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A reverse mortage is used by people over 62. They can take part of the equity In their home and turn it into cash.
"Basically, a reverse mortgage is a way for seniors to turn their home equity into a cash loan. The money is distributed either via one lump sum or through payments. The owner's repayment is deferred until the owners death."
AARP.com/reverse has a lengthy article on what a reverse mortgage is.
HUD endorsed loan where the over 62 homeowner can gain access to a portion of their equity in the form of cash. The older a person and the more valuable a home determines the amount of cash they have access to. Once in place, the reverse mortgage can either pay the borrower monthly or create an open line of credit that the borrower can use for any purpose. Any money used will accrue interest and will eventually have to be paid back after the person sells the home or passes away. If a person has a current regular or forward mortgage they should have at least 50% equity to qualify for a revers
The Home Equity Conversion Mortgage (HECM) is FHA's reverse mortgage program which enables you to withdraw some of the equity in your home. The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements and more. You can receive additional free information about reverse mortgages in general by contacting the National Council on Aging at (800) 510-0301 or downloading their free booklet, "Use Your Home to Stay at Home," a guide for older homeowners who need help now. It's smart to know more about reverse mortgages, and decide if one is right for you!
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Do you still have to pay monthly mortgage if you have a reverse mortgage?
No, the purpose of a reverse mortgage mortgage is to eliminate mortgage payments permanently.
What is a reverse mortgage lead?
A reverse mortgage lead is where you can get names of people that are interested in getting a reverse mortgage. These leads should already have been screened to meet the criteria for a reverse mortgage.
Do reverse mortgage calculators work accurately?
A reverse mortgage calculator is only as accurate as the information that is imputed by the user. Consider it as an educated guess or a ball park estimate.
What does a reverse mortgage adviser do?
A reverse mortgage adviser usually tells people how much their homes are worth. Sometimes they work for financing companies or banks, and do estimates on homes.
What are the reverse mortgage scams taking place today?
Yes, there are reverse mortgage scams, as well as regular mortgage scams. You need to be careful who does your reverse mortgage, so you do not get scammed
Can you qualify for a Reverse mortgage with balance owed on original mortgage?
Yes. The reverse mortgage must however pay off the existing mortgage balance, which means you need some equity to make the qualification work. If there is not enough equity in the home to qualify for a reverse mortgage you may choose to bring in the amount needed to finish paying off the existing mortgage- thus eliminating the mortgage payments for good.
What is new reverse mortgage and where can I learn about it?
You can not get a reverse mortgage if you already have a reverse mortgage in exsistence. If you do not have one you can go to a few places for help such as; rvmortgage.com and allrmc.com
What is reverse equity mortgage?
a reverse equity mortgage usually refers to a reverse mortgage, also referred to as a HECM loan. (Home Equity Conversion Loan). The key difference between a regular mortgage and a reverse mortgage is that no monthly mortgage payments are due on a reverse mortgage. A reverse mortgage also does not have credit or income requirements because there are no payments due. Qualification is based on age- minimum age 62- the value of the home and its location.
Can you have a reverse mortgage on a condo?
The lender who will qualify you for a reverse mortgage can help you answer this question: there is no standard.
What is American reverse mortgage?
American reverse mortgage is when you borrow money based on the value of your house. A reverse mortgage has the option of being a lump sum or installments.
Reverse Mortgage Calculator?
Reverse Mortgage Calculator Use this calculator to help determine the balance of a reverse mortgage. This calculator is specifically designed to show you how the outstanding balance of a reverse mortgage can rapidly grow over a period of time.
Where can you find a reverse mortgage calculator?
Reverse mortgage calculators can be found on line on most mortgage websites.There are hundreds of mortgage loan sites.& This calculator makes it easier to understand the reverse mortgage math and to let you see if this type of mortgage is best for you.
