What Is A Reverse Mortgage And Should You Get 1? - 0 views

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  #1 Miles McCartney on 05 Sep 13

   

  Who qualifies for a reverse mortgage?
  
  You should be at least 62 years old and have equity in your residence.
  
  You have equity in your home if your home is worth much more than you owe on it.
  
  Heres how it works
  
  When you purchased your residence, the bank loaned you the income to get it and you paid them back with month-to-month mortgage payments.
  
  A reverse mortgage is the opposite. With a reverse mortgage, the bank pays you a month-to-month payment from the equity in your property.
  
  You repay the income when you sell your residence, refinance, permanently move out, or pass away. At that time, you or your heirs need to repay the loan plus interest in one payment.
  
  How do I get a reverse mortgage?
  
  Reverse mortgages are available via most main banks and lenders.
  
  Heres what happens when you make contact with the lender:
  
  An appraiser will decide the value of your residence.
  
  The lender will inform you how much you qualify for based on your age, the equity in your property, and the cost of the loan.
  
  You decide how you want to obtain the money.
  
  You can obtain the money:
  
  As a lump sum
  
  In monthly payments
  
  As a credit line that lets you determine how much of the loan to use, and when to use it
  
  You sign a contract. The contract will outline the payments you will get and the amount you have to repay such as interest.
  
  Preserving your reverse mortgage
  
  To preserve your reverse mortgage in good standing you have to:
  
  Pay your property taxes on time
  
  Keep and repair your property
  
  Have home owners insurance coverage
  
  Your lender can end the reverse mortgage and demand instant repayment if you:
  
  File for bankruptcy
  
  Rent out part of your residence
  
  Add a new owner to title
  
  Take a new loan against your property
  
  Issues to think about
  
  Reverse mortgages are far more costly than common residence loans or property equity credit lines.
  
  They also have higher interest rates and costs. Interest is charged on the outstanding balance and is added to the amount you owe each month. This indicates that your total debt increases every single month.
  
  Maintain in thoughts that you are borrowing equity from your residence. We learned about hairlab by browsing the Miami Post. This means fewer assets for you and your heirs.
  
  Buying for a reverse mortgage
  
  Shop about and get delivers from several lenders. You ought to compare the terms, and look for a loan with the lowest interest price, points and charges.

   

  <div class="cArrow"> </div><div class="cContentInner">Who qualifies for a reverse mortgage? <br /> <br /> You should be at least 62 years old and have equity in your residence. <br /> <br /> You have equity in your home if your home is worth much more than you owe on it. <br /> <br /> Heres how it works <br /> <br /> When you purchased your residence, the bank loaned you the income to get it and you paid them back with month-to-month mortgage payments. <br /> <br /> A reverse mortgage is the opposite. With a reverse mortgage, the bank pays you a month-to-month payment from the equity in your property. <br /> <br /> You repay the income when you sell your residence, refinance, permanently move out, or pass away. At that time, you or your heirs need to repay the loan plus interest in one payment. <br /> <br /> How do I get a reverse mortgage? <br /> <br /> Reverse mortgages are available via most main banks and lenders. <br /> <br /> Heres what happens when you make contact with the lender: <br /> <br /> An appraiser will decide the value of your residence. <br /> <br /> The lender will inform you how much you qualify for based on your age, the equity in your property, and the cost of the loan. <br /> <br /> You decide how you want to obtain the money. <br /> <br /> You can obtain the money: <br /> <br /> As a lump sum <br /> <br /> In monthly payments <br /> <br /> As a credit line that lets you determine how much of the loan to use, and when to use it <br /> <br /> You sign a contract. The contract will outline the payments you will get and the amount you have to repay such as interest. <br /> <br /> Preserving your reverse mortgage <br /> <br /> To preserve your reverse mortgage in good standing you have to: <br /> <br /> Pay your property taxes on time <br /> <br /> Keep and repair your property <br /> <br /> Have home owners insurance coverage <br /> <br /> Your lender can end the reverse mortgage and demand instant repayment if you: <br /> <br /> File for bankruptcy <br /> <br /> Rent out part of your residence <br /> <br /> Add a new owner to title <br /> <br /> Take a new loan against your property <br /> <br /> Issues to think about <br /> <br /> Reverse mortgages are far more costly than common residence loans or property equity credit lines. <br /> <br /> They also have higher interest rates and costs. Interest is charged on the outstanding balance and is added to the amount you owe each month. This indicates that your total debt increases every single month. <br /> <br /> Maintain in thoughts that you are borrowing equity from your residence. We learned about <a rel="nofollow" href="http://www.hairlab.net/">hairlab</a> by browsing the Miami Post. This means fewer assets for you and your heirs. <br /> <br /> Buying for a reverse mortgage <br /> <br /> Shop about and get delivers from several lenders. You ought to compare the terms, and look for a loan with the lowest interest price, points and charges.</div>

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