Apply for Reverse Mortgage Loan

A reverse mortgage is a mortgage loan which enables senior homeowners age 62 and older to access their home equity without monthly repayments. It is an excellent option for people who wish to remain in their residential dwelling while getting extra cash to live comfortably inside their house. Federally-insured reverse mortgage loan has been quite popular recently due to its availability and easy application. Seniors who wish to apply for a reverse mortgage loan do not have to meet certain credit score or income requirements. Reverse mortgage loan has been one of the popular ways to access a portion of residential house equity safely for anything the homeowner wish -be it for travel wishes or home improvement project or medical expenses. Here are some reasons why reverse mortgage loan is a lucrative offer for seniors:

1. Seniors do not have to make monthly mortgage payment. They just need to live in and maintain the condition of their primary residential house, pay property taxes as usual and keep up homeowners insurance.

2. Seniors are able to access their home equity in the form of lump sum (cash up front), monthly income, a credit line or a combination of any of the previous without affecting Social Security benefits or Medicare. And the money they receive is usually tax-free.

3. There is no credit score or income requirements. The approval process is relatively quick and easy. And if seniors have had a bankruptcy, they could still apply for a reverse mortgage loan and there is no time limit after a bankruptcy has been discharged.

Get information related to reverse mortgage, its rates, costs and fees from trustworthy reverse mortgage company which is an approved lender with the Department of Housing and Urban Development (HUD) and is a member of the National Reverse Mortgage Lenders Association and has good accreditation from Better Business Bureau, among other things. By using the help of HUD-approved lender, homeowner will be able to apply for federally-insured reverse mortgage. If you wish to obtain HUD Home Equity Conversion Mortgage (HECM), you might want to consult with professional hecm counselor who treats you with respect and does his/her best to make you feel comfortable during the process.

The HUD HECM has three types of rates: fixed, monthly adjustable and annual adjustable rates. As of 28 May 2010, HECM adjustable rate is 2.093 percent, while HECM fixed rate is 4.99 percent. A reverse mortgage loan need to be paid off only when you sell the property or no longer occupy your house as primary residential place for 12 months or longer. If you are wondering what fees you might have to pay, here are some of them:

1. Origination fee (below or not more than 2 percent of the Principal Lending Limit which is regulated by HUD in the county where the house is located).

2. Up-front mortgage insurance premium (2 percent of the Lending Limit). It is typically the largest payment you will see on any reverse mortgage.

3. Third party charges which include but are not limited to escrow and appraisal fees, title charges, recording and credit report fees and other nominal charges. Since you might need to obtain Reverse Mortgage Counseling Certificate, you will need to contact a counselor. Some phone-based counselors might charge fee for their service while others might give their service for free.

With federally-insured reverse mortgage program, the fund that you receive will not affect your Medicare or social security program and the money is free from tax (consult with your tax professional or trusted financial advisors for further information related to this subject). As long as you keep living in your house, keep the house in a good condition, keep homeowners insurance and pay property taxes according to the law, you will never have to make monthly mortgage payment.

If you are not sure whether you are eligible for a reverse mortgage loan, you could obtain accurate estimation through reverse loan calculator that is available in trustworthy reverse mortgage company website such as the All Reverse Mortgage Company (http://www.allrmc.com/) which is regularly updated. Some well-respected mortgage companies would regularly include current programs and rates offered. You might also obtain free guide on reverse mortgage by industry expert and All Reverse Mortgage Company CEO, M. Branson by submitting your name and email address via available form.