4 Killer Reasons To Take Reverse Mortgages On House
The reverse mortgages on house are convenient, because the lender pays to you every month and you have not to do any monthly back payments.
1. Who Can Qualify?
This is one of the most convenient benefits. Everyone, who owns his home and is age 62 or older. The lender is not interested about your credit information nor your income, because the reverse mortgages on house will be paid back totally, when you sell the home, move away permanently or die. So until then your home equity is the guarantee against the loan, interests and other expenses.
2. You Can Determine, How You Want The Money.
The reverse mortgages on house work in that way, that the lender will pay you according to the plan, which you will decide, monthly, as a lump sum, as a credit line or as a combination of all these. And you will never pay any monthly payments back to the lender.
3. You Will Still Be The Owner.
Because the reverse mortgages on house are loans against the equity of your home, you will remain the owner, which means that you have to take care of the taxes, repairs, insurances and other owners liabilities. These duties will end, when you will permanently move away and the property will be sold.
4. The Mortgage Insurance Covers The Surprises About The Home Value.
The reverse mortgages on house are guaranteed in a way, that when you take the loan, you have to take a compulsory insurance. This is how the law says. This means, that if for some reason, the selling price of your home is lower than all the costs of the reverse mortgage loan, this insurance covers the difference. It will be never covered by selling some other equity of yours.
I am sure you got the point and understand how these reverse mortgages on house work. They really try to help the senior citizens to get more cash for their daily needs. It is fair, because these people have paid by themselves the home equities, which are now used.
And one more compulsory thing. Before you can take the reverse mortgage loan, you have to meet the counselor, who is accepted by the government. This will guarantee, that you get a lot of useful information, before you sign anything.
When you do this process correctly, you have to get lots of information about these reverse mortgages on house and to prepare a question list. In this way you can ask your own questions, when you will meet the counselor.
by: Juhani TonttiAbout the Author:Juhani Tontti, B.Sc., Marketing. The Internet Has Lots Of Information About Reverse Mortgage, The Reverse Mortgage For Home Purchase Is A Long Term Project. Visit: Reverse Mortgages On House