reverse mtge - marriage

terrymartinphd · Joined: 24 Mar 2006 Posts: 3 0.13 Dollars($)

My home is valued at approx 500,000 I owe 200,000. I am 76 in good health, want to do a RM. I have a long time friend whom I may marry - if I do marry how does that affect the loan instrument in the reverse mortgae? Thanks..T

Guest 0.10 Dollars($)

Hi, Terry

How does that matter if you marry you friend or not. It will all depend on your financial background and your credit score. All you need to do is shop around to compare your options and the offered terms.

Bill · Posted: Fri Mar 24, 2006 9:38 am Post subject: Reverse Mortgage

Hi Terry,

Reverse Mortgages are Great financial tools for seniors!

I have to respectfully disagree with Mac regarding the comments on financial background and credit. Reverse Mortgages do not require any certain credit score, any proof of income and have no health qualifications.

Major reasons seniors should consider a Reverse Mortgage include:

* Never Make Another Mortgage Payment (instead You get paid)
* "Tax Free" Income via Monthly Payments, or a Lump Sum Payment, or a Line of Credit (or any combination of the three)
* You Still Own & Live in Your Home
* No Restrictions on Use of the Money
* No Income, No Medical and No Credit Qualifications
* All Remaining Equity is Yours (or your heirs) To Keep
* No Debt will be Passed onto Your Heirs or Family Members
* Possible Greater Net Worth after repayment

As far as your question regarding marriage ... if you obtain the Reverse Mortgage prior to marriage the loan is simply based on your age and the equity you have in the home. If you apply for a Reverse Mortgage after marriage, both spouses must be at least 62 years old on the day of application. Other than the minimum age requirements, the marriage should have no affect on the loan instrument. Hope you have found this information to be useful.

Best of Luck!

Samantha · Posted: Fri Mar 24, 2006 10:04 am Post subject:

Hi Terry,

Welcome to MortgageFit Forums.

I am very happy to hear about you getting married to your long time friend. I congratulate you on behalf of this community.

Getting a reverse mortgage won't be affected by marriage. Even both spouses can qualify for a reverse mortgage if both are above 62.

You must have a home and should be debt free to get reverse mortgage. Even if you are not debt free you can qualify and can utilize the first loan advance to repay your debts if you have any. You can never be denied a loan because of bad credit.

The amount that you can borrow depends on a variety of factors -

Your age.
Your home's value.
The level of home prices in your locality.
If any outstanding loan is there, then the amount of that loan.
Current level of interest rates.

In general the older you are, the lower are your interest rates and with higher home's value, you can borrow more.

Don't get worried. Lead a happy and prosperous peaceful life.

You may refer this section on reverse mortgage for more details. Feel free to ask if you have more queries.

For MortgageFit,
Samantha

terrymartinphd · Joined: 24 Mar 2006 Posts: 3 0.13 Dollars($)

Thanks for all the quick replies and congratulations. Two more Q's

1. My fear was if I married and passed away, how would it affect my wife?

2. If I wait until I am 80 what percentage am I able to secure for the RM?

3. Is the insurance available to all borrowers? What does it cover?

Thanks for all this information, this is a very informative place...T

adonis · Posted: Sat Mar 25, 2006 12:10 am Post subject: RE

Hi, Terry

Let me answer your query one by one:

terrymartinphd · Joined: 24 Mar 2006 Posts: 3 0.13 Dollars($)

I wondered if my being 76 and my wife being 60 would cause an age challenge ( other than my own, LOL) in obtaining the RM? i.e, would the percentage of the RM be lowered because of her age if we waited until she is 62 and she did become a borrower? I feel selfish taking all this informational help, but as we travel this information highway perhaps I will have a few answers to share...thanks again to all... T

adonis · Posted: Sat Mar 25, 2006 8:55 pm Post subject: RE

Hi, Terry

I think you can wait till your wife turns 62.

The amount of the loan depends upon the age of the individual, the appraised value of the home, the interest rate and the amount of repairs needed to bring the home up to FHA standards. Again for knowing the exact percentage in change in rates and all you need to consult a good reverse mortgage lender. They can only give you the exact figures.

ckalvesmaki · Posted: Sun Mar 26, 2006 9:38 am Post subject:

Hi Terry,

There may be some other options available to you other than a reverse mortgage. The first and most important thing to understand is that reverse mortgage are front loaded with costs becasue of the MIP required on FHA loans the second is that depending on your location you may be exceeding the guidelines for a reverse mortgage loan amount in which case you will be using a non FHA product which is more money up front........as much as 20k......If you decide you to move forward and you want you new wife on the loan you will need to be married for a year prior to starting the process. In the interem there are loan program i.e IO that you can take cash out on no have an increasing balance and invest in safe investments to offset the mortgage payment. A good broker can review ALL of your options with you including the reverse mortgage option and help you come up with a game plan. To give you an idea as to cash on the reverse mortgage we would need to know what state you live in and then some quick number with you and with your new wife both included in the scenario......by the way there isn't any credit qualification on a reverse mortgage.

Bill · Posted: Mon Mar 27, 2006 1:36 pm Post subject:

Hi Terry,

I will attempt to address all your questions as best as possible.

If your wife is not on the original Reverse Mortgage as a borrower and you were to pass away ... she would have to pay-off the reverse mortgage by obtaining a traditional mortgage loan product -or- if she is over the age of 62 at the time of your death she could obtain her own reverse mortgage loan financing.

As far as how much can you borrow at age 80, there is no way to effectively calculate this amount. A number of factors go into deciding the loan amount: age of borrower, value of property, FHA lending limits and projected market increases. Unfortunately, there are too many variables to predict what this amount will be 4 years from now.

Some Reverse Mortgage Age Background Information: The age of the youngest person on the loan is used to calculate the amount available. Waiting until you marry and your wife turns 62 years of age may not be in your best interest.

Regarding your question on insurance, I am not sure what you are referencing. The FHA Home Equity Conversion Mortgage (HECM) does have mortgage insurance added to the upfront and monthly costs. This is an insurance that covers the lenders risk upon payoff of the reverse mortgage in case the value does not meet the loan amount and interest costs.

Reverse Mortgage Points To Consider: A reverse mortgage is an excellent estate planning tool. A reverse mortgage reduces the total estate value subject to any applicable estate taxes. My advice would be to meet with your insurance agent and discuss the types of life insurance that you could purchase that would pay off the reverse mortgage in the event of your death. If you purchase life insurance using proceeds from the reverse mortgage you use tax free dollars since your loan proceeds are tax free income.

Hope this answers some of your questions.

Best of Luck!

ckalvesmaki · Posted: Mon Mar 27, 2006 2:00 pm Post subject:

Bill,

Welcome to the forum but direct solicitation is not allowed here. You will be, if haven't been asked allready, asked to remove your link and phone number. The purpose of this board is too provide information and if an individual wants to they can contact you off board.

Samantha · Posted: Mon Mar 27, 2006 2:17 pm Post subject:

Hi All,

I agree with Cedric.

No one should attempt for direct solicitation in this forum. This is a platform for general discussion and help people with their mortgage and real estate related problems.

We all are proud to be a part of this community with so many expert members including Bill and Cedric. This community belongs to all of us and we should try to keep it clean and fair.

Perhaps, the site administration will have a look into the matter.

God bless you all.

For MortgageFit,
Samantha

Bill · Posted: Mon Mar 27, 2006 2:44 pm Post subject:

Cederic & Samantha,

I respect what you are saying ... however, my only intention was to get Terry the correct answers he is seeking.

After discussing this entire "reverse mtge - marriage" topic with my own in-house Reverse Mortgage Specialist it was felt that some of the forum postings were not serving the needs of this questioner adequately and our Reverse Mortgage Specialist offered her own time & resources to assist Terry in making an informed decision.

PS: Our Company only does business in the State of Illinois. We are not a direct competitor of 1st Metropolitan Mortgage and do not directly lend to a majority of the persons seeking advice within MortgageFit.com forums assuming visitors are coming from all 50 states ... making the idea of direct solicitation somewhat pointless.

That said, I will attempt to not ‘offend’ others in the future ... while still trying to provide as much accurate information to the questioners as possible within the restrictions of the forums.

Samantha · Posted: Mon Mar 27, 2006 3:23 pm Post subject:

Hi Bill,

I know that you are a knowledgeable person and helping this forum and all of us with your guidance.

I have full respect for you and I do like your attitude. But I shall request you to remove your phone no. from your signature as that is against the forum rules and may draw dissatisfactions to other members.

God bless you.

Thanks,
Samantha

Bill · Posted: Mon Mar 27, 2006 3:46 pm Post subject:

Samantha,

I too have respect and do appreciate what the administrators of MortgageFit offer to consumers.

I was not aware that my signature was unacceptable and have attempted to remove the phone number without success. I get an error message when attempting to update my profile. I will try again to remove it tomorrow -or- request that the site administrator do this for me.

On the topic of "direct solicitation" and keeping the forums "fair"; I most certainly hope that for any of us mortgage professionals that do offer information toward the benefit the consumers utilizing MortgageFit.com be allowed to promote our respective services in a prominent way being as this is what we do for a living and we all need to benefit in some way from the time spent here.