The Basics Of Reverse Mortgages

The Basics Of Reverse Mortgages



The Basics of​ Reverse Mortgages
Reverse mortgages are loans against your home that require no repayment for as​ long as​ you​ live there. as​ opposed to​ regular mortgage loans,​ reverse mortgages have no income requirements and are based solely on​ the​ equity of​ your home or​ condo. There are no monthly payments to​ make as​ the​ mortgage is​ due only when the​ borrower is​ no longer living at​ the​ residence.
Seniors over the​ age of​ 62 are eligible for reverse mortgages in​ the​ US,​ provided they own their own single family dwelling. No health requirements need to​ be met,​ nor is​ there any loss of​ government benefits such Social Security and Medicare as​ a​ result of​ obtaining a​ reverse mortgage. Some benefits,​ however,​ such as​ Supplemental Security Income SSI and Medicaid can be reduced under specific circumstances. Tax liability for monies received through a​ reverse mortgage are a​ nonissue,​ as​ loan advancements are not taxed,​ although interest on​ the​ loan is​ consequently not tax deductible.
There are no income requirements to​ qualify for a​ reverse mortgage. you​ may be eligible for a​ reverse mortgage even if​ you​ still owe money on​ an existing mortgage. the​ reverse mortgage loan must be large enough reverse mortgage to​ pay off the​ existing loan entirely,​ however.
The benefits of​ a​ reverse mortgage are many,​ and include increased cash flow at​ a​ time when many are on​ a​ fixed income,​ putting the​ equity of​ your home to​ use and the​ ability to​ choose the​ method by which you​ are paid. Several installment options exist to​ help seniors structure their advances to​ fit their budgetary concerns and cash flow needs,​ affording them the​ ability to​ effectively plan for their immediate and long term financial future.
Many seniors may feel that borrowing against their home,​ especially later in​ life,​ is​ a​ risky endeavor. Reverse mortgages hold little if​ any risk for the​ borrower,​ however,​ as​ seniors are not borrowing against future income. Since keeping up with monthly payments is​ not an issue with a​ reverse mortgage,​ the​ reality is​ that many who choose this type of​ mortgage are able to​ enjoy what they have worked all their lives for in​ their post retirement years.




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