| What you need to know about a reverse mortgage |
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reversemortgageinfo
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| What you need to know about a reverse mortgage |
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The HECM or Home Equity Conversion Loan is a product of the FHA. It is also known as a reverse mortgage. It is meant to give senoir homeowners security by allowing them to leverage the equity they've built up in their home over the years. It can help homeowners whose greatest asset is their equity,
Unlike a home equity loan, no repayment is necessary until you leave the home. To be eligible you should be 62 or older, own your home or have a low mortgage balance and you should reside in the home. Your home should be a single family home, 2-4 unit property, condo or townhome.
The loan doesn't have to be paid back until you pass on or sell the home. The loan is repaid by private funds or by selling the home. The remaining equity, if any, belongs to your heirs.
Anyone who is interested in a reverse mortgage and is applying for one, must undergo mandatory HUD counseling. And according to the Truth in Lending Act, the lender must be forthright in informing you of the cost of borrowing. If your equity is your greatest asset, a reverse mortgage may be a viable option for you.
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Sun Jun 19, 2011 9:01 pm |
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realestatesacram
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Also, I would like to add that reverse mortgage is a special type of loan that can be used by people 62 and older to convert the equity in their homes into cash. A reverse mortgage can be an economic lifeline for senior homeowners on fixed incomes that don't meet basic living expenses.
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Tue Jun 28, 2011 2:31 pm |
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