If you are interested in reverse mortgage, there are some important information that you need to know about the whole process. One of the great importance of reverse mortgage is to allow you draw some of the equity from your home. Many of people use it to improve their homes, meet some unexpected expenses or even to supplement social security.
You will need full information about the mortgage before you decide whether it is the best option for you. The thing is to make sure you understand it before you decide whether it is what you want. A a reverse mortgage is a type of loan that you get on top of the existing home mortgage. The beauty of the reverse mortgage is that you do have to start repaying until you stop living in the same house or you fail to repay the original mortgage.
The other important information is on who qualifies for such a loan? The first requirement is to be a homeowner, and the other is to be not less than sixty-two years of age. You should have minimal amount of mortgage remaining or be a homeowner outright. You must be having enough income to pay the new home loan, the remaining mortgage should so little such that is can be settled by the new loan, and also you must be living in the same home.
For you to qualify for this kind of loan is not a must that you used insured mortgage to purchase the home. You may be asking yourself whether your home is among those that can qualify for the kind of loan. You need to be a single family occupier of the home for you to qualify. You may be interested to know what is the difference between a reverse mortgage and a home equity loan.
The borrower of the equity loan pays both the principal and the interest on monthly basis. The the borrower will also be expected to pay the taxes, the insurance and the utilities. If you have to sell your house, you must be prepared to pay all the mortgage at the point of selling. That means you cannot sell the house and transfer ownership before the loan is fully repaid. If it is your spouse or heir selling the home, they will have to pay the remaining loan, and the rest of the balance shall be for their use. Many factors that can influence the amount that you need to borrow. The the first determinant factor is the age of the person borrowing. The no eligible spouse is another factor that can affect the amount.