An explanation of reverse mortgages
Seniors can deal with the financial uncertainty they experience by using a reverse mortgage. Retirement can be tough on the financial side, and a reverse mortgage gives them the breathing room they need to enjoy their retirement.
For many seniors, income is low compared to the days when they were working. Not only that, costs are rising. Especially living costs and medical costs. What many seniors do not realize, is that they can use their house to access extra funds to enjoy retirement. This is where the reverse mortgage comes in. A reverse mortgage enables a senior to use the equity that's built up in a house and turn it into cash.
The senior does not lose ownership of the house when they choose for a reverse mortgage. After the reverse mortgage goes in effect, the home still belongs to the senior and they have full right to the value appreciation in the future. The reverse mortgage can be paid off at any time, or not at all. When the last titleholder dies, the proceeds of the homesale pay off the reverse mortgage.
In order to qualify for a reverse mortgage, a senior must be at least 62 years old. There must be at least some equity in the home, in order to provide the collateral for the reverse mortgage. Current income is not important and neither is credit history. Sometimes, there is still a small mortgage left, or there is a lien on the home. Many times, these remaining debts are paid off by the proceeds from the reverse mortgage at closing.
The greatest thing about a reverse mortgage is the freedom of spending the homeowner gets. The money can be spent any way the homeowner wants. It is oftentimes used for leisure, home improvement, travel and enjoying the retirement period. The amount of money that can be freed up by a reverse mortgage depends on the age of the senior and the equity that's in the house. Because of the fact that monthly payments are not necessary, a reverse mortgage can be an ideal way for seniors to get extra financial room in these times.
For many seniors, income is low compared to the days when they were working. Not only that, costs are rising. Especially living costs and medical costs. What many seniors do not realize, is that they can use their house to access extra funds to enjoy retirement. This is where the reverse mortgage comes in. A reverse mortgage enables a senior to use the equity that's built up in a house and turn it into cash.
The senior does not lose ownership of the house when they choose for a reverse mortgage. After the reverse mortgage goes in effect, the home still belongs to the senior and they have full right to the value appreciation in the future. The reverse mortgage can be paid off at any time, or not at all. When the last titleholder dies, the proceeds of the homesale pay off the reverse mortgage.
In order to qualify for a reverse mortgage, a senior must be at least 62 years old. There must be at least some equity in the home, in order to provide the collateral for the reverse mortgage. Current income is not important and neither is credit history. Sometimes, there is still a small mortgage left, or there is a lien on the home. Many times, these remaining debts are paid off by the proceeds from the reverse mortgage at closing.
The greatest thing about a reverse mortgage is the freedom of spending the homeowner gets. The money can be spent any way the homeowner wants. It is oftentimes used for leisure, home improvement, travel and enjoying the retirement period. The amount of money that can be freed up by a reverse mortgage depends on the age of the senior and the equity that's in the house. Because of the fact that monthly payments are not necessary, a reverse mortgage can be an ideal way for seniors to get extra financial room in these times.
About the Author:
Mijnadviseur writes articles about mortgages in English, he also writes articles about beleggingshypotheek and hypotheekrente berekenen in Dutch.
posted by Debt Consolidation Loan at
3:38 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home