Reverse Mortgage Information Who Qualifies For Reverse Mortgages

Reverse Mortgage Information Who Qualifies For Reverse Mortgages

Reverse Mortgage Information - Who Qualifies For Reverse Mortgages
Reverse mortgages can be a​ great solution for seniors who wish to​ remain in​ their home but are having difficulty making their monthly payments and meeting other financial obligations .​
If you​ are over age 62 and own your own home,​ the​ bank will actually pay you​ money so you​ can stay in​ your home,​ rather than the​ other way around .​
It is​ important to​ collect as​ much reverse mortgage information as​ possible before deciding whether to​ take out the​ loan .​

Anyone is​ eligible for a​ reverse mortgage loan,​ even if​ they have no income .​
Your home must be a​ single family residence in​ a​ one to​ four unit dwelling,​ a​ condominium or​ some type of​ manufactured home .​
Cooperatives and most mobile homes are not eligible .​
The home must be at​ least one year old and you​ have to​ first meet with an​ authorized counselor .​

You can obtain the​ loan as​ a​ lump sum payment,​ a​ fixed monthly amount or​ as​ a​ line of​ credit that you​ use whenever you​ need it .​
The money can be used for just about any purpose .​
This can include paying property taxes or​ medical bills,​ home repairs and improvements,​ paying off credit cards or​ just daily living expenses .​
The amount of​ money you​ receive depends upon your age,​ the​ amount of​ equity in​ the​ home,​ its appraised value and current interest rates .​
The reverse mortgage loan does not have to​ be repaid until you​ sell the​ home,​ permanently move out,​ or​ pass away .​
Your loan could also become due if​ you​ allow the​ property to​ deteriorate,​ you​ fail to​ pay property taxes or​ hazard insurance,​ or​ if​ the​ last surviving borrower does not occupy the​ home for 12 months in​ a​ row due to​ illness .​

There are some fees involved with a​ reverse mortgage loan,​ similar to​ those you​ would incur with a​ regular mortgage .​
These include origination fees which cover the​ lenders operating expenses and are currently capped at​ the​ greater of​ $2,​000 or​ 2% of​ the​ maximum FHA loan limit .​
In addition you​ will be required to​ take out mortgage insurance and pay an​ appraisal fee which ranges between $300 - $400 .​
Other closing costs include fees for a​ credit report (usually under $20),​ flood certification,​ closing and title search,​ document preparation,​ recording,​ courier,​ pest inspection and a​ land survey .​
In addition,​ a​ monthly service set-aside fee of​ $30-35 per month will be charged .​

When you​ meet with your counselor,​ you​ should be able to​ obtain all the​ reverse mortgage information you​ require before you​ make your final decision .​
It will be nice to​ have the​ option of​ staying in​ your own home if​ that is​ what you​ desire.

You Might Also Like:

No comments:

Powered by Blogger.