There has been a great deal of media attention offered to reverse mortgages today and this has left people wondering, what exactly a reverse mortgage is and how it can help them.
As you may or may not know, the target audiences for reverse mortgages are those who are ready to retire or aging home owners in particular.
So let's get right to it; a reverse mortgage is a special type of home loan that allows home owners to withdraw a certain amount of their home equity in cash.
Seniors are most commonly qualified for this type of loan and they are the ones who can benefit the most from this unique home equity loan.
Now that you know what a reverse mortgage is and who qualifies you may be wondering what to do if you still owe money on your current mortgage if you can still qualify for the reverse mortgage.
The answer to this question is yes.
What will happen is you will use however much of your new home equity loan or reverse mortgage to pay off your initial mortgage and you will be given whatever funds are left in one lump sum, or in monthly payments or even as a line of credit depending on which option you prefer.
An additional bonus to this loan is that the money is tax-free and you as the borrower have no restrictions when it comes to what you want to use this money for; making it perfect to add to a retiree's investment portfolio.
Another great benefit for seniors is that you will not have to make another mortgage payment for the rest of your life! How the reverse mortgage works is it defers any payment from the borrower until after they die, sell their home or move outside their home for over a year.
This means that if you have no intention of moving from your home you are mortgage payment free for the rest of your life and you get to utilize the cash from your home to make your retirement life that much more enjoyable.
To clarify if there are two borrowers, a couple, the payment is not required until both borrowers have died.
Now let's talk about how to qualify for this great investment opportunity.
First, applicants must be at least Sixty two years old and have no outstanding debts to the government.
Next, you must have enough equity within your home that the funds you receive from it are enough to cover your existing mortgage.
Of course the equity within your home will be determined by your age and the current property value of the home.
Even if you are not of retirement age yet, there is no time like the present to investigate this reverse mortgage option.
The benefits of this home equity loan can really help improve the quality of living within your retirement years.
Although you will still have to pay property taxes and insurance the mortgage payments go out the window and this provides you with more cash to work with.
As you may or may not know, the target audiences for reverse mortgages are those who are ready to retire or aging home owners in particular.
So let's get right to it; a reverse mortgage is a special type of home loan that allows home owners to withdraw a certain amount of their home equity in cash.
Seniors are most commonly qualified for this type of loan and they are the ones who can benefit the most from this unique home equity loan.
Now that you know what a reverse mortgage is and who qualifies you may be wondering what to do if you still owe money on your current mortgage if you can still qualify for the reverse mortgage.
The answer to this question is yes.
What will happen is you will use however much of your new home equity loan or reverse mortgage to pay off your initial mortgage and you will be given whatever funds are left in one lump sum, or in monthly payments or even as a line of credit depending on which option you prefer.
An additional bonus to this loan is that the money is tax-free and you as the borrower have no restrictions when it comes to what you want to use this money for; making it perfect to add to a retiree's investment portfolio.
Another great benefit for seniors is that you will not have to make another mortgage payment for the rest of your life! How the reverse mortgage works is it defers any payment from the borrower until after they die, sell their home or move outside their home for over a year.
This means that if you have no intention of moving from your home you are mortgage payment free for the rest of your life and you get to utilize the cash from your home to make your retirement life that much more enjoyable.
To clarify if there are two borrowers, a couple, the payment is not required until both borrowers have died.
Now let's talk about how to qualify for this great investment opportunity.
First, applicants must be at least Sixty two years old and have no outstanding debts to the government.
Next, you must have enough equity within your home that the funds you receive from it are enough to cover your existing mortgage.
Of course the equity within your home will be determined by your age and the current property value of the home.
Even if you are not of retirement age yet, there is no time like the present to investigate this reverse mortgage option.
The benefits of this home equity loan can really help improve the quality of living within your retirement years.
Although you will still have to pay property taxes and insurance the mortgage payments go out the window and this provides you with more cash to work with.
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