| Reverse Mortgage Loans and Their Usage |
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David Devis
Contributing Member
Cash: $ 5.75
Posts: 26
Joined: 07 Jan 2010
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| Reverse Mortgage Loans and Their Usage |
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Reverse mortgage is a loan especially for senior citizens of 62 years old and older. The purpose or reverse mortgage is to release them from the home equity in a big lump sum or in small multiple payments. This allows the home owner to keep the home title. To qualify for the loan you need to be 62 years old or more than 62 years old. There are no minimum income or credit requirements but there are a few other requirements you have to adhere to. Before you proceed with the process, it is best to make sure that you qualify so that you will not waste your time and money on something you are not getting.
This loan is named as reverse mortgage because the payment is "reversed." Instead of having to pay monthly payments to a lender, a lender makes payments to you. Which is why it is known as a reverse mortgage.
You can use the mortgage for anything but it is important for you to pay off any existing mortgages. To pay off the existing mortgage debt you cannot get a new loan so it is best to get help from family and friends. If you are in a pending bankruptcy, it might slow down the process of getting a reverse mortgage to approval.
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Thu Jan 21, 2010 10:59 am |
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Raptor
Full Member
Cash: $ 14.50
Posts: 70
Joined: 15 Nov 2009
Location: Missouri
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While it is common knowledge among those that understand finance, it is not among average people to fully understand the process. A very important piece of information that is tap danced around, is that the house will no longer be available to pass onto someone in the family, unless they are willing to pay off that loan.
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Fri Jan 22, 2010 8:52 pm |
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