|
|
Top 10 Reverse Mortgage Loan Questions
- What is a reverse mortgage?
- What is the difference between a reverse and a traditional loan?
- What can I use the money for?
- Who is eligible for one?
- How much money can I receive?
- What does my estate do with the loan?
- How much does a reverse mortgage cost, are there any fees?
- How do I find out what my home is worth?
- What should I ask my lender?
- Will a reverse loan create income that I must claim on my taxes?
- What is a reverse mortgage?
A reverse mortgage is a type of home loan available to seniors (62 years and older). It is a new option for seniors to use the equity in their house to pay for living expenses during their Golden Years. The payment can be received as a one time lump sum, or divided into equal monthly installments.
- What is the difference between a reverse and a traditional loan?
A traditional loan requires the homeowner to make a monthly payment that goes towards paying the lender who purchased their property usually over a 15 or 30 year period. After the predeterminded repayment period time, the homeowner owns the property and no additional payments are made.
A reverse mortgage allows a homeowner to draw montly or a lump sum payment against the equity that is available in a property. Also, the homeowner is not required to make any payments on the loan.
- What can I use the money for?
A borrower can use the money from a reverse loan for a wide variety of expenses such as, health care, home improvements, a second house, vacation, or any other expense imagined. Utilizing a reverse loan will not limit the way the funds can be spent.
- Who is eligible for one?
Seniors over the age of 62 who own their own home are eligible. While there are no salary or net worth requirements for a reverse mortgage, the borrower can not have a pending bankruptcy that has not been finalized yet. Also, low value property such has mobile homes may not be approved.
- How much money can I receive?
This varies depending upon your age, apprised value of the property, and location of the property. Talk with a reverse mortgage specialist today to find out how much money you can receive. It is important to understand that the lender can not take the property away from you, if you outlive the loan. If you and/or your estate continues to pay the taxes and insurance you can live in the house forever.
- What does my estate do with the loan?
Your estate can pay off the loan with the proceeds of the sale of the property when you die, sell the house, or go to an assisted living home. If the estate does not wish to sell the property, they can refinance the property and assume the new loan.
- How much does a reverse mortgage cost, are there any fees?
The cost of the loan varies from state to state and the exact type of reverse mortgage that the borrower chooses to use. Typically there is a 2% insurance premium and a 2% origination fee. This is in addition to the normal closing costs. On a $100,000 property, would incur a cost of $4,000 plus the closing costs.
- How do I find out what my home is worth?
Click on the link here to have a 100% Risk Free mortgage analysis completed on your house.
- What should I ask my lender?
Be sure that you have all of your financial paperwork available when you talk to the lender. You will want to know exactly what the fees will be for starting the loan, what your monthly fees will be, how much money you can receive, and what your options are for your estate when the property is passed to them.
- Will a reverse loan create income that I must claim on my taxes?
No, you will not have to claim it since it is not income since the IRS considers a reverse mortgage to be a loan advance. However, it is best that you talk to an accountant or your tax attorney before completing any transaction.
>> 100% FREE REVERSE MORTGAGE PROFILE - Satisfaction Guaranteed.
|
