Cars are large and powerful, and driving has risks. So some degree of auto insurance coverage is legally required. In most states, at least, basic liability insurance is required. If you drive without insurance, you can face expensive fines or have your license revoked even if you drive very well and don't have an accident. If you are involved in an accident, auto insurance can save you thousands in repair or replacement costs for your car and potentially another car or property. It's even more expensive to address human repairs. Medical costs from accidents can reach major sums. Many auto insurance policies include options for medical. Auto insurance is just a required aspect of owning a car. It's legally required and it provides financial and physical security when you drive.

Don't wait for a hundred year storm to learn about flood insurance. Here are some key facts. One, there's generally a 30 day delay before new flood insurance coverage is in force two. It's not just riverfront homes, one in five flood insurance claims are made from low risk areas. Three. Standard homeowners insurance will not cover floods. Fortunately there are solutions. Flood insurance is quite affordable. The Federal Emergency Management Agency says that annual flood insurance premiums can be as low as $112. You can purchase flood insurance from any insurance company that participates in the National Flood Insurance Program. You can supplement N F I P coverage with private insurance for additional coverage. Not having flood insurance is costly. Damage from that rising water could cost you thousands, even an additional loan on top of an existing mortgage. Visit flood smart.gov and talk to your agent to understand your options.

Reverse mortgage loans are called based on these ‘maturity events’: All borrowers have died All borrowers have sold or conveyed title to the property The property is no longer the borrowers’ principal residence The borrower has failed to pay taxes or insurance, usually repeatedly, or the borrower is unable or has refused to maintain the property. Upon these maturity events, no additional funds may be advanced, and the loan principle, interest and fees are due and payable.

HUD’s HECM program stipulates a mortgage insurance premium charged at closing based on the funds withdrawn during the initial year of the loan. As of 2016: if you take 60% or less of available funds in year 1 the MIP is 0.5% of appraised value if you take over 60%. MIP is raised to 2.5% of appraised value. In addition, HECM charges annual premiums of 1.25% of the outstanding loan balance which accrue over time and are due when the loan is called and payable. These percentages may change over time; ask your lender for current HECM rates.

How Does Reverse Mortgage Interest Work? For a reverse mortgage, you are charged interest on the proceeds you receive. This interest compounds over the life of the loan until the loan is repaid. Typically, both fixed and variable interest rates are available. Rates are tied to a standard index, such as the 1-year Treasury Bill, or the LIBOR rate, plus an additional margin, most likely an additional 1-3 percentage points. Compare interest rates carefully in considering reverse mortgage options.

What Circumstance Might Make A Reverse Mortgage Inappropriate? If you intend to leave your home within 2-3 years other options may prove less costly than a reverse mortgage, such as home equity loans or no-interest loans. If necessary home repairs are a consideration, investigate grants from local government or non-profits. If property tax payments are motivating you, check for tax-deferral programs first.

Reverse mortgage proceeds do not affect regular Social Security or Medicare benefits. If you are on Medicaid or Supplemental Security Income proceeds must be used immediately. Any funds you retain count as an asset and may affect your eligibility for Medicaid or SSI. To be informed and safe, contact the local Area Agency on Aging, or a Medicaid expert, as early as possible in assessing a Reverse Mortgage.

You may qualify for a reverse mortgage even if you still owe on an existing mortgage on the home. If you take the loan, the reverse mortgage will take ‘first lien’ position, with priority claim on home equity. You may pay off an existing mortgage with the proceeds of a reverse mortgage; generally, all currently outstanding mortgages need to be paid off in full at the time the new reverse mortgage closes. Check the terms of an existing mortgage to understand any conditions related to early payoff.

During the first 12 months of a reverse mortgage borrowers can usually access no more than 60% of the available loan proceeds. Payoff of an existing mortgage -may- allow a higher percentage. After that, the borrower can access as much or as little of the remaining funds as needed. Reverse mortgage payments may be structured as: Tenure - equal monthly payments while borrower is alive and in the house; Term - equal monthly payments for a defined number of months; Line of credit - unscheduled payments or installments; or some combination of these three.

Reverse mortgage loan amounts depend on: the age of the borrower, or the youngest spouse for a couple; the appraised value of the home - appraisal will be required; and current interest rates. Reverse mortgages involving government programs are subject to current FHA lending limits. In general, the older you are the less you owe, and the more valuable your home the larger the amount for which you may qualify.