Many times throughout our lives it seems the most well laid out plans don't even work out the way we planned. All of your life you have been doing the best you could possibly do, however its tough to save money for retirement when life keeps throwing you curve balls. Do you need money to help your grandchildren? What about the medical expenses that keep piling up? Perhaps you lost your job and have no income at all to cover bills? Whatever the situation is, please know that there is a way out of this debt if you are over the age of 62.
Over the age of 62? Have equity in your home? Then you may qualify for a reverse mortgage. This particular type of mortgage enables you to cash in on your equity without selling your home, moving away, etc. Its possible to then use the money or cash you get to pay down the bills, or perhaps completely pay off all of your bills. Maybe you can relax for once in your life and take the weight of the world off your shoulders by knowing that your bills are being taken care of.
Well, I'm sure I have your attention by now and you may be questioning yourself about reverse mortgages and how they work. If you remember how a traditional mortgage, then you know that you make payments to the loaner. With reverse mortgages, the opposite is true. You get money from the lender and are able to remain in the home until you become deceased or no longer maintain your residency.
Primarily speaking, the reverse mortgage loan must be paid off when you die, or no longer consider it home. You should become familiar with the rules, risks, and rewards before you dive in too deep. Most importantly, the reverse mortgage pros and cons. Being over the age of 62 is a must, and this rule remains true even if the house is jointly owned you both must meet this requirement. A great thing about these types of loans is that the loan is not based on income as with a traditional mortgage. Lenders don't even look at your income. Another great thing is the IRS entitles you to tax-free ROI.
There are a few different types of reverse mortgages. We will try and describe as many in this article as we possibly can. The first one is a Single Purpose Reverse Mortgage. This particular loan has low costs associated with it and unfortunately is not available everywhere. They can usually only be used for home repairs, improvements to the property, or to pay taxes and such. You must meet income requirements for this loan. Your income must be low in most cases. The second type of reverse mortgage is whats called a Home Equity Conversion Mortgage, which stands for HECM. These loans often have high costs associated with them consisting of origination fees, servicing fees, closing costs - however these loans are widely available. They also have no income requirements and can be used for any purpose whatsoever. These loans are federally insured so you must meet with a counselor who is approved from thew government who will explain the consequences of taking out a reverse mortgage. Your loan options are bountiful. You have the option of receiving monthly payments, line of credit, or you can actually claim both if you truly want to. These types of loans are available in all 50 states.
While many factors are involved, one thing remains the same - there are many reverse mortgage pros and cons. You should arrange a meeting with a government approved counselor who will go over reverse mortgages how they work and steer you in the right direction to make an informed decision. Many variables can influence how much money you will receive, such as the age of the homeowner, location of the house, interest rates, appraised home value, etc.
To find out the reverse mortgage pros and cons, visit Pam's site today. You can find out what today's reverse mortgage disadvantages are right now before you make any rash decisions.
Over the age of 62? Have equity in your home? Then you may qualify for a reverse mortgage. This particular type of mortgage enables you to cash in on your equity without selling your home, moving away, etc. Its possible to then use the money or cash you get to pay down the bills, or perhaps completely pay off all of your bills. Maybe you can relax for once in your life and take the weight of the world off your shoulders by knowing that your bills are being taken care of.
Well, I'm sure I have your attention by now and you may be questioning yourself about reverse mortgages and how they work. If you remember how a traditional mortgage, then you know that you make payments to the loaner. With reverse mortgages, the opposite is true. You get money from the lender and are able to remain in the home until you become deceased or no longer maintain your residency.
Primarily speaking, the reverse mortgage loan must be paid off when you die, or no longer consider it home. You should become familiar with the rules, risks, and rewards before you dive in too deep. Most importantly, the reverse mortgage pros and cons. Being over the age of 62 is a must, and this rule remains true even if the house is jointly owned you both must meet this requirement. A great thing about these types of loans is that the loan is not based on income as with a traditional mortgage. Lenders don't even look at your income. Another great thing is the IRS entitles you to tax-free ROI.
There are a few different types of reverse mortgages. We will try and describe as many in this article as we possibly can. The first one is a Single Purpose Reverse Mortgage. This particular loan has low costs associated with it and unfortunately is not available everywhere. They can usually only be used for home repairs, improvements to the property, or to pay taxes and such. You must meet income requirements for this loan. Your income must be low in most cases. The second type of reverse mortgage is whats called a Home Equity Conversion Mortgage, which stands for HECM. These loans often have high costs associated with them consisting of origination fees, servicing fees, closing costs - however these loans are widely available. They also have no income requirements and can be used for any purpose whatsoever. These loans are federally insured so you must meet with a counselor who is approved from thew government who will explain the consequences of taking out a reverse mortgage. Your loan options are bountiful. You have the option of receiving monthly payments, line of credit, or you can actually claim both if you truly want to. These types of loans are available in all 50 states.
While many factors are involved, one thing remains the same - there are many reverse mortgage pros and cons. You should arrange a meeting with a government approved counselor who will go over reverse mortgages how they work and steer you in the right direction to make an informed decision. Many variables can influence how much money you will receive, such as the age of the homeowner, location of the house, interest rates, appraised home value, etc.
To find out the reverse mortgage pros and cons, visit Pam's site today. You can find out what today's reverse mortgage disadvantages are right now before you make any rash decisions.
