If you are thinking about a reverse mortgage; it is important to have some vital information about the process. The reverse mortgage can be used to help you access some of the equity in your home. Some of the main areas where people use this reverse mortgage is when paying medical bills, supplementing social security or even to improve the home and many others.
The information about the mortgage is vital when you are making your decision whether it is fit for you. The first step is to know what it is before you decide whether it is what you want. A a reverse mortgage is a type of loan that you get on top of the existing home mortgage. The beauty of the reverse mortgage is that you do have to start repaying until you stop living in the same house or you fail to repay the original mortgage.
The other question you may want to ask is who qualifies for such a loan? The first thing is to be a homeowner and one who is sixty-two years of age and above. You should have minimal amount of mortgage remaining or be a homeowner outright. The other requirements are that you must be living in the house, the balance should be low such that is can be settled with the reverse loan, and also you must show evidence of income that will enable you to pay the new loan.
For you to qualify for this kind of loan is not a must that you used insured mortgage to purchase the home. Another thing you may be asking yourself s whether your home can qualify for this kind of mortgage. You need to be a single family occupier of the home for you to qualify. Are you asking yourself the different between a reverse mortgage loan and a home equity loan.
With equity loan, the borrower is required to pay both the principal and the interest every month. The payment also includes taxes, and insurance premiums. If you have to sell your house, you must be prepared to pay all the mortgage at the point of selling. That means you cannot sell the house and transfer ownership before the loan is fully repaid. A person selling the home whether spouse or child, will have to pay the loan first and the remaining amount is what they will have for their use. Many factors that can influence the amount that you need to borrow. One of the elements is the age of the borrower. The no eligible spouse is another factor that can affect the amount.