UnCategorized This article can handle only some of the many questions and I strongly recommend, that before you will sign anything, you go and meet the federal reverse mortgage counselor, who can tell, what is the best solution for your special needs and whether the reverse home mortgage loans in general are the solutions for you. 1. I Own A Home But Have Modest Monthly Income. Do not worry! The reverse mortgage loans have been developed to help American seniors age 62 and over with their financial problems. The basic thing, how these loans work is, that a senior can get cash against the value of his home. The key requirement is, that the home has equity left against which the senior can borrow. If he has an old mortgage, it must be paid away with the new reverse mortgage loan. This all means, that the amount of your other assets nor your monthly income has no meaning in this case. The source of the cash is the home equity, which you have already paid and want to use now, when your situation has been changed. 2. If I Do Not Pay, Can The Lender Get My Home? The reverse mortgage loans work in the way, that you will not loose your home. When you take the reverse loan, you have to take a mortgage insurance. That is a compulsory insurance, which covers the expenses in that case, that your home value, the selling price, is smaller than the sum of all reverse loan expenses. However, when you as a borrower will remain the owner of the home, you must take care of all the normal expenses, like taxes, insurances, utilities, fuel plus other expenses and to keep the property in a good shape. If you do not take care about the taxes or insurances and do not keep the home in good condition, your reverse loan can be due and payable. 3. Can I Refinance The Reverse Mortgage Loan? To refinance the reverse loan is wise, if the home value has increased, the interest rates have dropped or the maximum limit, which you can borrow, increases. However, check the costs of the refinancing. As a rule we can say, that the benefits, savings, must be twice as much as the costs of the refinancing. 4. How Should I Use The Money? The reverse mortgage loans are planned to be flexible. The guarantee is always the equity of the home. Actually you can decide how you take the money, as a lump sum, as monthly payments as a credit line or as a combination of all these. And, this is important, you decide, how you will spend the money. You do not have to report that to anybody. 5. When Do I Have To Pay All The Costs? With the usual mortgage, you have to pay back every month. With the reverse mortgage loans everything will be paid back at the closing of the loan. So if you have usual mortgage left you will pay that away with the reverse mortgage loan and in this way your monthly disposable cash increases! About the Author: 相关的主题文章: