Mortgage

Truth is that for most seniors a reverse mortgage is a last resort. Most companies market reverse mortgage information wrong. The truth is that when you do a reverse mortgage you will not be leave your heirs much equity in your home, if any, when they sell it. They will have one year to sell your home. Any money left over after your remaining balance is paid will be given to your heirs. The best way to decide if a reverse mortgage is right for you is weather or not you can continue to pay your mortgage payment after retirement. If the payment will put a stress on your monthly budget, than a reverse mortgage is probably the way to go. You will need your mortgage balance near or below 50% to qualify for a reverse mortgage. Once you decide and get a reverse mortgage there is no going back. You can but the fees you pay to get a reverse mortgage are high and you will loose a lot of equity. A lot of seniors are worried about not owning there home after a reverse mortgage.

Truth is that if you owe the bank money on your home, you don’t actually own your home anyway. Please take the time to read everything you can about the entire mortgage process before making your final decision. Getting reverse mortgage information from friends and family can be misleading. Get the reverse mortgage information from the source, HUD.

How much can you get with a reverse mortgage?

The amount depends on:

• The age of the youngest borrower
• Current interest rate
• Lesser of the appraised value of your home.
• The Mortgage Insurance Premium option you choose.

Reverse Mortgage vs Home Equity Line of Credit

With a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you will have to make monthly mortgage payments. The reverse mortgage is available regardless of your current income. The amount you can borrow depends on your age, current interest rate, and the appraisal value, sales price or FHA’s mortgage limits, whichever is less. The more valuable your home is, the older you are, the lower the interest, the more you can borrow.

With a reverse mortgage information, you don’t make monthly principal and interest payments, the lender pays you according to the payment plan you select. Remembe, you still are required to pay your real estate taxes, insurance.. With a reverse mortgage you cannot be foreclosed or forced to vacate your house because you “missed your mortgage payment.” Thank you for reading about out reverse mortgage information.

By Chris Waller