Is A Reverse Mortgage The Right Option For You

Is A Reverse Mortgage The Right Option For You

Is a​ Reverse Mortgage the​ Right Option For You?
Reverse mortgages are designed to​ provide those who are retired,​ or​ near retirement with a​ way to​ keep on​ getting an​ income,​ or​ money to​ meet other expenses as​ they grow older .​
While it​ may not be the​ way for everyone,​ it​ certainly is​ a​ valid option for many .​
Here are some things you​ need to​ know about reverse mortgages to​ help decide if​ one should be in​ your near future.
What is​ It For?
The purpose of​ a​ reverse mortgage is​ to​ provide some income so that a​ person 62 and older can be able to​ continue at​ a​ higher level of​ living than what social security alone could do .​
This is​ especially important because of​ the​ way that social security and the​ economy is​ headed.
Where Does the​ Money Come From?
The money comes from the​ equity that is​ built up in​ the​ house over the​ years .​
This means that the​ more equity there is,​ the​ greater the​ payments could be .​
The amount of​ money that is​ still owed on​ any outstanding mortgages is​ paid off immediately,​ and payments are based on​ the​ balance.
What Are the​ Qualifications?
A reverse mortgage is​ for any homeowner that is​ aged 62 or​ older .​
They must be a​ homeowner and have some equity in​ the​ home .​
There are absolutely no conditions as​ far as​ amount of​ income needed since you​ actually make no payments to​ them .​
This means anyone can qualify.
What Are the​ Terms?
As long as​ the​ named individual lives in​ the​ house,​ no payment needs to​ be made .​
An individual can also put their spouse or​ another named person onto the​ mortgage,​ so that it​ will not need to​ be sold to​ make repayment until the​ house is​ no longer needed.
How is​ the​ Money Received?
The way that you​ receive the​ money is​ largely left up to​ your choice .​
This is​ because it​ is​ your money and you​ are free to​ use it​ as​ you​ wish .​
You can get a​ lump sum - if​ you​ want,​ or​ one of​ several other options .​
There is​ the​ option of​ getting monthly payments,​ or​ monthly payments over a​ specified period of​ time,​ and a​ line of​ credit is​ possible,​ too .​
You can also get a​ combination of​ any of​ these,​ too.
Is the​ Estate Lost?
You are able to​ keep your estate when the​ home is​ sold .​
Profits can be made from the​ sale
if the​ home sells for more than was paid out and applied to​ the​ estate.
What Charges May Apply?
Just like most mortgages,​ a​ reverse mortgage has most of​ the​ typical fees that apply to​ any mortgage .​
There are closing costs and service fees that will probably bring it​ up to​ somewhere between five to​ seven thousand dollars.
You want to​ take the​ necessary time to​ look over all the​ details when you​ start thinking about getting a​ reverse mortgage on​ your home .​
Federal reverse mortgages require professional counseling in​ order to​ help you​ understand all the​ issues and help you​ to​ be sure of​ your next decision to​ get one .​
Compare several offers in​ order to​ be sure you​ are getting the​ best deal.

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