With a traditional second mortgage, or a home equity line of credit,
you must have sufficient income versus debt ratio to qualify for
the loan, and you are required to make monthly mortgage payments.
The reverse mortgage is different in that it pays you, and is available
regardless of your current income. The amount you can borrow depends
on your age, the current interest rate, and the appraised value
of your home or FHA's mortgage limits for your area, whichever is
less. Generally, the more valuable your home is, the older you are,
the lower the interest, the more you can borrow. You don't make
payments, because the loan is not due as long as the house is your
principal residence. Like all homeowners, you still are required
to pay your real estate taxes and other conventional payments like
utilities, but with an FHA-insured HUD Reverse Mortgage, you cannot
be foreclosed or forced to vacate your house because you "missed
your mortgage payment."
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1 comment:
Good article. Reverse mortgage is a nice financial instrument for the senior citizens in the country who do not have adequate retirement fund at their disposal and whose age is 62 or more . For working hard all your life, you deserve to have only all the best that your retirement years. To get more Wisconsin reverse mortgage
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