subject: Reverse Mortgage- How It Can Help Elders & Turn Equity Into Cash [print this page] After retirement, many homeowners may find that their low income is not sufficient to maintain the lifestyle to which they have become accustomed. Thousands of people have found that their social security benefits have been reduced and his pension had been exhausted or greatly reduced due to the U.S. economic struggles.
How can a homeowner continue to offer home mortgage and lifestyle without diminishing your savings? A high reverse mortgage may be the solution that the owner is looking for. How a senior reverse mortgage differs from other home loans?
A senior reverse mortgage is not your typical home loan. It was designed specifically for homeowners 62 years of age or older to help them finance their homes without having to overload your monthly budget. This financing is unique because it requires absolutely no monthly mortgage payment! A landlord can keep your home without worrying about the monthly mortgage payments. Homeowners can instead use the money they would spend each month on the mortgage and pay for major expenses or other leisure activities.
If an owner has enough equity in your home, a senior reverse mortgage can be used not only to eliminate monthly mortgage payments, but in turn that equity into cash. The money can be used as desired by the homeowner and he or she can choose how the funds are disbursed. The payment options include owners can choose monthly payments, a lump sum, a line of credit, or a custom option that is created to meet your specific needs. The type of payment option chosen will determine what interest rate the homeowner receives. The product of reverse mortgage a homeowner can be used in medical bills, to pay the debt or anything else!
In addition to age requirements are not very high many reverse mortgage requirements, making it easier to qualify for the loan, compared with other types of housing finance. Applicants must be in the title of the house and the home should be your primary residence, which means they reside there for at least six months a year. Unlike other types of loans for housing, this type of financing has no credit or income requirements because there are no monthly mortgage payments. Thus, if an owner has a less than perfect credit or a reduction of income, he or she can still qualify for great benefits that will allow him or her to maintain financial independence.
Most reverse mortgages are insured by the higher Federal Housing Administration, which works to protect homeowners from mortgage fraud when seeking this type of loan. One way is by requiring all applicants to participate in financial consulting with a financial counselor approved by HUD to ensure that they understand the borrowing requirements and possible consequences. After counseling, the owners must be duly informed about this financial product and should understand what is expected of them in connection with the loan.
Owners interested in learning more about reverse mortgages above should contact a loan specialist to learn how they can apply. This loan may be the answer they were looking for and allow them to enjoy their retirement years without the constant worry of making ends meet.
