Monday, January 30, 2012

Is a reverse mortgage right for you?

A reverse mortgage is a loan for senior homeowners over 62-years-old that uses some of your home equity as collateral. If you keep paying your property taxes and insurance, the loan does not have to be repaid until the last homeowner moves out of the property or passes away. At that point, the home is sold and the loan plus interest is repaid and the remaining home equity goes to the surviving owner or the estate. If the home is worth less than the loan, the estate is not liable for any losses.

Most homes are eligible, although mobile homes must be on owned land and built in last 30 years. Your home needs to either be free and clear of other loans, or any existing mortgage will first be paid off with loan proceeds before additional money is taken out. For instance, you might still owe $100,000 on a loan and have monthly payments of $1,000 a month. With a reverse mortgage, you could pay off the loan and also receive perhaps $1,000 a month in extra income. This would leave you $2,000 a month richer.

Read the rest of the article at Valley News

1 comment:

  1. Reverse Mortgage – Get the current Reverse Mortgage news for business experts. Reverse mortgage calculator are loans that are promoted for senior peoples, and are used to make public the home equity in the assets as one time or several payments.
    reverse mortgage calculator

    ReplyDelete