Comments on: Guide to Reverse Mortgages: Know The Risks http://www.bhatt.id.au/blog/guide-to-reverse-mortgages-know-the-risks/ Technology Reviews, Movies and TV Shows, Personal Finance, Politics, Environment, Books... Tue, 07 Feb 2012 04:06:03 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: barry http://www.bhatt.id.au/blog/guide-to-reverse-mortgages-know-the-risks/#comment-1610 barry Wed, 04 Mar 2009 04:26:29 +0000 http://www.bhatt.id.au/blog/guide-to-reverse-mortgages-know-the-risks/#comment-1610 One disadvantage is the cost of a reverse mortgage, which can be very expensive. This is because of the rising-debt nature of the loans. A typical reverse mortgage may be $300 monthly with a yearly interest rate of 12% compounded monthly. One disadvantage is the cost of a reverse mortgage, which can be very expensive. This is because of the rising-debt nature of the loans. A typical reverse mortgage may be $300 monthly with a yearly interest rate of 12% compounded monthly.

]]> By: John P http://www.bhatt.id.au/blog/guide-to-reverse-mortgages-know-the-risks/#comment-1609 John P Wed, 20 Aug 2008 15:40:05 +0000 http://www.bhatt.id.au/blog/guide-to-reverse-mortgages-know-the-risks/#comment-1609 It will not be long before the credit crunch hits Oz and all those older home owners are going to find out that a house is for living in not an ATM machine. It will not be long before the credit crunch hits Oz and all those older home owners are going to find out that a house is for living in not an ATM machine.

]]> By: John P. http://www.bhatt.id.au/blog/guide-to-reverse-mortgages-know-the-risks/#comment-1608 John P. Fri, 07 Dec 2007 17:42:13 +0000 http://www.bhatt.id.au/blog/guide-to-reverse-mortgages-know-the-risks/#comment-1608 When it comes to deciding whether a Reverse Mortgage is a good investment or not, many senior homeowners don't really understand their options. For some, a reverse mortgage is a way out of debt, or a way to pay for a child's education. Others see a Reverse Mortgage as just another way for the bank to make money. The truth of the matter is, deciding whether a Reverse Mortgage is a good investment or not depends on the borrowers unique situation. It also depends on factors that can only be calculated with a special tool. When it comes to deciding whether a Reverse Mortgage is a good investment or not, many senior homeowners don’t really understand their options. For some, a reverse mortgage is a way out of debt, or a way to pay for a child’s education. Others see a Reverse Mortgage as just another way for the bank to make money.

The truth of the matter is, deciding whether a Reverse Mortgage is a good investment or not depends on the borrowers unique situation. It also depends on factors that can only be calculated with a special tool.

]]> By: Neerav http://www.bhatt.id.au/blog/guide-to-reverse-mortgages-know-the-risks/#comment-1607 Neerav Thu, 22 Nov 2007 00:17:30 +0000 http://www.bhatt.id.au/blog/guide-to-reverse-mortgages-know-the-risks/#comment-1607 "The director of policy and campaigns at the Consumer Action Law Centre, Gerard Brody, said ... the most important thing to ensure in a reverse mortgage was a no-negative-equity guarantee - which made sure the size of the loan did not grow larger than the value of the property. The majority of borrowers interviewed by the commission were unaware of the tough penalties imposed if they breached their loan conditions. These breaches typically occur when borrowers let other people live in the house without the lender's permission; fail to pay council rates or home insurance, or allow the property to deteriorate in value. Penalties can include having to repay the loan completely, having to sell the property, or paying a fine." - excerpt from <a href="http://business.smh.com.au/elderly-unaware-of-reverse-risk/20071121-1c00.html">Elderly unaware of reverse risk (SMH)</a> “The director of policy and campaigns at the Consumer Action Law Centre, Gerard Brody, said … the most important thing to ensure in a reverse mortgage was a no-negative-equity guarantee – which made sure the size of the loan did not grow larger than the value of the property.

The majority of borrowers interviewed by the commission were unaware of the tough penalties imposed if they breached their loan conditions. These breaches typically occur when borrowers let other people live in the house without the lender’s permission; fail to pay council rates or home insurance, or allow the property to deteriorate in value. Penalties can include having to repay the loan completely, having to sell the property, or paying a fine.”
- excerpt from Elderly unaware of reverse risk (SMH)

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