The 5 Reverse Mortgage Loan Basic Features
First, the qualification has been done easy. All seniors, who are 62 or over and own a home, where they have equity left, will qualify. Also almost all home types are accepted. If a senior has usual mortgage still left, he has to pay that away with the reverse mortgage loan. Think how much this alone will bring new disposable money every month.
1. If I Do Not Pay, What Are My Responsibilities?
The system with the reverse mortgage loan goes in that way, that the borrower, or borrowers, will remain as owners, so their names will stay in the title. The home will be the guarantee of the loan, so the lender is interested that a borrower will keep the property in good shape.
Here is the main responsibility the borrower will have. He has to keep the property in a good shape and to pay the insurances and the property taxes. The borrower will enjoy about the home price increases, which are the higher the better is the condition of the property.
2. How Much Can I Get?
There is the maximum loan sum, which is $ 625.000. The sum of the reverse mortgage loan depends on three factors. The first is the age of the borrower, the second is the interest rate level and the third is the appraised value of the home. The older you are, the lower is the interest rate and the higher the appraised home value, the more you will get.
3. How Does The Lender Pay?
Does it sound odd, that the bank will pay to you? But that is exactly true. Actually you can dictate, how you want them to pay. The alternatives are the lump sum, the monthly payments, the credit line or the combination of these all.
4. When The Loan Will Be Due?
As said all the costs will be paid from the reverse mortgage loan sum, even the upfront costs. The loan will be closed, when the last borrower will move away, sell the home or die. Then the home will be sold and the selling price will be used to pay away the reverse loan costs, including the interest rates.
5. Who Can Guide Me?
Because the target group are seniors age 62 and over, the Government built a national network of the counselors with the only task is to guide the seniors about their financial needs. These people are experts to answer to all questions and to recommend also other products than the reverse mortgages.
by: Juhani Tontti
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