Friday, June 20, 2008
For many seniors retirement is a mixed blessing. On one hand it is time to enjoy family and friends, and enjoy living to the fullest. All too often people find themselves in need of extra income just to keep up with rising costs. A reverse mortgage can help many homeowners who are 62 or older live in their home comfortably by turning the equity in their home into extra cash or income.
Some typical questions regarding a reverse mortgage may be:
What are the benefits of a reverse mortgage?
A reverse mortgage provides easy access to the equity senior homeowners owners have in their home. There is no income or credit qualification and best of all no monthly mortgage payments are required during the life of the loan.
What are the borrower qualifications?
The borrower must be 62 or older and of course, own a home! A reverse mortgage allows a borrower to live in their home for as long as they use the home as a primary residence.
How much money can a borrower receive?
The amount a senior homeowner is eligible for depends on their age, the value of the home, current interest rates and the specific reverse mortgage product selected. Generally speaking, the older a borrower is, the greater the benefit (i.e. more money!) available.
How can the money be used?
Fund home repairs, pay off an existing mortgage, pay for medical expenses, purchase long-term care insurance, and establish a resource to help grandchildren and loved ones, go on vacation! The money can be used any way the borrower wishes!
Does the bank own my home?
No, this is a very common misconception; a reverse mortgage is merely a loan on the property that can be repaid at anytime with no prepayment penalty.
Will my children be against the idea?
No, experience has shown that many adult children see a reverse mortgage as a good decision for their parents. It provides the senior with independence and allows them to age in the home they love and raised their family.
For more straight answers to your questions, send me an email at firstname.lastname@example.org. Posted by The Reverse Expert at 12:14 PM 0 comments