Do you have any info on “reverse mortgages”? Where can I learn more?
Question by famousbusinessguy: Do you have any info on “reverse mortgages”? Where can I learn more?
Best answer:
Answer by mike4400
A reverse mortgage is a loan on the equity of a Primary residence.At the time of your death the principal plus the compounded interest must be payed back either through the sale of said property or payed by your heirs.Closing cost can be high but, most people don’t care about fees they just want an income . The amount of monthly monies payed to the borrower vary with the age of the borrower.If you are 70,have no children and want to live in your home it can be a good way to take money out of a home. If you are 60-70 the amount of the payment may not be worth the trouble.
Give your answer to this question below!
Tags: info, learn, More, Mortgages, Reverse, reverse mortgage
A “reverse” mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. The cash you get from a reverse mortgage can be paid to you in several ways:
all at once, in a single lump sum of cash;
as a regular monthly cash advance;
as a “credit line” account that lets you decide when and how much of your available cash is paid to you; or
as a combination of these payment methods.
No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older.
Please visit the AARP website for information. Also, make sure you go through counseling with a non-profit organization that is NOT affiliated with the lender before you apply.
To find more info, many lenders have a dvd that you can request in the mail.
In short, a reverse mortgage is a loan that seniors can use to borrow money against their house and not make monthly payments. It’s a safe program protected by the federal government.
You can take the money in a lump sum, line of credit or monthly payments. The amount varies with your age, property value, and interest rates. You can call a loan officer and get a quote pretty easily.
Reverse mortgages can be great for seniors who have a limited income but have lots of equity in their home. Basically they can stay in the home without paying the mortgage (still have to pay property tax and insurance) until they move or die.
The downside is that the loan balance grows as time goes on and you could end up with nothing to pass down to your heirs. But if you’re struggling to pay the bills it may be worth looking into. Just do plenty of research before jumping in.