reverse mortgage


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reverse mortgage

n.
A mortgage in which a homeowner, usually an elderly or retired person, borrows money in the form of annual payments which are charged against the equity of the home.
References in periodicals archive ?
22, 2015 /PRNewswire/ -- The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI), a quarterly measure that analyzes trends in the home values, home equity, and mortgage debt of homeowners 62 and older, reached an all-time high of 195.
Reverse Mortgage Funding LLC announced today that it has hired George Stewart (NMLS # 506558) as a Reverse Mortgage Loan Specialist.
THE ABA HAS ENDORSED, through its Corporation for American Banking subsidiary, Reverse Mortgage Funding LLC's reverse mortgage program including its full offering of FHA-insured Home Equity Conversion Mortgage (HECM) products.
For those who have special needs, or are caregivers for an individual with special needs, the promise of extra cash flow from a reverse mortgage may seem like a wonderful gift; however, be sure to read the fine print.
Proposition 5 would allow homeowners age 62 or older to buy a new house by paying about half of their costs out of pocket and then using funds from a reverse mortgage loan to pay the difference - all in one transaction and without having to sell their current home first.
A recent study by the MetLife Mature Market Institute found that younger seniors are now seeking a Home Equity Conversion Mortgage (HECM), otherwise known as a reverse mortgage (RM).
The HECM is a 1987 originated, US Department of Housing and Urban Development reverse mortgage programme that was designed for senior citizens.
Many stories have featured seniors who are on the brink of being forced out of their homes because they didn't understand the provisions of their reverse mortgage.
A reverse mortgage converts the equity in the members home into cash without a monthly payment obligation, according to the MEMBERS Trust Co.
Despite drops in property value over the last two years, many seniors (and baby boomers) who have reached the reverse mortgage eligibility age of 62 still have significant equity in their properties and are using it to assist with living expenses, real estate taxes, or medical costs.
The economic needs of these three generations combined could increase the demand for reverse mortgages even when seniors don't need a reverse mortgage to meet their own individual needs.
According to the Department of Housing and Urban Development, reverse mortgage volume increased by nearly 7,000 loans from 2007 to 2008.