Reverse
mortgages are a hot topic in the real estate market today, and one can
see why when you understand the reverse mortgage rules. Determining who
can qualify for one is somewhat easy. The adage of age before beauty is
the golden key to this type of mortgage. Don't get me wrong there are
plenty of seniors who have carried their beauty with them, but the
financial institutions look at age as the main qualifying factor.
Older individuals who own their own home are usually able to obtain
security for a loan. This also applies to those who not married as, no
where in the rules is being married a requirement to obtain one.
Borrowing on the value of their home is one way that senior's may
acquire added cash during this juncture of their life. This type
of mortgage can offer the ability to stay in their cherished home
without depleting the hard earned savings. Their home equity can be a
source of added cash flow so other financial needs or wants can be
addressed. This is one of the have your cake and eat it too advantages
of the reverse mortgage.
This is a major course of action to obtain a loan leveraging your homes
equity. As long as you dwell in your home sweet home, no repayment has
to take place in a reverse mortgage loan. As borrowers you can get some
tax free cash for your home equity because it is considered a loan not
an income source. And you will not be owing more than the appraised
value of your home.
Did you know that the federal government regulates reverse mortgages,
and sets the limit financial institutions are allowed to lend you. It
is a comforting thought to know that the lenders are rigorously
regulated by the government, in fact they themselves often offer the
lowest cost ones.
It is also advised to take into account some of the reverse mortgage
rules before you jump in. To begin with it must be the in the primary
lien position, therefore all prior liens and loans must already be
paid. As a borrower you have some nice choices available in the way you
receive these funds. You may decide that having the entire lump sum is
the best course of action for your needs, or perhaps you would prefer
to have it set as a monthly income source for a set term as long as you
reside in your home. Another option one may want is to have a
line of credit established. A creative combination of the three
could also be available for those who chose to go this route. Or you
may want to read about
bi-weekly
mortgages.
