subject: The Basics Of Invert Mortgages [print this page] Reverse mortgages are loans towards your home that need no repayment for as long as you live there. As opposed to regular home loan loans, reverse mortgages have no income requirements and are based solely about the equity of your house or condo. You will find no monthly payments to make as the mortgage is due only when the borrower is no longer living at the residence.
Seniors over the age of 62 are eligible for reverse mortgages within the US, provided they own their personal single family dwelling. No health needs require to be met, nor is there any loss of government advantages such Social Security and Medicare as a result of obtaining a inverted home loan. Some advantages, however, such as Supplemental Security Earnings (SSI) and Medicaid could be reduced under particular circumstances. Tax liability for monies received through a reverse home loan are a non-issue, as loan advancements are not taxed, although interest about the loan is consequently not tax deductible.
There are no income requirements to qualify for a inverted home loan. You might be eligible for a invert mortgage even if you still owe cash on an existing mortgage. The invert mortgage loan must be big sufficient inverted mortgage to pay off the existing loan entirely, however.
The advantages of a inverted home loan are numerous, and include increased cash flow at a time when many are on a fixed income, putting the equity of your home to use and also the ability to select the technique by which you are paid. Several installment options exist to assist seniors structure their advances to fit their budgetary concerns and money flow needs, affording them the ability to effectively plan for their immediate and lengthy term financial future.
Numerous seniors may feel that borrowing against their home, especially later in life, is a risky endeavor. Inverted mortgages hold little if any risk for the borrower, however, as seniors are not borrowing against future income. Since keeping up with monthly payments is not an issue with a reverse mortgage, the reality is that many who select this kind of home loan are able to appreciate what they have worked all their lives for in their post retirement years.
by: Mika Lindt
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