Financially speaking, waiting another two years was not an option for them: month after month their income stream was barely enough to pay the two mortgages. The counselor's job is to educate you about all of your mortgage options. The borrower, on the other hand, might have the option of making the choice between a variable interest rate or a fixed interest rate at the adjustment date. There are no restrictions on funds released to you and no taxes to be paid on that money. If there is a non-borrower resident living in the home who is not on title, it's important that they understand what happens when the owner on title permanently vacates the property, either by death or move out, and the loan becomes due and payable. The borrower is responsible for paying property taxes, home insurance and HOA dues (if any).
HUD was able to determine that this was occurring because many borrowers were taking advantage of the one-time draw option. The MIP for borrowers who access 60% or less of their funds is 0.50 percent of the appraised value of the home. By talking over the pros, cons, advantages, disadvantages, benefits and pitfalls with an approved HUD counselor and specialist, a senior can decide if a reverse mortgage is good for them. All of these changes have been lauded by the National Reverse Mortgage Lending Association (NRMLA) as long-overdue measures that will strengthen the loan and bring new lenders and borrowers into the program. Consider a working retirement Some retirees continue to work part time throughout their retirement either because they enjoy working or because they need the income to make ends meet.