FEATURED REAL ESTATE ARTICLES
Demystifying the Reverse Mortgage
1. FHA Insured
2. Lender Insured
The exact details of each of these reverse mortgage types differ, and for homeowners thinking about pursuing a reverse mortgage program, a reverse mortgage counselor should be consulted to find out which type of reverse mortgage best suits your needs. With a standard or “forward” mortgage or home equity loan, a home owner is responsible for making monthly payments to repay the debt of the loan. Reverse mortgages only require the homeowner or the homeowner’s heirs to pay the loan back when the homeowner is no longer living in the home. If the homeowner decides to sell the home and move out, the loan will be paid back by the proceeds of the home sale. If the homeowner has passed on, and the heirs are responsible for paying the reverse mortgage back, the mortgage can be satisfied by rolling the reverse mortgage into a “forward” mortgage or selling the home and using the proceeds to satisfy the loan requirement. When a homeowner does opt for the reverse mortgage option, there are three main ways that they receive the funds from the loan. Homeowners can receive a one-time lump sum in cash, a regular monthly cash disbursement, or an open credit line that allows the homeowner to determine how and when they need the funds paid to them. If you, or someone you know, is a homeowner 62 years of age or older and is in need of cash to cover their daily living expenses or would like their home to provide a source of regular income, this is an option that is growing ever popular and should be looked into and considered.
Craig Romero is an author and mortgage analyst dedicated to helping homeowners maximize the investment in their homes. Discover how to quickly build a minimum of $40,000 worth of home equity and pay your mortgage off in 10 years or less without making biweekly mortgage payments. Visit: https://www.wisemortgageinfo.com