A senior uses the reverse mortgage to supplement the social security, to pay the suddenly increased medical bills, to pay the home repair or to buy a home for a child. The reverse mortgage has the equity of the home as the only guarantee and a senior has not to present the credit score or the income information.
1. How Much Can I Borrow?
The reverse mortgage program has strict rules about the amount of the loan. The absolute maximum is $ 625.000. The factors, which will determine the loan amount are the age of the borrower, the appraised value of the home and the interest rate level.
We can say, that the older the borrower is, the higher the appraised value of the home and the lower the interest rate level, the more a borrower can get. The whole loan sum will be taken against the equity of the home.
2. Am I Eligible?
The Federal Government planned this loan type for seniors, who are at least 62, who own their homes, where they have equity left and who live in that home permanently. The lender will not ask any credit nor income information.
3. How Does The Lender Pay Me?
The borrower, a senior, can decide, how the lender will pay to him. The alternatives are the monthly installments, the lump amount, the credit line or a combination of some or all of these. A senior can use the money as he will, there is no reporting. Of course the need of a senior determines, how the payments will be done.
4. When I Will Pay Back?
The idea of the reverse mortgage is to arrange more disposable cash to a senior without monthly back payments. All costs, capital and interests will be paid back, when the loan will be closed. This happens, when a senior will move away, sell the home or die.
Then the home will be sold and the reverse loan and all the costs will be paid to the lender. A senior has to take a mortgage insurance, which will be used, if the home selling price does not cover all the costs. The borrower can never owe more than the value of the home.
5. Is My Home The Right Type?
The reverse mortgage program accepts almost all home types. A senior must have a single family home, a 1 - 4 unit home, which includes at least one unit for the borrower, a condominium, which is approved by HUD or a manufactured home, which meets FHA requirement.
It was possible to tell only the main features of the reverse mortgage in this short article. To get more detailed information about the program, please contact the federal reverse loan counselor, who can tell you, whether the loan fits to your financial needs.
Juhani Tontti, B.Sc., Marketing. A senior can get great benefits from the reverse mortgage loan. The reverse mortgages include pros and cons, which a senior has to know. Visit: reverse loan
1. How Much Can I Borrow?
The reverse mortgage program has strict rules about the amount of the loan. The absolute maximum is $ 625.000. The factors, which will determine the loan amount are the age of the borrower, the appraised value of the home and the interest rate level.
We can say, that the older the borrower is, the higher the appraised value of the home and the lower the interest rate level, the more a borrower can get. The whole loan sum will be taken against the equity of the home.
2. Am I Eligible?
The Federal Government planned this loan type for seniors, who are at least 62, who own their homes, where they have equity left and who live in that home permanently. The lender will not ask any credit nor income information.
3. How Does The Lender Pay Me?
The borrower, a senior, can decide, how the lender will pay to him. The alternatives are the monthly installments, the lump amount, the credit line or a combination of some or all of these. A senior can use the money as he will, there is no reporting. Of course the need of a senior determines, how the payments will be done.
4. When I Will Pay Back?
The idea of the reverse mortgage is to arrange more disposable cash to a senior without monthly back payments. All costs, capital and interests will be paid back, when the loan will be closed. This happens, when a senior will move away, sell the home or die.
Then the home will be sold and the reverse loan and all the costs will be paid to the lender. A senior has to take a mortgage insurance, which will be used, if the home selling price does not cover all the costs. The borrower can never owe more than the value of the home.
5. Is My Home The Right Type?
The reverse mortgage program accepts almost all home types. A senior must have a single family home, a 1 - 4 unit home, which includes at least one unit for the borrower, a condominium, which is approved by HUD or a manufactured home, which meets FHA requirement.
It was possible to tell only the main features of the reverse mortgage in this short article. To get more detailed information about the program, please contact the federal reverse loan counselor, who can tell you, whether the loan fits to your financial needs.
Juhani Tontti, B.Sc., Marketing. A senior can get great benefits from the reverse mortgage loan. The reverse mortgages include pros and cons, which a senior has to know. Visit: reverse loan
