If you are thinking about a reverse mortgage; it is important to have some vital information about the process. The reverse mortgage can be used to help you access some of the equity in your home. Many of people use it to improve their homes, meet some unexpected expenses or even to supplement social security.
The information about the mortgage is vital when you are making your decision whether it is fit for you. You need first of all to know what it is before you make that decision. A reverse mortgage is a special type of house loan that enables you to convert some of the equity into cash. The mortgage is different from others in that you are not obligated to start repaying he mortgage immediately unless you stop using the home as your residential place or you fail to meet your mortgager obligations.
The other important information is on who qualifies for such a loan? The first thing is to be a homeowner and one who is sixty-two years of age and above. You have to own your home out rightly, or you have a small surplus of mortgage remaining. 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. Another thing you may be asking yourself s whether your home can qualify for this kind of mortgage. to qualify for the loan your home must be a single home occupier. May be you are wondering what could be the difference between a reverse mortgage and a home equity loan.
What happens with a home equity, the borrower must make monthly payments on the principal and the interest. The payment also includes taxes, and insurance premiums. If you have to sell your house, you must be prepared to pay all the mortgage at the point of selling. That means for you to sell the house and transfer the ownership to a new buyer, you must first clear your loan. 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. The amount of money differs from borrower to borrower, and it depends on some factors. The the first determinant factor is the age of the person borrowing. Another factor is a no eligible spouse.