Do You Know About Reverse Mortgage Refinance?
What is reverse mortgage? What is reverse mortgage refinance
? These are just a couple of questions commonly asked by senior citizens throughout the United States and Canada in the past years. Reverse mortgage can be easily defined as that can only be availed by senior citizens. This mortgage is more often than not used with regard to home equity of the senior who is the debtor of the said mortgage. In this type of loan, the senior who happens to be the homeowner of the house in question need not pay the monthly interest included in the amortization. All of the interests per month are collected and subsequently added as a lien on the home or property.
A lien is a type or form of security interest or right over a real property that can be used by the creditor in order to secure payment from the debtor. As such, in reverse mortgage, a senior individual will be able to obtain the needed money without having to pay anything for the interest. The latter, however, will be added as a form of right of the creditor or lender of the money to the property of the debtor or borrower. If ever the debtor fails to pay the monthly amortization then the creditor can exercise the security interest or right in order to get paid. The senior citizen debtor will thus have an equal footing with the creditor since the non-payment of interest will offset the lien placed upon the property.
There are several requirements for reverse mortgage. Firstly, the debtor must be at least 62 years old before the signing of the loan contract. Secondly, the debtor or borrower must not have any subsisting mortgage or loan in order to qualify for this reverse type of mortgage. Thirdly, the borrower must have undergone counseling from a third party financial expert in order to know the basics of this type of mortgage. Lastly, the appraised value of the home or property must also be submitted in order to determine the maximum value of the loan that can be lent to the borrower by the creditor.
Reverse mortgage refinance on the other hand refers to the availing or getting of a new loan or mortgage in order to pay off any existing reverse mortgage. The money that will be borrowed by the borrower or debtor in the refinance must be higher than the amount of the reverse mortgage. As such, the senior citizen who is the subject of the refinance will be able to pay in full the amount left to be paid for the reverse mortgage. If you are having trouble in paying your reverse mortgage then this is the right method for you to make use of. You will be able to obtain the loan from this refinance in as fast as 3 up to 5 banking days after your application has been processed and approved. Just make sure that you state the intention of refinancing on your loan application in order for it to be processed easily.
by: John Andrew
Why Singapore For Offshore Banking? What Is The Decisive Factor For Mortgage Rates? The Best Banks For A Florida Refinance Will Give You A Lot More Than Mere Loans Lawsuit Loans No worries loans-Vanish all your financial worries How to Get the PayDay Loans Do You Seriously Need Payday Loans - Here Are Choices Understanding The Process: How To Refinance A Current Mortgage Payday Loans for the Unemployed- Get Loan and Get Tension Free Regarding Urgencies Same Day Loans: Money Helps To Come Out From Your Unplanned Expense Cheque book payday loans- Get out of superfluous economic setbacks Unsecured Loans-Enjoy easy funds and get relieve from financial worries Easy Loans: Finance on easy norms