How Senior Reverse Mortgage Can Help You
The usual situation, when the senior reverse mortgage is needed are
, when the senior will meet a sudden increase in his medical bills or the home repair and needs more money, but he is not capable to borrow more.
1. How Do You Qualify?
There are two basic requirements. You must own a home, where you have equity left and to be at least 62. Your incomes, your credit score nor your health information are not asked. The senior reverse mortgage is always taken against the home, i.e. the appraised value of the home is a guarantee.
You can take your spouse with as a borrower or you can take other two persons, but all must fulfil the qualification requirements. They have not to be relatives to each other, but all must be the owners of the home and live there most of the year.
2. How Much Can You Get?
The rules vary from state to state, but a national maximum is $ 625.000. The loan sum depends on the interest rates, on the age of the borrower and on the height of the appraised value. We can say, that the older you are, the lower the interest rate and the higher the home value, the more you will get.
3. How The Lender Will Pay You?
A senior reverse mortgage works in that way, that the borrower says, how the lender will pay to him. The payment schedule depends on the purpose for which the loan will be used. The usual alternatives are the lump sum, the monthly payments, the credit line or the combination of all of these.
4. Who Can Guide You?
The seniors can get a free and high level counseling from the Federal Counselors, who are located in all states. The counselor meeting is the more effective the better a senior has prepared in advance with a lot of questions. The counselor meeting is compulsory.
5. When Is The Back Payment Time?
When the target is to arrange more cash money to a senior, nothing will be paid back on a monthly basis. The loan capital, the interests and all the costs will be paid back, when the last borrower will move away, sell the house or die. At this time the home will be sold and the loan costs will be paid from the selling price of the home. The borrower will never owe more than the value of the home, i.e. his other assets will not be used to pay the reverse loan.
by: Juhani Tontti
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