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Country Wide Home Loans Reviewswww.countrywidehomeloanssite.info |
What Is Reverse Mortgage?
What is reverse mortgage? This has become a popular form of home equity loan in the USA, available to Senior homeowners aged 62 years and over. It is a relatively safe plan run by the US Department of Housing and Urban Development (HUD) under Federal Housing Administration (FHA). Basically, a reverse mortgage allows the homeowner to convert the equity on their house or part of it into cash. A reverse mortgage will enhance substantially the standard of living of the senior citizen by supplementing their social security, plus the money can go into other useful expenses like meeting the costs of home improvements and costs of needed health care. And the good thing is that unlike other home loans or mortgages no repayments are required unless the house is sold, or unless it ceases to be the primary residence of the owner. In this case the reverse mortgage lenders will then recover their money and interest accruing, and the rest reverts to the owner or their heirs. Some of the requirements for qualification for a reverse mortgage are: the homeowner be over 62 years of age; they be the outright owner of the house; the existing mortgage balance is not high; the owner must reside in the house. Please note that if you move to a care facility it will be deemed as if you are no longer residing in your home. It is a good idea to consult with a HUD- approved counselor to get all your questions answered, and to assess your qualification for the reverse mortgage. A reverse mortgage calculator will help you determine how much you can currently borrow from your equity. A reverse mortgage is a loan and can be expensive. Like all financial decisions it is important to take careful consideration before taking one. Ask yourself questions like; do I need it? Can I afford it? Do I have other options I can look at, like selling this house and buying another smaller cheaper house? Do the homework, understand clearly the reverse mortgages pros and cons, and then make the right decision. A reverse mortgage could well be right for you. |
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