What is a Reverse Mortgage?
As you may well know a reverse mortage is a new product that is available to seniors 62 years or older who own their own property. A reverse mortage allows the borrower to draw against the equity that is avaiable in a house. This gives them the freedom to spend their money they way they want to, with no restrictions.
Reverse Mortgage Phases
Phase 1: Application Process
You will be required to talk to a reverse mortage counselor to make sure you understand your obligations and requirements for a reverse mortage. The counselor will help to educate you on the different options that are available, and how the process will be completed. The lender will analyze your application and will determine if a home appraisal is necessary. Finally you will meet with the lender to sign the necessary paperwork. We encourage you to meet with a legal advisor or family member before completing the paperwork.
Phase 2: Cash Withdrawl
While you are receiving either a lump sum or monthly payment, you are not required to make any payments back to the lender. However you are responsible keeping up the property and paying property taxes, and homeowners insurance. The borrower is free to move out of the house for up to 12 months before the lender can force the loan to be repaid.
Phase 3: Repayment to Lender
When the homeowner dies, sells the property, or moves out permanently the loan must be paid off. While the loan to the lender must be paid off, the estate does not need to sell the house. The reverse mortage can be paid off, and the house may be refinanced to a new loan. Additioanlly the estate will not have to pay taxes on the proceeds and the will not be responsible for the mortage is it exceeds the value of the home. There are no prepayment penalties for paying off the loan early
>> 100% FREE REVERSE MORTGAGE PROFILE - Satisfaction Guaranteed.
