Reverse mortgages for seniors can be extremely beneficial after retirement to ensure financial security. Financial security is something that once people did not question, but after the economy took a dive, it has become rather imperative to do so. Either this is a loan taken out against the equity of a home, which you do not pay back until the last homeowner moves, dies, or you sell the home. Without the worry of monthly payments, seniors age 62 and older are able to use their home’s value by turning it into cash. Several methods are used to pay homeowners for their reverse mortgages, such as single lump sum, monthly cash advances, credit line, or a combination of methods.
Reverse Mortgages for Seniors Explained
Income qualifications for reverse mortgages for seniors are simple due to no monthly repayments. There is no minimum income required, and even with no income, you can qualify for a reverse mortgage. The lender sends cash to the homeowners with no repayments expected while the homeowners reside in the house. Equity in the home is reduced while the debt grows.
With reverse mortgages for seniors, home ownership remains with you, the senior. Homeowners insurance and property tax payments are your responsibility and must be maintained. Lenders want repayment of their loan, not your house.
How Much Cash Will Be Received?
The amount of cash you receive with reverse mortgages for seniors is dependent on more than one factor, such as which program you choose. Not all reverse mortgage programs cost the same. Another factor is which cash advance you choose to receive. The amount of cash you can receive is also dependent on your home’s value and your age. You are able to receive more cash for homes with more value. In addition, the older you are, the larger amount of cash you can receive.
Repayment of reverse mortgages for seniors is due in full upon the sale of the home, if the last borrower dies, or if they move to a new residence. If homeowner’s insurance or property taxes are not maintained, the loan may also become due. Click here for more details.