4 basic questions answered about reverse mortgages

A reverse mortgage is a loan that allows individuals older than 62 to improve their financial well-being. They can convert part of their home equity into lump sum cash, fixed monthly payments, or line of credit, according to their preference. The money can be used to pay for medical bills, in emergencies, or to pay off a mortgage. Here’s what you should know about reverse mortgages in case you’re looking for one.

How much can you borrow?
For reverse mortgages, the loan amount can’t exceed the value of the property against which it is borrowed. Federal regulations require lenders to ensure that the loan amount doesn’t exceed the value of the house by structuring the transactions accordingly. Additionally, these regulations state that the owner/borrower is not liable to pay off the balance amount in case it exceeds the property value.

How are reverse mortgages paid for?
A reverse mortgage is payable when the borrower sells the house, relocates permanently, or dies. Unlike forward mortgages, reverse mortgages don’t need the borrower to make any monthly payments. They are only liable to pay interest on the money received, which is rolled back into the loan balance. While the owner gets to keep the title to the home, their home equity reduces over the loan tenure.

Who can take a reverse mortgage?
This type of loan is ideal for seniors and retirees whose net worth comes mostly from the value of their home. Seniors who don’t qualify for a home equity loan or can’t refinance due to limited cash flow or poor credit can opt for reverse mortgages. Home Equity Conversion Mortgage (HECM) for purchase is a reverse mortgage that allows seniors to buy another property. That said, it is complex, and you should study the risk factors before getting one.

What are the risks associated with reverse mortgages?
Reverse mortgage scams are not unheard of. Unreputable vendors could offer to help seniors secure reverse mortgages by undertaking house repairs. They don’t provide quality results and get away with the homeowner’s money instead. For spouses living together in a home with only one spouse named as a borrower on a reverse mortgage, the other spouse can lose the home if the borrowing spouse dies first. Besides, reverse mortgage lenders charge fees and closing costs and may also charge mortgage insurance premiums for federally-insured HECMs.

YOU MAY ALSO LIKE

  • Four most popular new convertible cars to look out for
    A convertible car also known as cabriolet is a style in which an automobile with an enclosed roof can be converted into open-air mode. The models vary in degree of design. Here are some of the popular new convertible cars to look out for towards the end of 2017 and 2018.
    • Chevrolet Corvette Z06 With a starting price of $80,000, it is one of the most amazing new convertible cars which popular across the country. Used either as a coupe or convertible, the new Chevrolet corvette has a drivetrain of supercharged 6.2 liters V-8 engine with a 650 horse power and a 650 lb-ft worth of torque. It is a seven speed manual for in hand shifting and an 8 speed automatic transmission. It clocks 0-60mph in 3 seconds.
    • Ferrari 448GTB The Italian marvel, Ferrari comes with a twin-turbo 3.9 liter V-8 engine that has situated in the boot. The engine revs up to 8000 rpm providing a horsepower of 660HP. Its ferocious acceleration makes the car go from 0 to 60 in flat 3 seconds. The new convertible car comes with a dual-clutch seven transmission. The efficient handling of the car is supported by the new compliant, revised and adaptive suspensions. For enthusiasts that are a fan of the car's sonorous wail, they can hear it with the help retractable hardtop that lowers at speeds greater than 25mph.
    • Lamborghini Huracan Another one of the Italian automobile behemoths, Lamborghini is an archrival to Ferrari. The entry level sportscar, Lamborghini Huracan has an elegant angular design which makes it look quite intimidating. It has a combat aircraft-like cockpit which makes the interiors look intense. It packs a 5.2 liter V-10 engine that has a seven-speed dual clutch automatic transmission. The rear wheel drive churns out an amazing 571 horsepower while the all-wheel-drive produces 602 HP. The speed monster is also available in convertible version called as spyder. Huracan clocks from 0 to 60mph in flat 2.5 seconds.
    • Mazda MX-5 Miata Winner of the 10 best new convertible cars of 2017, Mazda is known across the country for pure driving bliss. The drivetrain of the car contains of 2 liter four cylinder engine that helps in producing 155 horsepower. The six speed transmission of Mazda MX5 is available in manual in manual as well as automatic. The use of aluminum keeps the weight of the car down. The RF model of Mazda MX5 comes with a foldable targa top, which is more expensive than cloth topped Mazda. Its top speed is 133 mph and clocks from 0 to 60 mph in 6 seconds. The mileage of this new convertible car is 26/33mpg.
  • 4 treatments for bulging discs
    A bulging disc is a disc herniation which happens when a damaged disc swells up within the crevices or space between two discs in the spinal cord. The disc leaves its normal position and shifts out of place, which leads to a leakage of the inner nucleus, thus causing a herniation. To carry out a bulging disc treatment, there are some methods that one can look for. Here are some of them. Taking the right medication For a bulging disc treatment, medication is essential, prescribed by a doctor. The medicines may include non-steroid anti-inflammatory drugs also known as NSAIDs. Also, the doctor may prescribe pain killers and muscle relaxants for standard cases, while steroids and injections may also be administered for chronic cases. A word about tuning the spine Carried out by a chiropractor, this kind of a bulging disc treatment will render pain relief even as it protects the spine from further damage. Opt for physiotherapy It is important to get some or the other form of exercise coupled with massage so that the area is soothed and stretched at the same time, for better pain relief. Physiotherapy should ideally be conducted by a physiotherapist who will guide you through the motions so that you practice the same correctly. If you get the posture wrong, then you may end up with further injury and pain. Sleep for at least 6 to 7 hours For a bulging disc treatment, you will need to sleep with a pillow under your knees for better support and elevation. Also, you can try sleeping on a reeling chair or bed, as this will keep the pressure off the back. You will need to take conservative measures to bring in tweaks within your daily routine to manage and treat a bulging disc problem. Keep these nuggets of information handy while looking for bulging disc treatments.
  • Top 5 penny stocks to check out
    Shares that trade for less than $5 per unit (or even under 1$ in some markets) are generally referred to as penny stocks. These stocks are a popular trading option among investors. They are low-value stocks, typically shares of small companies. Penny stocks have a very low market capitalization and are usually listed on a smaller exchange. Here are insights on the top five penny stocks in the country: Sesen Bio Sesen Bio is a clinical biopharmaceutical healthcare firm that specializes in targeted fusion protein therapeutics for cancer treatment. This late-stage company aims to improve the life of cancer patients through its innovative approaches. The company’s top product is Vicineum—a targeted fusion protein designed as a bladder cancer treatment to overcome the disease. With its fusion protein treatment options, the company aims to find solutions to select and kill cancer cells while minimizing toxicity to healthy cells. Sesen Bio has a market capitalization of about $145 million. Its share prices usually trade for less than a dollar. Wrap Technolgies, Inc. Wrap Technologies is a public safety technology and service company and is a subsidiary of Megawest Energy Montana Corp. The company serves customers across various countries. Its robust products, including the handheld remote restraint system and the law enforcement training system, can help guards, police officers, and security officers in defending themselves and dealing with threats or individuals perceived to be dangerous without causing injury. The share prices of Wrap Technologies usually range from $1 to $5. Their market cap is expected to be around $78 million.  Pitney Bowes Inc. This is a technology company that provides products and services such as mailing equipment, postage meters, and mailing services. They prioritize client satisfaction and offer a good return for investors. Small businesses, enterprises, retailers, and government clients can rely on Pitney Bowes for easy dispatch of parcels. This global logistics firm also pays a robust dividend to shareholders. The company has a market cap of about $671 million, and its shares are currently trading under $5/unit.  AgroFresh Solutions Inc. AgroFresh is dedicated to developing solutions to support farmers, retailers, and exporters in developing and supplying quality products. The company offers various solutions such as fungicides, ethylene control solutions, disinfectants, and seeding protections to prevent food wastage and losses. The products mainly help preserve fresh produce after harvest and when it is stored for a long time. AgroFresh market cap is around $97 million. You can purchase a share of this company at anywhere between $1 and $5.  Bolt Biotherapeutics Bolt biotherapeutics is a biotechnology firm that develops immuno-oncology therapeutics. The immune-stimulating anti-body conjugates developed by Bolt are found to eliminate tumors associated with cancer. Its new category of targeted immunotherapies aims at the activation of an adaptive immune system in the tumor microenvironment. It is an approach to building a pipeline of robust immune-stimulating therapeutics. Its market cap is estimated at $93.4 million. Bolt’s share price usually ranges between $2 and $3.  Penny stocks can be a great option for traders who are looking to begin investing with a small amount and take on bigger risks. Although there are various risks associated with these volatile and fluctuating stocks, the investment can also yield high returns in the long run. So with proper research and understanding, investors can consider picking the right stocks that work for them.
  • Delicious slow cooker recipes for every kitchen!
    Cooking healthy and delicious food should not cost you any extra time in the kitchen. But slow cooker dishes are flavorsome, healthy and do take a lot of time. There isn't anything that can't be cooked in a slow cooker. Right from dips, entrees to sauces and desserts, slow cooker recipes are all-encompassing. Read on to get some delightful and best slow cooker recipes that are a must in every kitchen and are an absolute delight. Buffalo chicken meatballs Buffalo wings are a classic appetizer but when you don't have limited time in your hand, why not turn this classic dish into a slow cooker recipe for meatballs! You can also make these meatballs in the oven by baking them a little and then just before serving, quickly pop these into the slow cooker. This will help to soak in the flavors well. Sprinkle some blue cheese for the extra touch of deliciousness at the time of serving. If you don't want to go with the traditional way of cooking the buffalo chicken, then you can give this a sure-shot try as a party appetizer or even a light dinner. Mashed potato with a twist of garlic One of the quickest and easy to make dishes, mashed potato can be served as a side dish with a steamy steak or can be eaten individually too. This is a simple and one of the best slow cooker recipes because all you have to do is put all the ingredients in the crock pot and you are ready to go. Put in a lot of cheese and garlic cloves with fresh herbs. Blend all of these together till you get the right texture of the mashed potato. Dips of every flavor is a great add on Creamy dips are always a show stopper whether for a game day or a house party. You can try preparing spinach and artichoke dips that are a classic for every dish or make corn and cheese dip with some extra spiciness. Add in cream cheese, jalapenos, and fresh herbs to get the right balance of flavors. These classic dips can either be relished with freshly fried chips or eaten with a spoon. If you're looking for some of the best slow cooker recipes, then try these classic ones that are easy to prepare and requires less cooking time.
  • Want an electric ranger here are your options

    There are a number of reasons why you can opt for a Polaris electric ranger vehicle:

    The Polaris ranger vehicles have a strong 30HP motor featuring a 48V AC motor which is clean and quiet but at the same time more efficient and extends the range. An all-wheel drive option that makes it a safe and stable ride with more traction control, good leading and towing payload capacity. The base models not only look good on the outside, but also feature an array of comforts on the inside with ideal seat height, extra wide feet clearance and spilt seating arrangement.

    The ranger vehicle also features smooth suspension to handle the toughest terrains with 9inch suspension holds with good ground clearance and power steering with a turning radius of full 10 inches. All combined, this makes the Electric one sweet nimble ride!

    The popular and featured Polaris electric ranger brands include:

    Polaris has divided their exclusive range of electric vehicles according to categories like Polaris ACE, general, Ranger, RZR, scrambler, sportsman, youth amongst which the following are a few of the electric ones. The normal horse power range of these vehicles ranges from 19HP to over 100Hp depending on the type of use and it's on and off-road capabilities. The base models start at $5999 and go upwards of $12000.

    • Ranger 500 Sage green which is priced at a modest $8999. This particular electric ranger also comes in a solar red model.
    • Ranger 570 Sage green priced at $9999 with the single-color variant for this particular model.
    • Ranger 570 full size solar red, full size sage green in the two-color variants $10229. Normally the variants will be divided according to the segments, seating capacity, power and of course the price.
    • Ranger 570 Polaris pursuit camo, Ranger crew 570-4 sage green, Ranger EV avalanche gray, Ranger crew 570-4 Polaris pursuit camo are priced at $10599, $10799, $11299, $11399 accordingly.

    Other models can be looked up on the official ranger website of Polaris, where the models can be compared side by side.

    Polaris also offers the choice of building your own Ranger vehicle which can be customized according to your specifications. This is a unique feature which will ensure that you get what you want for the best price, without having to go through the grueling task of choosing from the number of products that are available at your disposal. Visit the official website to know more about the build your own electric ranger option.

  • Top 5 lipsticks of 2021
    It doesn't matter whether you're a makeup queen or one that wears only the bare minimum, you can never leave out lipsticks. In fact, most of us always carry our favorite lipstick wherever we go. Nonetheless, if you haven't found "the one" or are looking for different shades, here are the five best lipsticks you need to check out. Charlotte Tilbury K.i.s.s.i.n.g. Lipstick This product is all you need for luminous, bold, and perfect lips. Its wax formula makes the lipstick glide on your lips while keeping them hydrated. It is infused with natural ingredients that help fight UV damage and oxidative stress, leaving your lips supple and soft. Maybelline SuperStay Matte Ink Liquid Lipstick With its unique arrow-shaped applicator, applying lipstick becomes almost effortless. It lasts for up to 16 hours and is available in over 35 amazing colors. This bold matte lipstick can be removed seamlessly using Maybelline's SuperStay Eraser lipstick remover. It is available in various online and offline stores for only $9.49. L'Oréal Paris Colour Riche Satin Lipstick This $6 lipstick is surprisingly one of the best ones out of the lot. It is affordable and comes in over 52 fabulous shades across four color families - red, berry, pink and nude. You can choose any shade of your choice; they are perfect for any occasion. It contains omega 3, vitamin E, and argan oil to help keep the lips soft and nourished. These lipsticks are available across various online stores. Bobbi Brown Crushed Shine Jelly Stick This lipstick is created by infusing essential fruit oils like apricot, sweet cherry, and papaya to give your lips a natural, plump look. Its jelly-like formula helps keep the lips hydrated and makes application smooth and easy. Moreover, it is free from parabens, animal-derived ingredients, and talc. You can pick any shade of the six exciting colors. Glossier Ultralip Glossier's Ultralip works both as a lip balm and gloss. It is made using a blend of three oils, mainly Meadowfoam, Jojoba, and Watermelon. It keeps the lips moisturized while providing a bold and beautiful lip moment. It is dermatologically tested and is 100% vegan. It costs $18 and is available in 9 different shades.