If you want to know about a reverse mortgage, here are some vital information you may need to know. One of the great importance of reverse mortgage is to allow you draw some of the equity from your home. Some of the main areas where people use this reverse mortgage is when paying medical bills, supplementing social security or even to improve the home and many others.
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 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.
May be you will then want to know whether you qualify for such a mortgage. to qualify for such a mortgage, you need first of all to be a homeowner who is not lees that sixty-two years of age. You have to own your home out rightly, or you have a small surplus of mortgage remaining. The other requirements are that you must be living in the house, the balance should be low such that is can be settled with the reverse loan, and also you must show evidence of income that will enable you to pay the new loan.
You do not have to have purchased your house using insured mortgage in order to qualify for this kind of loan. You may be asking yourself whether your kind of home can qualify for this kind of loan. You need to be a single family occupier of the home for you to qualify. May be you are wondering what could be 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. It also includes the payment of taxes, utilities, and insurance premiums. You may also d to know that you have to clear your loan if you were to sell the house. That means for you to sell the house and transfer the ownership to a new buyer, you must first clear your loan. A person selling the home whether spouse or child, will have to pay the loan first and the remaining amount is what they will have 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.