A guide to reverse mortgages
Reverse mortgage is a financial tool that helps homeowners above the age of 62 to gain surplus cash to meet their financial needs. For seniors who want to make use of their primary property to enhance their retirement income, a reverse mortgage is the best option as there are no monthly payments to be made. But those availing of this type of mortgage should understand how it works and the conditions that borrowers must fulfill.
- Continuing to live on the property that you own and mortgage, and maintaining it in a satisfactory liveable condition by attending to its upkeep is a prerequisite.
- Paying taxes and insurances for it is insisted upon till the end of the loan period.
- Delinquency and bankruptcy is frowned upon and can lead to non-qualification or cancellation of the loan, and cause seizure of the pledged property.
- Participation in free consumer information sessions conducted by the US HUD-approved home equity conversion mortgage counselors is recommended to understand the concept, advantages, and stipulations of reverse mortgages. These counselors ascertain if this loan is appropriate for your financial needs and the sessions help you understand how the loan operates. They also advise about other possible loan choices that are available, to help you make an informed decision.
Reverse mortgages enable borrowers to fund various expenses, and these tax-free loans are useful to those who have a fixed income post retirement and wish to build upon it.
Reverse mortgage loan calculators determine your eligibility and the amount you may qualify to receive. Being of considerable size and in an upmarket location, and depending on the equity of the home, your age (older home owners get more eligibility) and with lower interest rates, reverse mortgage loan amounts could be higher.
Simply fill information in online reverse mortgage calculators to get an estimation of the direct costs involved, the total income you may receive from these loans, the net principal limit, the amount of income that could be received as tenure and term payments both monthly and annually, all conveniently at the click of a button.
