A reverse mortgage allows a senior home owner to convert their home equity to cash. These loans may be availed by senior home owners having equity in their homes. If an individual is a senior citizen and does not intend on moving out of his or her home for some time, a reversed mortgage may be an option worth considering. Apart from being 62 years of age or older, the borrower must be the absolute owner of their house in order to qualify for a reverse mortgage. Some very important questions must come in your mind when you talk about reverse mortgage; you must be thinking that how a reverse mortgage works and why we choose reverse mortgage loan. As many people get older they find a lot of their equity is tied up in their homes. While they look rich on paper it is of little use if they can't access that wealth. An expensive home doesn't pay for the groceries each week or the costly maintenance on that expensive home. Many people in this situation begin to look at how they can turn their home into some cash but don't want to sell it. The option of a Reverse Mortgage can be very useful so how it is very useful this question people must want to know how Reverse mortgage work? It’s basically a situation where a contract is drawn up to give you money, secured against your un-mortgaged house. The borrowed attracts interest and will be added to the amount owing when the contract comes to be settled. So, there are also no repayments to be made throughout the life of the reverse mortgage. The actual amount able to be borrowed will vary based on your current age. The older you are the larger the percentage of the house value you will be able to borrow. So, reverse mortgage is very useful and helpful and you can choose to take your money in a lump sum, as a number of payments (or an annuity) during the life of the contract, or draw down the funds as you require them.
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