The Basics Of Reverse Mortgage Information
By Wade Robins
One of the most important things you need to remember if you are thinking about applying for a reverse mortgage is that your home is by far your most important asset. Applying for a reverse mortgage, therefore, demands that you get as much reverse mortgage information as you possibly can so that you can protect yourself from reverse mortgage scams.
Finding good reverse information on how the reverse mortgage process is supposed to work and on the reputable reverse mortgage lenders in your area will protect you and your loved ones from a serious financial mistake. And getting solid reverse mortgage information is surprisingly easy.
Reverse Mortgages Vs. Home Equity Loans
The first bit of reverse mortgage information of which you may be unaware is that, while like a home equity loan a reverse mortgage lets you borrow against your home, unlike a home equity loam, a reverse mortgage will pay you money each month instead of requiring you to make monthly payments.
The second bit of welcome reverse mortgage information is that neither your credit history nor your current income and financial status will have any bearing on your eligibility for a reverse mortgage. If your home is completely, or nearly, paid off, you can borrow against it with a reverse mortgage.
Reverse Mortgage Restrictions
Other reverse mortgage information is that if you decide to take out a reverse mortgage you will have to commit to living in the mortgaged home for at least fifty percent of every year, and that either you or the youngest of the home’s owners must be no younger than 62. Of course, your home will also have to qualify for the reverse mortgage, being free, or nearly free of any previous mortgages or liens.
The lenders with whom you discuss you loan should be willing to provide you with any further reverse mortgage information, including material on the necessary inspection and appraisal, and which financing packages are available to those in your circumstances. If any lenders won’t give you the reverse mortgage information you want, scratch them off your list of possibles and move on.
Spend as long as it takes to get all the information you need and to find the reverse lender with whom you feel most comfortable. Ask about your three options for accessing your reverse mortgage funds: the lump sum cash payment, the credit line, and the monthly payments. If you like, you can ask for information on getting a combination of any two or all of them.
The last bit of important reverse mortgage information is related to what you can do with you money and how you are expected to repay it. If there is a mortgage balance on your home, you’ll have to pay it off with some of your reverse mortgage funds; otherwise, you can spend the money however you like.
The best aspect of getting a reverse mortgage is that there are no payment obligations until you are no longer living in your home at least half of each year, or decide to sell it, or its youngest owner passes away. Just remember that because the home’s title remains in your name, you are responsible for its maintenance, insurance, and taxes.
