Life after
retirement is quite tough; when any individual thinks about his life after
retirement many things come in his mind i.e. adequate financial support and
regular income to maintain his life. Many senior citizens have a property in
their name and they can use it for regular income with the help of a reverse
mortgage. A reverse mortgage and traditional mortgage loans are quite opposite
they are not the same. In reverse mortgage, if a senior citizen has a house in
his name he can mortgage his property with A Reverse mortgage lender or
any financial institution and can get regular income. If your age is above 62
and you have a property that can qualify for a reverse mortgage loan and it has
adequate equity. This loan is called reverse mortgage loan because in this
lenders pay to the borrower instead of making monthly payments to the lender,
unlike traditional mortgage.
In reverse mortgage loan, the
borrower doesn’t have to pay a loan unless and until the home is sold or
vacated by the homeowner. The borrower can live in the house without making any
monthly payments towards the loan balance. But the borrower should pay property
tax and homeowners insurance and homeowner’s associate’s dues as applicable.
A reverse
mortgage loan is due when the surviving borrower of the house dies or the
borrower chooses to sell the property. The lender bank gives you the option of
settling along with interest without selling the property. If they are unable
to pay then the bank has the right to recover the loan amount by selling the
property. If any amount is left after the settlement of loan then it will be
given to the legal heirs. Many lenders offer fixed-rate mortgages and some
offer adjustable mortgage loan. This loan is insured by the federal government
because many times the value of the house is more than the loan so when the
house is sold the remaining amount is covered by the government.
U.S department
of housing and urban development has insured reverse mortgage as a home equity
conversion mortgage. Many mortgages don’t require any repayment and help owners
in maintaining their level of ownership and retain their title to their home. A
reverse mortgage broker helps senior citizens in getting the
reverse mortgage loans. We recommend you to look for reputed and trustworthy
mortgage lending institutions.
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