Personal Investment & Loan Tips : Reverse Mortgage Rules

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.

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