Learn The Reverse Mortgages Main Senior Benefits

When a senior has paid his usual mortgage, which is now in the form of the home equity

, the reverse mortgages do it another way round. So a senior does not pay anything to the lender, but the lender will pay to him according to the schedule he has decided.

1. Who Can Qualify?

The qualification is very flexible. Everybody, who owns a home, where he has equity left and is at least 62, can qualify. The lender, which is normally a bank, is not interested about the credit information nor the income levels.

The reason is simple. The reverse mortgages are always taken against the equity of the home, so the home is the guarantee. And because nothing will be paid back monthly, it does not matter, what are the incomes. The loan capital, interests and all expenses will be paid back, when the loan will be closed and the home sold.

2. How Much You Can Get?

A wise guidance is, that do not take more than what you necessarily need. Generally speaking the amount depends on the age of the borrower, on the appraised value of the home and on the interest rate. The older the borrower, the more valuable the home and the lower the interest rate, the more he will get. However, there is a ceiling of $ 625.000.

3. How Many Borrowers Are Accepted?

Three is the maximum amount. Of course all borrowers must be in the title, i.e. owners and to fulfil the qualifications, i.e. to be at least 62. But they do not have to be relatives to each other, so all owner combinations are accepted.

4. Does The Home Ownership Change?

Some seniors seem to think, that the lender can get the ownership from the borrower. This is not true. The reverse mortgages are like whatever loans, which have certain guarantees. Only if a senior does not take care about the insurances and the property taxes, the lender can force to sell the property to be able to get his share.

5. Who Can Guide?

The Government has organized the guidance in a very good way. There is a national network of the federal counselors, who are experts as to this topic. They are not in the payrolls of the lenders, so they can recommend whatever solutions for the senior needs. A senior does wisely, if he will prepare the counselor meeting by writing down the questions.

by: Juhani Tontti

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