If you are interested in reverse mortgage, there are some important information that you need to know about the whole process. The reverse mortgage can be used to help you access some of the equity in your home. Most people will use the reverse mortgage to pay some unexpected bills like the hospital bills, home improvement or supplementing of social security.
It is important to get the right information before you decide whether it suits you. The first step is to know what it is before you decide whether it is what you want. A a reverse mortgage is a type of loan that you get on top of the existing home mortgage. The beauty of the reverse mortgage is that you do have to start repaying until you stop living in the same house or you fail to repay the original mortgage.
The other question you may want to ask is who qualifies for such a loan? The first thing is to be a homeowner and one who is sixty-two years of age and above. You should have minimal amount of mortgage remaining or be a homeowner outright. You have to be using the home as your residence, have cleared the loan or with little balance that can be paid for using the reverse mortgage and also show evidence of income to enable you to pay the other loan.
You can also apply for this kind of mortgage even when you did not purchase your house with insured mortgage. You may be asking yourself whether your home is among those that can qualify for the kind of loan. You need to be a single family occupier of the home for you to qualify. May be you are wondering what could be the difference between a reverse mortgage and a home equity loan.
The borrower of the equity loan pays both the principal and the interest on monthly basis. The payment also includes taxes, and insurance premiums. You may also d to know that you have to clear your loan if you were to sell the house. That means for you to sell the house and transfer the ownership to a new buyer, you must first clear your loan. If you have left the house to your spouse or heir, then on selling the house, they will need to repay the loan and the remaining balance shall be for their use. The amount for each borrower is different depending on some factors. One of the elements is the age of the borrower. The no eligible spouse is another factor that can affect the amount.