How Does the Reverse Mortgage Process Work?
A reverse mortgage can be a useful tool for many current home owners. It can give you money when you need it most in your later years of life. If you have been searching for a way to supplement your retirement or gain money for a much needed expense, then this may be the ideal solution for you. The information below will provide you with a comprehensive overview of the process and will help to give you an idea of whether it will work for you.
Who Qualifies for a Reverse Mortgage?
To qualify for this type of mortgage program, you need to meet only two criteria, and you will not be subjected to credit approval, income verification or any of the other cumbersome activities of a traditional mortgage. You must be at least 62 years old and have a considerable amount of equity in your home in order to qualify for this program. If you do not meet these two criteria then it is not for you.
How Does it Work?
Unlike a traditional mortgage a reverse one pays you instead of you making payments to the bank. The amount you receive will vary according to the amount of equity that you have in your home. You can choose to receive your payment in four various ways, through a lump sum, in monthly payments, as a line of credit, or any variation of the above methods. You will have a closing just as you did with a traditional mortgage, and some closing costs will be required on your part.
Will They Take Your Home?
No, the bank will never take your home in a reverse mortgage without first giving you or your family the options of buying it back. You are not required to make any payments on the loan associated with a reverse mortgage until you die or no longer occupy the home. At this time, you or your surviving family can sell your home and keep what is left over after paying off the loan. If there is no equity left in the home or a negative amount is owed to the bank, then they take the loss and the profits from the home's sale. However, once you move or pass on, your family can choose to pay off the loan and keep the home if they choose.
A reverse home mortgage can be an invaluable supplement for those with a low pension or only social security payments during retirement. You can get a lump sum for an emergency, or just enjoy doing what you have always wanted to in your golden years. Review all of the information above, and you should have a better idea of whether this type of program would work for you.
Learn whether a reverse mortgage, or another resource is right for you at http://www.reversemortgageprogram.info
Article Source: http://EzineArticles.com/?expert=Scott_Burton
Who Qualifies for a Reverse Mortgage?
To qualify for this type of mortgage program, you need to meet only two criteria, and you will not be subjected to credit approval, income verification or any of the other cumbersome activities of a traditional mortgage. You must be at least 62 years old and have a considerable amount of equity in your home in order to qualify for this program. If you do not meet these two criteria then it is not for you.
How Does it Work?
Unlike a traditional mortgage a reverse one pays you instead of you making payments to the bank. The amount you receive will vary according to the amount of equity that you have in your home. You can choose to receive your payment in four various ways, through a lump sum, in monthly payments, as a line of credit, or any variation of the above methods. You will have a closing just as you did with a traditional mortgage, and some closing costs will be required on your part.
Will They Take Your Home?
No, the bank will never take your home in a reverse mortgage without first giving you or your family the options of buying it back. You are not required to make any payments on the loan associated with a reverse mortgage until you die or no longer occupy the home. At this time, you or your surviving family can sell your home and keep what is left over after paying off the loan. If there is no equity left in the home or a negative amount is owed to the bank, then they take the loss and the profits from the home's sale. However, once you move or pass on, your family can choose to pay off the loan and keep the home if they choose.
A reverse home mortgage can be an invaluable supplement for those with a low pension or only social security payments during retirement. You can get a lump sum for an emergency, or just enjoy doing what you have always wanted to in your golden years. Review all of the information above, and you should have a better idea of whether this type of program would work for you.
Learn whether a reverse mortgage, or another resource is right for you at http://www.reversemortgageprogram.info
Article Source: http://EzineArticles.com/?expert=Scott_Burton
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