If you are interested in reverse mortgage, there are some important information that you need to know about the whole process. The reverse mortgage is a process that enables you to withdraw some of the equity in 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.
The information about the mortgage is vital when you are making your decision whether it is fit for you. The first step is to know what it is before you decide whether it is what you want. A a reverse mortgage is a type of loan that allows you to transform a portion of the home equity into cash. The beauty of the reverse mortgage is that you do have to start repaying until you stop living in the same house or you fail to repay the original mortgage.
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 have to be using the home as your residence, have cleared the loan or with little balance that can be paid for using the reverse mortgage and also show evidence of income to enable you to pay the other loan.
You do not have to have purchased your house using insured mortgage in order to qualify for this kind of loan. Another thing you may be asking yourself s whether your home can qualify for this kind of mortgage. You need to be a single family occupier of the home for you to qualify. You may be interested to know what is the difference between a reverse mortgage and a home equity loan.
With equity loan, the borrower is required to pay both the principal and the interest every month. The payment also includes taxes, and insurance premiums. what you may also be interested to know is that in case you want to sell the house while you still have the loan, you must clear all the loan balance at the time of selling. That means before you can transfer the house to the new buyer, you must clear your mortgage. 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 for each borrower is different depending on some factors. The the first factor that affects the amount is the age of the person acquiring. The no eligible spouse is another factor that can affect the amount.