subject: Reverse Mortgages – Money For The Cash Poor But Equity Rich Senior [print this page] Reverse Mortgages Money For The Cash Poor But Equity Rich Senior
The idea of the reverse mortgages is to arrange more disposable cash for the seniors, who have met sudden extra expenses or who want to use a bigger sum of money for some special purpose, like for a medical care. The money comes from the equity of the home, which is used as a guarantee for the loan. The reverse mortgages have no monthly payments and if a senior has an usual mortgage left, he has to pay it away with the reverse loan. This will release even more cash for the daily use.
1. A Senior Will Get The Loan Even With Bad Credit Score Or Without Income.
The reverse mortgages have flexible qualification terms. They are targeted to the seniors, who needs more money, but cannot loan or earn more, but who have an equity in their home. This means, that the credit score nor the income information is needed, because the reverse loan is always taken against the home.
2. When Is The Payment Time?
Nothing will be paid back on a monthly basis. The loan capital, interests and the costs will be paid back when a borrower will sell the home, move away or die. Then the home will be sold and the loan costs will be deducted from the selling price. The left sum belongs to the borrower or to his heirs. It is important to understand, that a borrower cannot owe more than the value of the home.
3. The Obligatory Mortgage Insurance.
Think, if the home selling price would not cover the whole amount of the loan costs. If this would happen, then the mortgage insurance would come into the picture. A borrower has to take the insurance, which will protect him and the lender.
4. The Usage Examples.
The reverse mortgages can be used for many purposes. The seniors can pay away the usual mortgages, credit card debts, or other periodic payments to reduce the monthly expenses and to get more disposable monthly cash.
5. The Reverse Mortgages Are Tax Free.
The seniors, who are cash poor but equity rich can enjoy full lives and pay away a lot of their regular monthly payments with the reverse loans. They have no influence on the Government benefits, they protect the homes from default and foreclosures and can reduce the stress substantially. The sales of the reverse mortgages is flying thanks to the changed attitudes. Today the seniors can also enjoy about their lives and use the money they have earned during their active years.
