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This is financial adviser, Patrick Munro, talking about reverse mortgage rules. Basically,
reverse mortgages are very creative tools, that senior Americans, age sixty two years
of age and older, are able to participate in, but there are some rules to be mindful
of. Basically, there are certain limitations, as to the amount of credit that can be taken
out of a home, and those are established by the FHA, the Federal Housing Authority. There's
also some rules that the senior Americans that do get involved in a reverse mortgage,
have to go through a required counseling session, with an FHA Counselor, so that they're fully
aware of how the interest accrues, on the back end of the mortgage note, going forward.
There are no fees, apart from an appraisal fee, normally, to make sure the house is at
least worth the value, that the loan is being made upon. There's also rules that the individual
that does live there, has to maintain the property, as they always have, and also pay
the taxes, as they always have, as well. That is a rule that must be kept up, so this is
Patrick Munro, financial adviser, talking about some of the rules in relation, to reverse
mortgages.