1Listing: Reverse Mortgage

Reverse Mortgage

by James Kitchens

Reverse mortgage FAQ can not be totally comprehensive but here are some of the things that need to be known when if reverse mortgages are the best way to go. A reverse mortgage is a loan that is based on the equity in a home and has no payment due until the house is sold or the owner moves out permanently. It can provide a form of tax free monthly income and/or a line of credit with no income or credit qualifications to meet and no monthly payments to make.

Qualifying for this type of mortgage requires the applicant to be sixty two years older or older, living in this home as the primary residence and having a substantial amount of equity. The money gained can be used for anything the home owner desires from making property improvements to going on the trip of a lifetime and anything in between. The amount of money available is based on the homes equity, age of the applicant(s), number of home owners and current interest rates.
The money received can be issued in the form of a monthly supplement, a cash lump sum, an available credit line or any combination of the three for as long as the home owner dwells on the property or for a set amount of time. The interest rates for the loan change on either a monthly or annual basis and are directly tied to the market indexes. These rates only apply to the money actually taken out.
The closing costs involved are very much like those in a first mortgage and can be rolled into the loan. The person or persons who apply for reverse home mortgages continue to own their home. The loan is not due to paid until the signees have permanently vacated the property. Don't start the process until all reverse mortgage FAQ are answered.