A reverse mortgage also called a "lifetime mortgage" is a type of mortgage available for persons over the age of 62 that own their home but are interested in getting money from their home as one lump sum or multiple payments. The terms and conditions of a reverse mortgage does not ask the homeowner to pay for the loan during their lifetime or until, the home is sold or the owner leaves. On a reverse mortgage, dividends are paid out to the mortgage holder and the debt increase while the equity on the house depletes.
The persons receving the reverse mortgage does not need a income or credit card but the homeowner will need to be counseled by an approved Third party financial counselling organization prior to applying for a reverse mortgage. The borrower will be charged for each counseling session so persons can ask all the questions hey need to, to be properly informed. It is very important that the borrower is completely aware of what a reverse mortgage is, so they can protect themselves. Since reverse mortgages is a fairly new program you should be properly informed. Persons who are interested in getting a reverse mortgage holders can surf the internet and visit the HUD information website so they can get a list of certified reverse mortgage loaners. All reverse mortgage lenders must be approved by HUD, if you decide to obtain a reverse mortgage from a organization that is not authorized then your property might end up owing more than your home is actually valued at.
During the time when a person receives a reverse mortgage they cannot be asked to exit the property because they are still the deed owner and family members may still be able to get the property if a reverse mortgage owner dies as long as they can pay for the reverse mortgage however, this must be done within a year of the owner dying.
The fact that the mortgager still maintains ownership of the house, means that the borrower is still required to pay for the maintenance of the property. This land taxes, home insurance and general utility fees. If you fail to make payments on home insurance, taxes and basic utilities this can cause your home to depreciate.The borrower must maintain all the obligations of the reverse mortgage. Reverse mortgages usually come with many hidden fees expenses such as origination fees, closing cost, growing interest percentage and various other mortgage fees. These fees are determined by the mortgage company.
The persons receving the reverse mortgage does not need a income or credit card but the homeowner will need to be counseled by an approved Third party financial counselling organization prior to applying for a reverse mortgage. The borrower will be charged for each counseling session so persons can ask all the questions hey need to, to be properly informed. It is very important that the borrower is completely aware of what a reverse mortgage is, so they can protect themselves. Since reverse mortgages is a fairly new program you should be properly informed. Persons who are interested in getting a reverse mortgage holders can surf the internet and visit the HUD information website so they can get a list of certified reverse mortgage loaners. All reverse mortgage lenders must be approved by HUD, if you decide to obtain a reverse mortgage from a organization that is not authorized then your property might end up owing more than your home is actually valued at.
During the time when a person receives a reverse mortgage they cannot be asked to exit the property because they are still the deed owner and family members may still be able to get the property if a reverse mortgage owner dies as long as they can pay for the reverse mortgage however, this must be done within a year of the owner dying.
The fact that the mortgager still maintains ownership of the house, means that the borrower is still required to pay for the maintenance of the property. This land taxes, home insurance and general utility fees. If you fail to make payments on home insurance, taxes and basic utilities this can cause your home to depreciate.The borrower must maintain all the obligations of the reverse mortgage. Reverse mortgages usually come with many hidden fees expenses such as origination fees, closing cost, growing interest percentage and various other mortgage fees. These fees are determined by the mortgage company.
SHARE
