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Reverse mortgage is a loan that the seniors or old homeowners could acquire to access the equity in their homes to tide over the financial crisis. Taking reverse mortgage loans lets you receive money and increase debt by turning large home equity into cash, instead of making a mortgage payment to reduce your debts.This reverse mortgage is available only for the seniors and they have to satisfy few eligibility requirements to obtain one. This article is an attempt to provide information on the features of reverse mortgage and the eligibility requirements. Read on.
To begin with, the eligibility requirement is:
1. You must be 62 or older of age.
2. You must own the house.
3. You must have enough equity on your home.
4. You must be the one staying in the house as primary resident.
5. The home should be in a good condition.
6. Make the reverse mortgage your first mortgage.
7. Must be ready to meet a HUD counsellor.
You may use the loan amount for paying your medical bills, taxes or for any other purpose. The loan amount is exempt from income tax. The reverse mortgage loan is sponsored and insured by the government, thus is risk free. In the event of death of the borrower, either the heir or successor may pay the remaining loan amount or, if not, the house can be sold to pay back the loan.
Various payment options for the loan are available for your choice. You can take the full amount in one stretch, or opt for a periodic payment, or combine both by taking a bit of amount in bulk and receive the rest periodically.
There is a cost involved in getting the reverse mortgage, which will be mostly paid from the mortgage loan as a package. Typically the costs could be application fees, insurance, credit report fees, service fees, etc. As a start, to acquire reverse mortgage you need to speak to a lender or in certain mortgage cases, you may be required to talk to a counsellor as well.
This article is for general information on Reverse Mortgage and shouldn’t be taken as an expert advice. I suggest that you speak to a lender or a mortgage expert to have more clarity.
If you enjoyed the article, leave your esteemed comment and certainly do subscribe to the blog’s RSS feed by clicking on the RSS feed button at the top right hand corner of this page.
I also presume you could be interested in yet another article on “How to choose right mortgage- tips” at
http://vikramkir.blogspot.com/2008/07/how-to-choose-right-mortgage-tip-right.html
To begin with, the eligibility requirement is:
1. You must be 62 or older of age.
2. You must own the house.
3. You must have enough equity on your home.
4. You must be the one staying in the house as primary resident.
5. The home should be in a good condition.
6. Make the reverse mortgage your first mortgage.
7. Must be ready to meet a HUD counsellor.
You may use the loan amount for paying your medical bills, taxes or for any other purpose. The loan amount is exempt from income tax. The reverse mortgage loan is sponsored and insured by the government, thus is risk free. In the event of death of the borrower, either the heir or successor may pay the remaining loan amount or, if not, the house can be sold to pay back the loan.
Various payment options for the loan are available for your choice. You can take the full amount in one stretch, or opt for a periodic payment, or combine both by taking a bit of amount in bulk and receive the rest periodically.
There is a cost involved in getting the reverse mortgage, which will be mostly paid from the mortgage loan as a package. Typically the costs could be application fees, insurance, credit report fees, service fees, etc. As a start, to acquire reverse mortgage you need to speak to a lender or in certain mortgage cases, you may be required to talk to a counsellor as well.
This article is for general information on Reverse Mortgage and shouldn’t be taken as an expert advice. I suggest that you speak to a lender or a mortgage expert to have more clarity.
If you enjoyed the article, leave your esteemed comment and certainly do subscribe to the blog’s RSS feed by clicking on the RSS feed button at the top right hand corner of this page.
I also presume you could be interested in yet another article on “How to choose right mortgage- tips” at
http://vikramkir.blogspot.com/2008/07/how-to-choose-right-mortgage-tip-right.html
3 comments:
Very nice tips. Thanks for sharing!
Reverse Access Livedoor
thanks for these wonderful tips.
Reverse mortgage is a useful estate planning tool that banks and financial institutions ought to offer making available to seniors. It's a great security for them to ensure the delivery of their pensions in the amounts they thought forthcoming.
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