You’ve probably heard your friends and family about reverse mortgages. There was also a lot of commercials with information about reverse mortgages and reverse mortgage companies. Yet with all this talk about reverse mortgages that FHA insured and what they mean for you, what is a reverse mortgage?
A reverse mortgage is specifically designed for home owners who are 62 years of age. With this product, you can receive the loan money to yourself in the form of a lump sum, regular monthly checks or credit line. The money is typically paid back with interest when you sell your home, permanently move or disappear.
Reverse mortgages are becoming increasingly common nowadays. Why? Reverse mortgage loan advances are not taxable and are generally not affect Social Security or Medicare benefits. She holds the title of your home and you do not have to make the monthly repayments. The loan is repayable when the last surviving borrower dies, sells the home, or live at home as principal residence. Unlike a traditional mortgage, the owner makes no payments and all interest is added to the lien on the property.
There are three types of reverse mortgages:
• disposable reverse mortgages, offered by some state and local government agencies and non-profit organizations
• Federal insured reverse mortgages, known as Home Equity Conversion Mortgages (HECMs) and supported by S. U. Department of Housing and Urban Development (HUD)
• reverse mortgages owned, private loans that are guaranteed by the companies that develop them.
Reverse Mortgages are the cheapest disposable. They are not available everywhere and can be used for a purpose which is specified by government or non-profit lender. For example, the creditor could say that the loan can be used to pay for home repairs, improvements or property taxes. Most home owners with low or moderate income are eligible for these loans.
An FHA Insured Home Equity Conversion Mortgage (HECM) reverse mortgages and the owners are often more expensive than traditional home loans. It ‘important to consider, especially if you plan to stay at home for a short period of time or take a dirt nap. HECM reverse are widely available, have no income or medical needs, and can be used for any purpose.
Reverse Mortgage is paid in a variety of ways. You may receive a lump sum, periodic payments, a line of credit or some kind of combination. Lump is the easiest. You can get the balance of the loan at once. Do with what you want, but there will be no tomorrow. If you subscribe to a periodic payment plan, you will get regular payments. These payments can last for a number of years (10 years, for example), or until the loan is due (often because of your death or permanently out of the house).
If you do not know exactly how much you spend or how much time you need a credit line can make sense. Some lines of credit reverse mortgages are “growth” of lines of credit means that you can get more money available to you in time. Not bad. Can not decide?
You can use a combination of these programs. For example, you could take a small lump sum at the front and keep a credit line for later. This may be a reasonable approach if you need to repay existing debt with a portion of your reverse mortgage.
Reverse mortgages have helped hundreds of thousands of home owners to improve their quality of life in retirement. A reverse mortgage can help you retire comfortably. It can give you money when you need it. No monthly mortgage payments, easy qualifying, money and tax without the cash needed for closing costs. We can do better? If you want to know how much money you qualify and if you qualify, call a FHA approved reverse mortgage lender.
We have helped thousands of elderly home owners to solve their financial problems. Our agents and brokers are experienced collectively for over 60 years in Reverse Mortgages and general financial services, including operators who are pioneers in the field with over 12 years experience mortgage reverse. Our commitment to providing financial solutions for the elderly is shown by the number of references that come from our existing customers.