As a Senior Homeowner, you may find
the extra money obtainable with a Reverse Mortgage to be of great
benefit to your wants and needs. So how do you go about it?
You qualify for a Reverse Mortgage if
you are at least age 62 and own your home. With a Reverse Mortgage,
you retain full ownership and control of your home.
With a Reverse Mortgage, you may continue
to receive income for as long as you live at home - no matter how
long that may be.
All Reverse Mortgages are non-recourse
loans, which mean you can never ever owe more than your home's value
- no matter what. Reverse Mortgage lenders can only look to your home's
value for repayment - even if you end up receiving more than your
home's future worth.
With a Reverse Mortgage, you and the
lender are insured against loss, so you can never ever be forced from
your home (you own it). The Reverse Mortgage does not have to be repaid
until after you permanently vacate your home.
What is a Reverse Mortgage?
Reverse Mortgages were created specifically
for older Homeowners who own their home outright, or owe little on
it. These Seniors may use the extra cash for living expenses - or
to just improve the quality of their lives.
A Reverse Mortgage is a home loan for
Seniors that does not have to be repaid for as long as they continue
to live in their home. They can receive a loan in a variety of ways.
For example: They can receive a Lump Sum of Money, or a Line-of-Credit
that lets them decide how much of their equity to use, or a Monthly
Advance for whatever term the Senior decides, or any combination of
these Cash Advance Choices.
For older Homeowners, a Reverse Mortgage
can satisfy a variety of needs: You can use the money to payoff debts,
deal with financial emergencies, travel, increase your monthly income,
pay for home improvements, help your children or grandchildren, or
establish a Cash Reserve for future needs. There are many more possibilities.
How Does A Reverse Mortgage
Work?
A Reverse Mortgage is a loan from a
lender on the equity in your home. You retain title, ownership and
control of your home. The lender receives a recorded lien but never
goes on title with you.
With a Reverse Mortgage, the lender
sends cash to you. The more cash you receive the greater the loan
balance, but you make no monthly repayments as long as you live at
home.
A Reverse Mortgage is a 'Non-Recourse'
loan. This means the lender can only look to your home's value for
repayment.
Said payment is due only after you die,
sell, or permanently move. That payment comes out of the equity in
your home or any other means you chose.
Any excess equity goes to you if you
vacate the home or your heirs. Typically, the property is sold and
the loan is repaid. Any remaining equity belongs to you or your heirs.
Contact Allie Mae for further advice.
