Posted on: 22nd Jul, 2007 06:57 am
What is reverse mortgage and what are consequences of the same
Hi hanth,
Welcome to forums.
A reverse mortgage is specially offered to those people who are aged 62 and above. It works out in a different way compared to any traditional mortgage. In all traditional loans, the borrower has to pay off the loan in the form of monthly installments till the end of the repayment period. But in a reverse loan, you need not make monthly payments. Instead, the lender will either offer you the loan in the form of lump sum payment or through monthly cash advances. And, you need to repay only when you sell off the property prior to the end of the repayment period or by selling off the house at the end of the loan term. However, if you pass away in the meantime, your heirs will have the responsibility of repaying the loan or else they will lose the home.
Thanks
Welcome to forums.
A reverse mortgage is specially offered to those people who are aged 62 and above. It works out in a different way compared to any traditional mortgage. In all traditional loans, the borrower has to pay off the loan in the form of monthly installments till the end of the repayment period. But in a reverse loan, you need not make monthly payments. Instead, the lender will either offer you the loan in the form of lump sum payment or through monthly cash advances. And, you need to repay only when you sell off the property prior to the end of the repayment period or by selling off the house at the end of the loan term. However, if you pass away in the meantime, your heirs will have the responsibility of repaying the loan or else they will lose the home.
Thanks
hanth,
Are you intending to go for a reverse mortgage? If so, you need to satisfy certain eligibility criteria. It's better that you get some idea of reverse loans from the section on Reverse Mortgage. This will help you to know about the features of such a loan and whether you will benefit from it.
Are you intending to go for a reverse mortgage? If so, you need to satisfy certain eligibility criteria. It's better that you get some idea of reverse loans from the section on Reverse Mortgage. This will help you to know about the features of such a loan and whether you will benefit from it.
If there is equity in the house then reverse mortgage is a good option for senior citizens. It is a way to encash the equity in the house.
Hi Hanth,
A reverse mortgage is a senior citizen loan taken against the home by which the borrower is not required to pay off the loan as long as he stays in the home. To know more on reverse mortgage and its consequences, please refer to: http://www.mortgagefit.com/reverse.html
A reverse mortgage is a senior citizen loan taken against the home by which the borrower is not required to pay off the loan as long as he stays in the home. To know more on reverse mortgage and its consequences, please refer to: http://www.mortgagefit.com/reverse.html
Hanth, as noted above a reverse mortgage is a loan which enables you to use the equity built up in your home as income for the remainder of your life. This has become a highly popular type of mortgage, with good reason.
Our aging population is sorely lacking in retirement income, and tapping home equity to supplement is affordable as well as attractive.
I happen to work for a mortgage company (First Horizon Home Loans) which makes such loans. You may contact me via email at gmakerley@firsthorizon.com if you wish additional information about this program, including just how much you might qualify for under the plan.
You can also get additional information at www.aarp.org , a good reference point.
Our aging population is sorely lacking in retirement income, and tapping home equity to supplement is affordable as well as attractive.
I happen to work for a mortgage company (First Horizon Home Loans) which makes such loans. You may contact me via email at gmakerley@firsthorizon.com if you wish additional information about this program, including just how much you might qualify for under the plan.
You can also get additional information at www.aarp.org , a good reference point.
Hi Gmakerly,
Welcome to our forums.
You are quite true. Our aging population does not have enough of income for retirement years. I think that's because somewhere there's a lack of proper planning and budgeting. Moreover, many of them had taken mortgages or credit card debts at an earlier and half of their life goes on paying off such debts. That's again I suppose due to lack of financial planning.
However, reverse mortgages are indeed a solution to their financial problems.
Thanks for sharing your knowledge with us.
Good luck ahead and enjoy visiting our forums. :)
Welcome to our forums.
You are quite true. Our aging population does not have enough of income for retirement years. I think that's because somewhere there's a lack of proper planning and budgeting. Moreover, many of them had taken mortgages or credit card debts at an earlier and half of their life goes on paying off such debts. That's again I suppose due to lack of financial planning.
However, reverse mortgages are indeed a solution to their financial problems.
Thanks for sharing your knowledge with us.
Good luck ahead and enjoy visiting our forums. :)