Reverse Mortgages For Seniors

Reverse Mortgages For Seniors
Reverse mortgage has become popular in​ America these days,​ these are special type of​ mortgage that helps an​ homeowner to​ convert his home equity into cash,​ this boost up the​ American older financial security by helping them to​ meet unexpected medical expenses,​ home improvement and many more .​
The homeowners should be 62 years and older who has already settled any mortgage they have already got it​ or​ has remaining small amount of​ mortgage balance are the​ eligible people to​ take up this Reverse mortgage by HUD’s.
Homeowners would be able to​ receive the​ payment in​ a​ lump sum or​ can receive on​ monthly basis for a​ fixed period of​ time or​ as​ long as​ they live in​ the​ house,​ this mortgage can be changed according to​ the​ circumstances of​ the​ homeowners,​ unlike other mortgages the​ HUD’s reverse mortgage for seniors do not require repayments from the​ borrowers as​ long as​ they live in​ that home,​ the​ lender will recover the​ principal amount along with the​ interest at​ the​ time of​ the​ house being sold out,​ and the​ balance amount will be paid to​ the​ house owner or​ her or​ his survivors,​ incase the​ amount received by selling the​ house is​ not sufficient to​ pay the​ amount that has been borrowed ,​ HUD will take up the​ responsibility to​ pay the​ shortage amount to​ the​ lender .​
The Federal Housing Administrations that is​ a​ part of​ HUD is​ responsible to​ collect the​ insurance premium from the​ borrowers for providing the​ coverage.

The amount of​ reverse mortgage for seniors will be decided based on​ the​ age,​ interest rate and the​ value of​ the​ house of​ the​ borrower,​ in​ this type of​ mortgage the​ older the​ borrower the​ greater the​ amount that is​ lent .​
For instance based on​ today’s rate of​ interest 9% approximately a​ 65 yrs old person can borrow 26% of​ the​ value of​ his home and 75 yrs old person could get 39% of​ the​ value of​ the​ home and 85 yrs old man get 56% of​ the​ value of​ the​ home.

To get this reverse mortgage from the​ HUD you​ need not present any income proof or​ show any kind of​ asset,​ and there is​ also no limitation for the​ value of​ the​ homes that is​ being qualified under HUD’s reverse mortgage .​
The home owners are charged 2% of​ the​ value of​ the​ home as​ up front fees plus one half percent of​ the​ balance loan amount every year and this amount can be usually paid by the​ lender and further charged in​ the​ principal amount borrowed by the​ home owner.

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