Comments on: Texas Attorney General Issues Reverse Mortgage Warnings http://www.bestreversemortgage.com/reverse-mortgage/texas-attorney-general-issues-reverse-mortgage-warnings/ The Unofficial Guide to Reverse Mortgages Tue, 06 Jan 2009 12:42:41 +0000 http://wordpress.org/?v=2.6 By: Peter G. Miller http://www.bestreversemortgage.com/reverse-mortgage/texas-attorney-general-issues-reverse-mortgage-warnings/#comment-736 Peter G. Miller Wed, 14 Nov 2007 10:12:57 +0000 http://www.bestreversemortgage.com/reverse-mortgage/texas-attorney-general-issues-reverse-mortgage-warnings/#comment-736 Lorraine -- Thanks for your posting. I do not believe it is possible to charge <u>interest</u> on principal which has not been advanced. Perhaps one of our reverse mortgage lenders can respond. Lorraine –

Thanks for your posting.

I do not believe it is possible to charge interest on principal which has not been advanced. Perhaps one of our reverse mortgage lenders can respond.

]]> By: Lorraine http://www.bestreversemortgage.com/reverse-mortgage/texas-attorney-general-issues-reverse-mortgage-warnings/#comment-725 Lorraine Tue, 13 Nov 2007 22:38:59 +0000 http://www.bestreversemortgage.com/reverse-mortgage/texas-attorney-general-issues-reverse-mortgage-warnings/#comment-725 It is my understanding that the accrued mortgage interest begins on the day of inception on the TOTAL amount that could be advanced, not on the actual amount that is advanced. For instance, a $700K home could have a reverse mortgage of $300K, the interest would accrue on the full $300,000 beginning day one, plus the amount that could be borrowed would be increase by the unpaid interest. How sad; this type of loan is predatory and should be regulated. It is my understanding that the accrued mortgage interest begins on the day of inception on the TOTAL amount that could be advanced, not on the actual amount that is advanced.

For instance, a $700K home could have a reverse mortgage of $300K, the interest would accrue on the full $300,000 beginning day one, plus the amount that could be borrowed would be increase by the unpaid interest. How sad; this type of loan is predatory and should be regulated.

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