How Does a Reverse Mortgage Work


Posted March 31, 2015 by hardley12

Elder people who are looking for money so they can finance the improvement of their home or to pay for their healthcare expenses or perhaps ..

 
Elder people who are looking for money so they can finance the improvement of their home or to pay for their healthcare expenses or perhaps so they can have an additional income for their income can consider a popular type of mortgage called reverse mortgage.

Reverse mortgage works by allowing a homeowner to borrow a home equity – that is to loan money based on the value of their home. What makes it different from the ordinary mortgage is that in reverse mortgage, the borrower does not need to repay the loan periodically.

In this type of mortgage, the borrower can loan for money and repay the mortgage in the time that they die or when they decided to sell the house. Typically, the house is sold at the time that the borrower dies, but if the borrower has an heir that can repay the loan, then the house no longer has to be sold.

There are other ways of payments for reverse mortgage aside from paying for it when the borrower dies. Aside from repaying the loan with a large sum of sum of money from the proceeds of the house, borrowers can also repay it monthly as long as they occupy the place or it can also be by periodic advances through a line of credit. Otherwise, the borrower can pay the mortgage by a combination of all these three.

Reverse mortgage is ideal for retirees. Anyone above 62 years old who owns a house can qualify provided that their home has enough equity for it. Moreover, existing mortgages must also be paid off and the house should be repaired if necessary in order to get a better value of the residence. Reverse mortgage is actually beneficial especially to seniors. With it, seniors can have a supplement to their income. As such, this type of mortgage is starting to increase in popularity among seniors.

In this mortgage, the borrower can already expect that the mortgage will be a very large sum of money considering that the interest grows overtime and the borrower does not pay for a monthly mortgage. As such, it is important that borrowers consider all options when considering for a reverse mortgage. Borrowers must understand what the pros and cons are and if possible compare rates and prices with others. Reverse mortgage can be both beneficial and risky, but if the borrower knows how to get a good deal and can recognize what is a sales pitch from a genuine proposition, then they’ll be able to get the best reverse mortgage.

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For more information about “How does a Reverse Mortgage Work,” please visit https://www.facebook.com/pages/How-does-a-Reverse-Mortgage-Work/729919510459440.

Company: http://seniorhud.com

Address: 20029 95th Place NE, Bothell, WA 98011

FB Page: https://www.facebook.com/pages/How-does-a-Reverse-Mortgage-Work/729919510459440

Email Address: [email protected]

Phone : (425) 503-5778

Contact: John Francis
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Issued By John Francis
Website Reverse Mortgage Work
Phone (425) 503-5778
Business Address 20029 95th Place NE,
Bothell, WA 98011
Country United States
Categories Real Estate
Tags reverse mortgage , reverse mortgage work , seniorhud
Last Updated March 31, 2015