Retire With Reverse Mortgage, Earn Secure And Regular Income

Have you noticed, that the reverse mortgage is for a senior, who needs a supplemental income and who has the home equity as an only source of money. If you ponder the reverse mortgage as one option, read this article!

First, the reverse mortgage loan is for a senior, who is at least 62 year old, own a home, which is his or her permanent home and where he has equity left. The lender will not ask any income nor credit score, because the loan is always taken against the equity. A senior or heirs will never owe more than the market value of the home.

A borrower can not lose the home, if he pays the taxes, the property insurances and keeps the property in a good shape. If not, the lender has the right to claim, that the property will be sold and the loan capital, the accrued interests and all the costs will be paid back. A borrower has to take a mortgage insurance, which will be used if the home selling price cannot cover all the costs.

You Order, How The Lender Will Pay.

It sounds odd, but the lender honestly will pay to the borrower according to the timetable, which the borrower has ordered. The borrower can pick the monthly payment, lump sum, credit line or the combination of some or all of these. The borrower has no back payments during the loan running time, but the capital, interests and all the costs will be paid back when the running time has been ended and the home sold.

How To Pick The Timing?

This depends on your plan. If you already know, how much you will need per month, or annually, then the plan is made following this need. If you do not know, then you have another alternative. If you want to be ready for an extra medical bills, for example, you can select the credit line and use it when or if needed. Or you can get the needed reverse mortgage information and see whether you will need it in the future.

Reverse Mortgage As A Supplemental Income.

The maximum reverse mortgage loan is $ 625.500 which means it cannot be the one and only source of money to cover your living costs. For most seniors the reverse loan is a supplemental source of money and they use it to cover sudden extra costs, like the home repair or medical bills.

If You Want To Play It Safe, Pick The Fixed Interest Rate.

The borrower will reamain the home ownership, which means that the home value increases benefits him. However he will start to enjoy about this benefit after the running time is ended. The biggest cost item is usually the accrued interest rates. When a senior succeed to agree the fixed rate loan during a recession, when the rates are low, that can honestly save a lot of money and to make the planning safe.

Pick A Reputable And Well Known Lender.

A reverse loan agreement is always a long term commitment, which means that the lender selection is a careful process. It is clear that only the reputable, long term companies can fulfil the requirements. The reverse loans, which are secured by the Federal Government are safe, because the Government will pay to the lnder, if the original lender cannot do that.

Juhani Tontti, B.Sc., Marketing. Have You Noticed, That The Reverse Mortgage Is For Seniors, Who Are Cash Poor And Need A Supplemental Retirement Income To Manage Financially. Visit: Reverse Mortgages

How The New FHA Reverse Mortgage Saves Costs

Have you heard how the new FHA reverse mortgage loan program gives a senior a possibility to buy a smaller home or home from another location without using all the savings, plus that a senior can save thousands with the process?

The new FHA reverse mortgage program has an ideal timing. Many seniors suffer from the hard recession, dropped share prices and rising living costs, including the medicines. What they need is a source to grow the daily income. For many the home equity is the only source, which FHA has understood.

FHA reverse mortgage was developed after FHA noticed, that many seniors first sold their bigger homes and bought smaller ones. Then they signed the reverse loans against the smaller ones. What happened was, that they paid the closing costs two times.

New HECM Reverse Mortgage For Home Purchase Saves Costs.

New FHA reverse mortgage gives an opportunity to buy a new home with the reverse mortgage without selling the old home. The allowed home types are single family homes, condos or a small multi family residences. Seniors can reveal some of the existing equity into cash.

As long as the property is their primary home, they will enjoy about the monthly payments, which are tax free. Plus they can rent out the old home and to get an extra disposable monthly cash. The lender follows the payment instructions of the borrower. The alternatives are the monthly payments, lump sum, credit line or the combination of these all.

Here Is, How You Can Get The New FHA Reverse Mortgage.

First, you have to be at least 62 years old and own a home, where you live permanently and where you have equity left. Altogether three seniors can become borrowers, but then everybody must fulfil the requirements. A borrower must go through the counselor meeting, where he has a chance to ask advice.

How Much A Senior Can Get With The New FHA Reverse Mortgage?

Usually the loan sum is 35 – 55 % of the home equity. However, it is not wise to take a very small reverse loan, because the costs can take the major part of the equity. The loan sum is not fixed, but depends on the appraised value of the home, on the level of the interest rate and on the age of the borrower, or if they are many, on the age of the youngest borrower. The ceiling is in all cases $ 625.500.

A Senior Can Get Rid Of The Monthly Mortgage Payments.

When a senior wants to buy a smaller home with FHA reverse mortgage and to sell an old home, where he has mortgage left, he will honestly improve his monthly financial situation. First, he will pay away the old mortgage, then he will take a reverse loan against the equity of the new home plus he will get an extra sum of cash money. In the end of the day, he will not pay any monthly mortgage payments.

If The Market Is Soft, A Senior Can Postpone The Sale Of The Present Home. Let us assume, that a senior wants to buy a smaller home with the reverse loan, but does not want to sell the old home, because the market prices are down. So he decides to wait until the prices rebound. What he can do is, that he can rent out the present home and buy a new one with HECM reverse mortgage for home purchase and to wait until the prices recover.

A senior Can Never Owe More, Than The Value Of The Home.

This makes a new FHA reverse mortgage riskless to the borrower and to his heirs. The only collateral, which the loan has is the home equity. The running time will end, when the last borrower will sell the home, move away or pass away. Then the home will be sold and the selling price is used to pay the loan capital, interests and all the costs. If it does not cover the whole sum, the mortgage insurance will pay the rest.

Juhani Tontti, B.Sc., Recommends To Use FHA Reverse Mortgage To Avoid Double Costs. The HECM Reverse Mortgage Is The Only Reverse Loan Secured By The Federal Government. Visit: Reverse Mortgage For Home Purchase