As publisher of the largest source of information for Black homeowners I get questions from many homeowners from Maine to California. In looking through these questions I feel many other homeowners and future homeowners could learn from the questions and the answers.<br><br>By using a reverse mortgage guide on the home that you now own, you will be able to at least consider moving to another home that better suits your current needs. Bear in mind that as of November 2008 the loan limit on reverse mortgage guides is $417,000.00. The best news about a reverse mortgage guide is that in addition to having the opportunity of buy a new home, you won't have to come up with a lot of cash and you will never have to make a mortgage payment (unless and until you permanently leave the property). However, you will still be responsible for paying taxes, insurance and other fees on the property. HUD does not require that you meet certain income and credit qualifications. According to HUD rules, the down payment on your new home will be based on the appraised value only.<br><br>The value of the home, hecm interest rate level and the age of the borrower have direct influence of the amount which a senior homeowner will get in return of this type of loan.<br><br>But even worse case is, if you take the reverse mortgage guide mortgage and will move away after just a couple of years, because these loans are for a long term use.<br><br>Loan balance will exceed property value. It is possible in some instances that the value of the loan is higher than the value of the property. The difference is forgiven. Heirs or the estate are not responsible to make up the difference.<br><br>The loan is taken against the appraised value of the home. This means, that seniors, who took their loans before the financial crises can now have loans, which are bigger than the home values. This has no meaning, because if the loan will be closed with the lower home value and the home selling price cannot cover all the costs, then the mandatory mortgage insurance will pay the difference.<br><br>Ultimately, the reverse mortgage is not a great option for people looking to live off the equity in their homes. The costs associated with getting into the loan are nearly scary and the terms dictated by lenders are often dubious. If you are considering entering into a reverse mortgage agreement, you should speak with a qualified financial professional before doing so. Remember, the salesperson trying to sell you the reverse mortgage does not have your best interest at heart! <a href="http://www.thereversemortgageguide.com/contact/">click here to read</a>