For those over the age of 62 and who own at least 75% of the equity in their home, a reverse mortgage allows them to cash out the equity through the receipt of a monthly term payment or access to a line of credit to draw upon. In other words, the lender provides cash to the homeowner on a recurring basis and the interest is simply accrued over the lifetime of the loan. The loan's principle and interest do not need to be repaid until the home is sold or the owner has passed away.

Reverse mortgages provide a method for an aging homeowner to supplement their monthly income via their equity. This type of loan is non-taxable and will not be used in the calculation of Social Security and Medicare benefits either. The primary obligations of the homeowner are to simply maintain the home's value, insurance and of course, do not default on property tax payments.

There are three types of reverse mortgages available, all with their own advantages and disadvantages. These are:

1. Single Purpose Reverse Mortgages - Typically offered by state and local governments, these are low-cost loans available to low to moderate income homeowners. The use of the loan is for specific purposes, such as home repairs or for paying property taxes.

2. Home Equity Conversion Mortgages or HECM - These are federally insured loans backed by HUD. While more costly than other reverse mortgages, they are widely available, not limited to specific income requirements and may be used for any reason at all.

3. Proprietary Reverse Mortgages - Available through private lenders, the loans may be used for any purpose, but are generally associated with higher fees.

The actual amount of the loan itself will vary according to the borrower's age, appraised value of the home, interest rates and so on. Additionally, there are upfront costs to be considered, such as closing fees, property assessments, etc. The reverse mortgage may include a monthly service fee as well ($25 to $35 per month). The interest is not tax-deductible until it is repaid.

When the loan ends (the home has been sold or the owner has passed away), it is usually repaid through the sale of the home. One important point to reverse mortgages is that the amount of the loan may not exceed the value of the home. This in turn means that if the sale of the home does not minimally earn enough to pay off the loan, the lender or insurer, the FHA in most cases, must absorb the loss.

This last part is what makes a reverse mortgage so attractive to elderly homeowners. Regardless of the outcome, no debt from the loan is passed on to the estate and subsequently the heirs of the homeowner. When researched properly, with the consultation of a CPA and involvement of the immediate family, a reverse mortgage can be an exceptional vehicle for supplementing retirement income through the home's equity.

Will the Congress come to the rescue of consumers to initiate reform of home loan mortgage lenders? It may. The Democrat-led Congress may submit legislation to place stringent measures to curb abuses within the mortgage industry.

The mortgage industry includes not only mortgage lenders, mortgage brokers, but also home builders who own mortgage companies, Wall Street, and other mortgage security investors. If stringent measures are implemented by Congress, it will protect future consumers from being exploited. However, it may have an ancillary effect in that it may protect purchasers of mortgage backed securities. The recent past has seen unmitigated mayhem in the market. Countrywide Financial's second quarter profits dropped, leading to a fall in share prices to a 52 week low on July 24, 2007. Its second-quarter net income dropped to $485.1 million from $722.2 million, a year ago with revenue falling 15% to $2.55 billion.

This week American Home Mortgage, a large national mortgage lender announced that it may not be able to fund current inventory of home loans in excess of $300 million dollars, sending its stock value plummeting by 90 %. But the subprime mortgage disaster is affecting even prime loan lenders and borrowers.

Wall Street is also reeling from the rise in foreclosures, oversupply of homes, subprime mortgages, defaults, and more. Nevertheless, Wall Street is complicit along with home builders and mortgage lenders in creating this problem.

Beazer Homes, one of the many homebuilders that started or increased their mortgage lending business to facilitate the buying of their homes. However, allegations are now surfacing from former homeowners who have defaulted on their mortgages that some builders inflated their income or altered some material facts on the mortgage applications in order to get them approved. In order to get homes sold many financially unqualified people were approved for mortgages and other home loans such as mortgage refinancing.

The housing market boom of the recent five years was due to many diverse factors. Banks, mortgage companies, and homebuilders relaxed their lending standards and flooded the market with mortgage loans, along with loans to people with questionable credit. Unlike before adjustable rate mortgages were doled to increase their bottom line. The folks on Wall Street stimulated this reckless mortgage lending behavior by continuing to buy huge quantities of home loans for repackaging as securities. Many of these mortgage backed securities contained risky subprime mortgages.

Now that the housing bubble has burst, rising foreclosure rates, oversupply of homes, increasing mortgage rates, less home buying demand, and the negative residual effects upon the economy is leading to closer examination by government into the role of mortgage lenders, home builders, and Wall Street.

The property market has proved problematic for a number of individuals seeking to buy their own home in recent years, both first home buyers and individuals that could no longer afford their mortgage repayments as well as their debt repayments. As a result, many individuals have spotted a niche in the market that they can tap into in order to invest. In fact, housing has really become one of the major areas of investment in the UK at the moment. This has led to buy to let mortgage rates coming under scrutiny. After all, most individuals cannot afford to buy a second home that they want to let out without a buy to let mortgage.

Many individuals rent their homes today, and buy to let mortgage rate have actually increased in popularity as a result. Regardless of whether or not an individual has a mortgage on a property, an extra income would come in handy, especially when the income in question actually pays for that home investment unaccompanied by the usual bills!

Buy to let mortgage rates actually apply to property investments because regular mortgages cannot be taken out on a second home. Banks and mortgage providers do not look upon a second home as a safe investment for themselves, and this is where the buy to let mortgage has come from, and there is indeed a huge marketplace for them. However, the best buy to let mortgage rates out there may well be that little bit more difficult to find than the product itself because there are so many out there. With demand comes the products to fill it, and this has indeed happened here!

In the current housing market climate, complete with the interest rates that have been perpetuated by the global economic uncertainty that has been derived from a number of factors including the US sub prime crisis, the buy to let mortgage rates may actually determine the rents charged on properties as well. If the buy to let mortgage rates happen to be high at the time when the property buyer has taken a mortgage out, then rents may well be inflated to cover that. Of course, this affects some areas more than others, but the general effect may well push some rented housing out of budget as well.

Understanding this need, providers have in fact attempted to keep buy to let mortgage rates as low as possible to encourage individuals to take their products instead of those offered by their competitors. However, finance savvy investors may well be able to choose their buy to let mortgage rates as a result of the product range available. There are all sorts of buy to let mortgages available, including variable, fixed, tracker and capped products that can vary or stabilise the rates that they have to pay on the mortgage. If the investor in question knows how to work the system then he or she can indeed get a good deal and make the most of the state of the housing market at the minute!

Most people have dreams of purchasing their own houses. But they are unable to fulfill them as and when they wish because of fund shortage. Mortgage loans are indeed a boon in such situations. With the wide variety of schemes with benefits by various organizations, finding a suitable mortgage plan is a simpler task today. Our elders stayed away from mortgage as long as they could for fear of risks. These days, the scenario has changed drastically. Youngsters who earn lump sums of money are interested in such schemes to buy their own home and settle down at the earliest.

Florida mortgage loan states that the property that the client purchases represents the collateral for the loan borrowed. Florida mortgages have several well defined steps to make the deals. Firstly, the borrower is expected to apply for the loan he chooses. This requires a great deal of homework. Clients must do some background research and get knowledgeable about the market situations. They must be at least vaguely aware of the market worth of their property before offering it as security.

There are several websites such as the California mortgage pages which guide first time borrowers regarding the procedures and any risks involved. There is a simple application procedure where the homebuyers may fill in a form and submit their expectations. This is definitely not obligatory and it is free of cost. This is done to attract potential loan applicants. The criteria to apply are equivalent to other forms of loans. The mortgage agents may schedule a meeting with prospective borrowers. They evaluate the borrower's property in terms of location, opportunity and market estimate.

Of course, people applying for mortgage the very first time may have several apprehensions regarding the risks. After all, a huge amount of money is at stake. But the risks are same for all, whether it is a fresh client or a seasoned borrower. Getting the best Florida mortgage loan plan is made easy if the borrower does extensive research before embarking on the loan procedure. There are useful grants and lower payment facilities offered to fresh borrowers. If the borrower is capable of making a substantial down payment, he is usually granted the loan if all other prerequisites are satisfied. So prepare well and grab a good scheme.