Mortgages - loans reverse in recent years

Consumer advocates warn that these borrowers are in danger, at an early stage to exhaust their resources.

House - and apartment owners between 62 and 64 years are far more likely Institute and the National Council on aging after last month published report by MetLife mature market, take a reverse mortgage today than they were in 1999, even if means you less of their home equity, can borrow their age.

The average age of those who have gone through the State-required reverse mortgage advice 71,5, the report found, was down from 76 in 2000 and nearly 77 in 1990. Twenty percent were 62, 64, who says report, compared to 6 percent in 1999, when the last detailed research has been completed.

A reverse mortgage can homeowners 62 and older to borrow against the equity from their homes, and in them the House live, without paying, as long as remains their primary residence. The interest is added to the loan balance, and the loan and the mortgage insurance premium can be added. After the borrower moves or dies, the loan must be repaid.

Almost all reverse mortgages come through the Department of housing and urban development today and are by the Federal Housing Administration through a program called home equity conversion mortgages or HECM guarantee.

Although many industry experts feel the minimum age for the inclusion of a reverse mortgage is set to 62, it is too young.

"It is a bad idea," said Judith Grimaldi, lawyer in Brooklyn, has specialized in the representation of the elderly. "You have that too much life to taking your most important asset."

Ms. Grimaldi reminds a New Jersey couple who took a reverse mortgage in the 1960s. Now in the 70's, they have no equity links in their home, which means that they undress and buy another can afford. See HECM insured reverse mortgage borrowers with property taxes and insurance must keep up to date.

The loan amount depends on a borrower age, the assessed value of a home, the interest rate and whether the rate is fixed or adjustable. "The older the person is, the more they can be justified," said Mario Martirano, senior Vice President of residential home funding Corporation in White Plains, n.y.

Homeowners who wait until at least the age of 72, take a reverse mortgage get significantly more Mr Martirano said, although he noted that some borrowers can't wait. You can use a reverse mortgage to dig, or even to prevent foreclosure, as long as they have enough equity in the property itself out of a financial hole. "We do a lot of for foreclosures," he said.

The MetLife research found that two-thirds of the homeowners wanted to search reverse mortgages, that them as a way to reduce their debt and help, "their often precarious financial situation." (The MetLife report an analysis of the 21.240 advice guides approved meetings of HUD is based on.)

Kelly Sabino, the Director of the Division's reverse mortgage mortgage in Melville, n.y., told us, "The majority of the people that we see are demand-oriented clientele," with significant debt.

Ms. Grimaldi said that the borrowers can sometimes let marketing of reverse mortgages and less expensive alternatives, such as a line of credit secured not taken into account by a House of industry.

Homeowners at or near retirement with a financial planner or a lawyer specialized in real estate, to ensure that they should work a clear plan for the next 20 years which have cost of living, said Mr Sabino. He asks customers to develop a list of relatives, which may be affected by a reverse mortgage. "Get it all together so that we can talk about" and answer their questions, he said.

This article has been revised to reflect the following correction:

Correction: 13 April 2012

Mature market distorted part of the name of the MetLife Institute an earlier version of this article. It is not "markets."

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