What I Can Teach You About Loans
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. Most people will use the reverse mortgage to pay some unexpected bills like the hospital bills, home improvement or supplementing of social security.
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 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 question you may want to ask is who qualifies for such a loan? The first requirement is to be a homeowner, and the other is to be not less than sixty-two years of age. You should have minimal amount of mortgage remaining or be a homeowner outright. 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. Are you asking yourself the different between a reverse mortgage loan and a home equity loan.
The borrower of the equity loan pays both the principal and the interest on monthly basis. 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 you cannot sell the house and transfer ownership before the loan is fully repaid. If you have left the house to your spouse or heir, then on selling the house, they will need to repay the loan and the remaining balance shall be for their use. Many factors that can influence the amount that you need to borrow. One of the elements is the age of the borrower. Another one would be if the spouse cannot qualify to borrow.