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What Is A Reverse Mortgage?

Date:September 2, 2009 | Author:Naoma Doriguzzi | Category:Lenders

Reverse Mortgages is a unique loan available to those 62 and older. It allows the homeowner to take part of the their equity in their home and turn it into income with out selling, giving up title, or taking on monthly mortgage payments

Seniors will never have to leave their home as long as taxes and insurance payments are made and the home is kept in reasonable condition
No income qualifications
No credit score requirements
No monthly mortgage payments required
No repayment of the loan until the last borrower moves out permanently or passes away
Proceeds paid in lump sum, monthly payments, line of credit or any combination
Independent consumer counseling required

To find out about all the options available to you or a family member, contact a reverse mortgage specialist that you trust.

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Responses (0)

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Erin Brenner 7:17 AM - Sep 2,2009

So is this an equity loan that doesn’t have to be paid back until the last homeowner moves permanently, sells the home, or passes away? If the case is the homeowner passes away, what are the repayment terms?
jennifer 11:07 AM - Sep 2,2009

If the homeowner passes away the loan has to be repaid as a typical mortgage would be including any interest earned. However, one good note about the program is that if the homeowner takes the line of credit option, the interest only accrues on monies used from the line of credit. So if a borrower leaves $50K in the line of credit and only say $10K was used to finance the loan fees, title fees, and FHA insurance premiums then they would only be paying fees on the $10K, not the $50K, unless they were to use a portion or all of that money.
latin 12:31 AM - Sep 5,2009

I wish there’s similar thing in my country