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M.SURYANARAYANA
Guest
0.10 Dollars($)
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Post subject: RML ACCOUNTING TREATMENT OF INTEEST CHARGED UNDER THE SCHEME |
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| Kindly enlighten me the accounting treatment of interest charged in a reverse mortgage loan scheme. |
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jenkin7
Joined: 04 Jun 2007
Posts: 4320
Location: Hawaii
683.42 Dollars($)
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Post subject: |
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Hello,
Have you had a talk with any lender or have you already applied for a reverse mortgage? |
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miller_st
Joined: 17 Jan 2007
Posts: 917
168.95 Dollars($)
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Post subject: |
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Most of the reverse mortgages have adjustable rates based on yields on 1-year Treasury notes. On these loans there are no monthly payments & loan is not required to be repaid until borrower moves out of the house of he dies. Interest is charged on the outstanding mortgage balance & added to the amount which borrower owes every month. It means that the total debt increase over time as mortgage funds are advanced to the borrower and interest accrues on the mortgage.
Miller |
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Williams
Guest
0.10 Dollars($)
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Post subject: gifting from reverse mortgage |
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| My parents are aged around 70's. And they are thinking of gifting cash to their children and grandchildren from their reverse mortgage funds. At their age they may have to go to a nursing home any time, so if they need medical help, how will they pay; I don't want them to be penalized for having not paid for the Medicaid money. Is gifting from a reverse mortgage handled in a different way compared to any other asset? |
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larry
Joined: 27 Jun 2007
Posts: 3328
474.61 Dollars($)
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Post subject: |
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Hi Williams,
A reverse mortgage does not affect Medicaid payments. So, if your parents go for a Medicaid, then the proceeds from the reverse mortgage can be used anytime. Here the fund that they will receive from the reverse mortgage will be considered as an asset. |
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helping_user
Joined: 31 Mar 2006
Posts: 815
Location: Hawaii
155.59 Dollars($)
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Post subject: RE: gifting funds from reverse loan |
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| The cash obtained from a reverse mortgage is not considered as income because it is a loan taken against a property. So, gifting the funds received through a reverse mortgage does not affect the social security income or any government programs for which your parents can qualify for at this age. They can use funds from social security or other benefits to pay for the Medicaid even if they gift you funds from the reverse loan. |
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Robert007
Guest
0.10 Dollars($)
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Post subject: PMI for reverse loan |
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| If I have a reverse mortgage, do I have to pay pmi in cash without adding it to the outstanding loan balance? |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 1861
Location: New Brunswick, New Jersey
353.11 Dollars($)
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Post subject: RE: PMI for reverse mortgage |
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Hi Robert,
Welcome to the forums.
Since you have taken a reverse mortgage, there's no need to apply for a private mortgage insurance. The primary purpose of this insurance policy is to get your mortgage paid off once you default and cannot pay any more. The lender gets back his invested money. And, thus you can save your home from being foreclosed or sold off to repay the loan.
However in a reverse loan, there's no such requirement. This is because you own the home and once the loan period is over, the lender can sell your home and get back his money. Or else your heirs can pay off if they want you to keep the home.
Take Care |
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smith
Guest
0.10 Dollars($)
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Post subject: |
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| My grandmother wants to me to buy her reverse mortgage of $850 by paying her 30K. I will be the one paying for her loan then. But is this possible? |
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Ryan
Guest
0.10 Dollars($)
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Post subject: |
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| Are you buying the house or the mortgage? pls explain? |
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Guest
0.10 Dollars($)
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Post subject: Rosetta |
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Hi Smith,
To transfer the reverse mortgage in your name, the lender may ask you to refinance the loan in your name and replace it with a new loan.
BTW, why does your grandmother want to transfer the reverse loan in your name? She is not required to repay the loan as long as she remain in the house. It needs to be paid only if she leaves the house or passes away.Then after her death, the lender may sell the house and recover the payments of the loan.
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant |
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tabitha
Guest
0.10 Dollars($)
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Post subject: |
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| I do not come under the age criteria for reverse mortgage. So, can I take out my name from the title so that it's my husband who qualifies for the reverse mortgage? Will that be legal? |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 1861
Location: New Brunswick, New Jersey
353.11 Dollars($)
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Post subject: RE: take name off title before reverse loan |
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Hi Tabitha,
Welcome to the forums.
It is legal to take your name off the title to your property. But you need to think of other legal aspects of such a transfer, say, if your husband passes away during the loan term or if you later decide to go for a divorce. It is better to discuss this with your attorney so that he can make you aware of any future legal complexities that you may come across.
Take Care |
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larry
Joined: 27 Jun 2007
Posts: 3328
474.61 Dollars($)
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Post subject: |
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Hi Tabitha,
If you do not fall under the age criteria for reverse mortgage, then there is no problem if you take out your name from the title to the property. You need not worry as it is absolutely legal. In that case, your husband who qualifies for the reverse mortgage age criteria, will be able to take the loan in his name. |
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Dave
Guest
0.10 Dollars($)
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Post subject: |
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| i don't know why but i've got reverse mortgage proceeds worth 50% of my home appraised value and i questioned ther lender but i couldn't make out hat they said. is it ok that i'm getting 50% of apoprasal or is this fraud? |
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