Posted on: 01st Feb, 2006 10:27 am
Why a reverse mortgage is called a 'reverse'? Does home equity have some function here?
Hi Kim,
You guessed it almost correct. 8) A reverse mortgage reverses the direction of the payments for which it has that name.
In a reverse mortgage the equity of your home reduces as you take out money instead of building up equity by putting the money in.
Regards,
Blue
You guessed it almost correct. 8) A reverse mortgage reverses the direction of the payments for which it has that name.
In a reverse mortgage the equity of your home reduces as you take out money instead of building up equity by putting the money in.
Regards,
Blue
Thanks for the information. How is the equity determined in a reverse mortgage?
Hi Kim,
There are basically three factors on the basis of which the allowable equity is determined -
For more information you can check the reverse mortgage section here. Feel free to ask if you have more queries.
Regards,
Blue
There are basically three factors on the basis of which the allowable equity is determined -
- The age of the youngest borrower.
- What is the appraised value of your home.
- What is the maximum FHA loan limit for your county.
For more information you can check the reverse mortgage section here. Feel free to ask if you have more queries.
Regards,
Blue
Hi Kim,
If you are a senior citizen looking for a way to supplement your income, then reverse mortgage is a good option for you. Reverse mortgage allows you to tap into your home equity to receive money either in a lump sum or monthly payout. To qualify for a reverse mortgage you and any co-borrowers must be at least 62 years of age. You must live in the house and it is your primary address. You must not owe more than the amount of reverse mortgage you qualify for. Lastly, if you apply for a home equity conversion mortgage you must receive counseling prior to starting the loan process.
If you are a senior citizen looking for a way to supplement your income, then reverse mortgage is a good option for you. Reverse mortgage allows you to tap into your home equity to receive money either in a lump sum or monthly payout. To qualify for a reverse mortgage you and any co-borrowers must be at least 62 years of age. You must live in the house and it is your primary address. You must not owe more than the amount of reverse mortgage you qualify for. Lastly, if you apply for a home equity conversion mortgage you must receive counseling prior to starting the loan process.