Yet another household name has given up making reverse mortgages EUR” loans that let borrowers age 62 and older tap the equity in their houses without having to make monthly payments. The lenders get their money back once the borrowers move .
Reverse Mortgages : 3 Big Banks Exit Reverse Mortgage BusinessThe Mortgage Reports
Mortgage blog: Everything you need to know about tracker and discounted mortgageswhathouse.co.uk

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Financial Planning Publication Shows Turnaround View on Reverse Mortgage Use - Reverse Mortgage Daily

Financial Planning Publication Shows Turnaround View on Reverse Mortgage Use
Reverse Mortgage Daily
Online publication Registered Rep touted the use of reverse mortgages in retirement in a column published this week. The publication, which serves investment advisors and other financial planning professionals, states in a column by Mark Miller that .

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Reverse Mortgage Industry Has a New Advocate with Real Credibility
Industry veteran Jason Levy CEO of Senior Home Loans, announced today that their new spokes person will be none other than Wayne Rogers from the hit television show M*A*S*H.Melville, NY (PRWEB) April 25, 2012 Wayne Rogers, known for his acting role as Trapper John from the long-running TV series M.A.S.H., has signed on to a national reverse mortgage ad campaign representing Senior Home Loans, a ...


CBS Local News: Reverse Mortgages Work Well, With Caution - Reverse Mortgage Daily

CBS Local News: Reverse Mortgages Work Well, With Caution
Reverse Mortgage Daily
A local CBS news segment shows a happy reverse mortgage borrower and explains how the loan can be used to stay at home. For those who meet the 62-plus age requirement, are on a fixed income, and plan to stay in the home for a number of years, a reverse .

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MetLife posts 1Q loss, exiting reverse mortgages
MetLife Inc. said Thursday it is getting out of the reverse mortgage business as part of its exit from retail banking, which it says accounted for only a small fraction of its profits...


Does a reverse mortgage work?
Opinion divided on if seniors income source helps or hurts You may have heard that a reverse mortgage will give you a EURœlifetime incomeEUR or you will EURœnever lose your home.EUR But the jury is out on how effective of an option this is for seniors. Reverse mortgages, or Home Equity Conversion Mortgages (HECM), are available to homeowners who are at least 62-years-old. The loan taps the homes equity ...


Is a reverse mortgage right for you? - CBS42

Is a reverse mortgage right for you?
CBS42
The ones promising a life void of financial hardships simply by having a reverse mortgage, an FHA Loan for seniors 62 and older. "It's really to help senior homeowners out during a time in their life when they're on a fixed income and have other needs .
Congress and Advocates for Seniors Agree on Value of Reverse MortgagesNational Mortgage Professional Magazine
Top Reverse Mortgage Lender Title: Now Up for GrabsReverse Mortgage Daily

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MetLife Exiting Reverse Mortgage Business, Selling Portfolio To Nationstar
MetLife Exiting Reverse Mortgage Business, Selling Portfolio To Nationstar..


The Titan Agency Selected as Agency of Record for Mortgage Provider Generation Mortgage
ATLANTA, April 19, 2012 /PRNewswire/ -- The Titan Agency, an Atlanta-based Executive Marketing Agency with offices in Miami, has added Generation Mortgage Company, an industry-leading reverse mortgage ...


Age of these borrowers in reverse
'In the past, reverse mortgages were a last resort.' It used to be that taking out a reverse mortgage was a means for a person past retirement age to stay home, collect enough to get by and maybe keep their house EUR the iconic symbol of the American dream EUR in the family...


Another Big Name Exits Reverse-Mortgage Lending
MetLife, another big reverse-mortgage lender, is getting out of the business...


Are Reverse Mortgages the New Key To Long Term Care at Home? - Reverse Mortgage Daily

Are Reverse Mortgages the New Key To Long Term Care at Home?
Reverse Mortgage Daily
Reverse mortgages are beginning to catch on as a way to fund long-term care, and now, one of the primary reasons borrowers take out out this type of loanEUR”so they can stay at homeEUR”could mesh with a developing senior at-home care model: EURœCCRCs without .

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Jill on Money: Retirement, Reverse Mortgages, Education Funding - CBS News

Jill on Money: Retirement, Reverse Mortgages, Education Funding
CBS News
Julia from Michigan wanted to know more about reverse mortgages, which seems to be a hot question these days. Maybe all of those ads featuring celebrities like James Garner, Robert Wagner, Fred Thompson and Henry Winkler are stepping up their efforts!

and more »
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Don't You Dare Pay off Mortgage With IRA
Refinancing or getting a reverse mortgage can provide you cash and spare your retirement funds...


Reverse mortgages: Don't let the Fonz sell you - CBS News

CBS News

Reverse mortgages: Don't let the Fonz sell you
CBS News
For some of these near or current retirees, the allure of a reverse mortgage is calling. A reverse mortgage is a home loan that allows homeowners 62 and older to convert a portion of the equity in their homes into cash, as long as the home remains .
FHA Performance ImprovesMortgage Daily

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