An Easier Retirement Could be Yours. Therefore It Makes Sense to Find Out What are the Rules on a Reverse Mortgage. See Them Here and Decide idf a Reverse Mortgage is for You
Many seniors find that their social security, pension or other funds may not be enough to cover the expenses they have in their retirement years. For that reason many seniors consider taking out a reverse mortgage on their home to make their later years more financially stable. But what exactly are the rules for receiving and maintaining a reverse mortgage?
Qualifying for a Reverse Mortgage
The rules of a reverse mortgage are different than those of a conventional mortgage. With a conventional mortgage, the consumer makes monthly payments in order to build equity in their house. But, with a reverse mortgage senior citizens are able to draw on the equity that has built up in their house. You must be at least 62 years old in order to qualify for a reverse mortgage. Another difference between a conventional mortgage and a reverse mortgage is that there is no qualifying income or credit requirements. After receiving the reverse mortgage, seniors are able to receive payments at regular intervals or a lump sum payment. The senior is able to use the money on anything they want which may be home repairs or daily necessities.
Is a Reverse Mortgage Right for You?
A reverse mortgage is not for everyone and seniors should take a good look at the pro’s and cons of taking out a reverse mortgage to see if it is right for them. For example if someone wants to leave their property to their heirs after they have passed on , they should be aware that that their heirs will be responsible for paying the money back to the lender like Denver mortgage company. They should inquire if their heirs are in a position to pay back the loan after they’re gone. In some cases where the heirs plans on selling the house, a reverse mortgage may be a good option. Of course the house will have less equity because of the reverse mortgage loan. If the value of the house increases this will add to the equity in the house.
Counseling is Mandatory
To help prevent seniors from getting into a financial situation that they don’t understand it is necessary for every borrower to take part in counseling from an agency that is approved by Housing and Urban Development agency (HUD). In addition to this counseling seniors should contact other reputable sources to reassure they know exactly what they are getting into.
