If you are thinking about a reverse mortgage; it is important to have some vital information about the process. The reverse mortgage can be used to help you access 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.
You will need full information about the mortgage before you decide whether it is the best option 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 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 need to either be an outright homeowner or with a low mortgage balance. 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.
For you to qualify for this kind of loan is not a must that you used insured mortgage to purchase the home. You may be asking yourself whether your kind of home can qualify for this kind of loan. The criteria is that the home should be occupied by a single family. Are you asking yourself the different between a reverse mortgage loan and a home equity loan.
What happens with a home equity, the borrower must make monthly payments on the principal and the interest. 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 you cannot sell the house and transfer ownership before the loan is fully repaid. 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. Another factor is a no eligible spouse.