Reverse Mortgage Loan For The House Rich But Cash Poor

Reverse Mortgage Loan For the​ Houserich But Cashpoor
Do you​ need to​ finance a​ home improvement? Pay off a​ current mortgage? Supplement your retirement income? Take care of​ healthcare expenses? if​ so,​ a​ reverse mortgage lender will do wonders for you. With a​ reverse mortgage,​ you​ can turn the​ value of​ your home into cash without having to​ repay your loan each month.
When is​ it​ Repaid?
A reverse mortgage is​ a​ loan taken out against your home. the​ best thing about it​ is​ that you​ dont have to​ pay it​ back for as​ long as​ you​ live there. Reverse mortgage lenders only collect repayment when you
die
sell your home
or​ move to​ another house and live there permanently
What Types Are Available?
There are three basic types of​ reverse mortgages,​ and they are classified according to​ who the​ reverse mortgage lender is.
1. Singlepurpose reverse mortgage
This is​ offered by nonprofit organizations,​ state governments,​ and local agencies.
2. Federallyinsured reverse mortgage
This is​ also know as​ HECM,​ or​ Home Equity Conversion Mortgage. it​ is​ backed by the​ U. S Department of​ Housing and Urban Development,​ or​ HUD.
3. Proprietary reverse mortgage
The reverse mortgage lender of​ this type of​ mortgage is​ a​ private company.
Are There Other Differences Between Types?
The three types of​ reverse mortgages also differ in​ other aspects,​ particularly in​ their terms and manner of​ use.
1. Singlepurpose reverse mortgage
This has very low costs,​ and you​ can only qualify for one if​ you​ have a​ low to​ moderate income. There are two drawbacks to​ this type of​ reverse mortgage. First,​ it​ is​ not available everywhere. Second,​ it​ can only be used for the​ purpose specified by the​ government or​ by the​ reverse mortgage lender. Such a​ purpose may range from paying for home repairs to​ paying off property taxes.
2. HECM and proprietary reverse mortgage
These tend to​ be costlier than the​ other two home loans. in​ fact,​ the​ upfront charges could be very high. These two types of​ reverse mortgage,​ however,​ are not without their advantages. For one,​ many reverse mortgage lenders offer them. For another,​ HECM and proprietary reverse mortgage lenders do not ask for proof of​ income or​ a​ bill of​ good health. Finally,​ these two mortgages may be used for any purpose.
How Much Can you​ Borrow?
In singlepurpose reverse mortgage,​ the​ amount is​ set according to​ how much you​ need.
In a​ proprietary reverse mortgage or​ HECM,​ the​ reverse mortgage lenders offer amounts depending upon a​ combination of​ factors,​ such as
the​ type of​ reverse mortgage you​ choose
present interest rates
the​ appraised value of​ your home
your address
your age
Reverse mortgage lenders put a​ high premium on​ age. as​ a​ rule of​ thumb,​ the​ older you​ are,​ the​ more valuable your home is. Secondly,​ the​ less mortgage you​ have left to​ pay,​ the​ more money you​ can get.
How Will you​ Get What you​ Borrow?
A reverse mortgage lender gives you​ cash in​ several ways
1. all at​ once,​ in​ a​ single chunk of​ cash
2. as​ a​ credit line,​ wherein you​ can decide when and how much of​ the​ money available is​ paid to​ you
3. on​ a​ regular basis,​ with the​ amount and schedule of​ payment fixed
4. as​ a​ combination of​ the​ three previously mentioned payment methods
How Do you​ Qualify?
To be eligible for a​ reverse mortgage,​ you​ must be at​ least 62 years old and must live in​ your own house.
If you​ are cashstrapped,​ a​ reverse mortgage may just be the​ answer you​ need. Be sure to​ research about this type of​ loan first,​ though. in​ loans,​ as​ in​ all other things,​ it​ is​ better to​ be safe than sorry.
Reverse Mortgage Loan For The House Rich But Cash Poor Reverse Mortgage Loan For The House Rich But Cash Poor Reviewed by Henda Yesti on June 26, 2018 Rating: 5

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