|
What is a Reverse Mortgage? Simply stated, a reverse mortgage is a loan that enables homeowners (age 62 and older) to convert part of the equity in their home into a tax-free income without having to sell the home, give up the title, or take on a new monthly mortgage payment. More and more homeowners are using this to supplement their retirement income, pay for health care, modify their home, or just get some cash for emergencies. Since this is a new product, some people have misconceptions of what a reverse mortgage is. The bank doesn't give you money and take your house. Let's look at some of the most common questions. Are reverse mortgages for desperate people? No. It is an excellent financial planning tool used from people of all walks of life. How do I qualify? You must be 62 or if both parties are on the mortgage, then you both must be at least 62. And, you must have equity in your home. What if I still owe on my home? You may still qualify even if you have a balance on your first mortgage. The proceeds must be used to pay off the mortgage, first. How much can I get? This depends on several factors such as, the age of your home, the value, your age at the time of closing, and interest rates. Is it just monthly payments? No. You can get a lump sum, line of credit, monthly payments or a » Discuss it » Continue Reading »
» Submit a comment or contribute to this article
Read More Articles, They Are Related to This Topic:;
Mortgage Research Good News For House Buyers
Figures from the Council of Mortgage Lenders show that in July gross lending in totalled £25.2 billion, with fixed...
Read it then add your comment
Refinancing And Car Finance - Is It Worth It?
Refinancing and Car Finance - Is it Worth It?No doubt you have heard of refinancing your mortgage. It has...
Read it then add your comment
How To Get The Best Home Equity Loan
Are you wondering how to get the best Home Equity loan? Do not be afraid to shop around. If you decide that the...
Read it then add your comment
Home Equity Loan ? A Reverse Mortgage Could Provide A Comfortable Retirement!
While only comprising about 1% of all mortgages, the reverse mortgage has gained in popularity in recent years. ...
Read it then add your comment
Mortgage Brokers Or Banks: Which Is Right For You?
When you're looking for a home loan, you might work with an officer at a bank or other lending institution, or you...
Read it then add your comment
| 