Reverse Mortgage differs from the conventional form of mortgage where the borrower is paid by the lender instead of the borrower paying the lender. The lender often distributes the money in different ways like the monthly payments, a lump sum or a line of credit. Once the borrower has availed the Reverse Mortgage option, the borrower can spend the money at their discretion either be it using the funds for medical emergency or home renovation.
The banks loans the money to you depending on the market value of your property. You can stay in your home for the rest of your life and enjoy the comfort of your home.
The loan is eventually repaid when the borrower has passed away or the house has been sold and the total amount includes the money borrowed plus the interests accrued on it. The remaining equity at the end belongs to the borrower or the borrower spouse or the legal heirs.
Reverse Mortgage is a form of loan provided for older homeowners that requires no monthly payments to the bank. The loan is strictly offered to the homeowners who are 62 years or older but the borrowers are still required to pay the property tax and the homeowners insurance. Reverse Mortgage allows the borrowers to access the home equity they have built up in the home and the payments can be deferred till the borrowers passes away or the house is sold.
Most people in senior age have spent their life buying a home or educating their children and are often not financially stable as they near the retirement age. Reverse Mortgage offers the senior homeowners the financial security to enjoy their lives at their means and terms.
Reasons to take the reverse mortgage:
Borrowers listen on title must be 62 years’ age or older
Reverse Mortgage must be the primary lien on the title. Any existing mortgage must be paid off.
The homeowners have to pay the property taxes, plus the homeowner’s insurance and others.
The property put up as collateral for the reverse mortgage must be the primary residence of the borrower.