mortgages are a type of mortgage that senior citizens can use to borrow
against the equity in their homes. Here are some frequently asked
questions about reverse mortgages and their benefits.
Q. How does a reverse mortgage work?
a reverse mortgage, the borrower receives a loan up to the amount of
equity he has in his home. Instead of requiring monthly payments as in
a traditional mortgage, nothing is due until all borrowers move out of
the home, sell the home, or die.
Q. What can a reverse mortgage be used for?
you need it for. Certain types of reverse mortgage can only be used for
a specified purpose, but there are reverse mortgages available that can
be used for any purpose.
uses for reverse mortgage proceeds include home repairs, property
taxes, a new car, and supplementary income. But there is no limit to
what you can get a reverse mortgage for.
Q. Who is eligible for a reverse mortgage?
Senior citizens who are 62 or older and own their homes qualify for a reverse mortgage.
Q. What are the income requirements for a reverse mortgage?
are none. Because you do not have to make monthly payments, there is no
minimum income requirement for a reverse mortgage. You could have $0
per month in income and still qualify for a reverse mortgage, as long
as you meet the age and ownership requirements.
Q. What if I havenít yet paid off my first mortgage?
you have not paid off your traditional mortgage, you must pay it off
before you can get a reverse mortgage. The reverse mortgage proceeds
can be used to do so if there is sufficient equity, and if you have
more equity than is needed to pay it off you can receive the difference.
Q. How is a reverse mortgage paid out?
can receive your funds in a lump sum, as monthly payments for a
specified time or the rest of your life, or as a line of credit. Some
programs offer the option to combine two of these options. This
flexibility is one of the greatest benefits of the reverse mortgage.
Q. Does my home have to meet any special requirements to qualify for a reverse mortgage?
owner-occupied dwellings qualify. Houses, condominiums, one to four
unit dwellings, and some manufactured housing qualify. Most mobile
homes and cooperative housing, however, do not qualify.
lenders require a home to be inspected before lending through a reverse
mortgage. If any structural problems are found, they must be repaired.
In most cases, the proceeds from the reverse mortgage can be used to
These are the answers to some of the most basic and commonly asked questions about reverse mortgages.
you would like more information about the reverse mortgage process and
how it can help you live out your retirement without the stress of
financial burdens please call me or one of my team members at
561-316-6800 or send an email here: TheMortgageTeam@ChristianPenner.com
will be happy to provide a complete complimentary analysis of the
amount of money you could expect to receive from the best available