Reverse Mortgage Pros
As mentioned above, the goal of a reverse mortgage is to help seniors stay in their primary residence they are comfortable in. The terms of the loan direct that certain responsibilities are met to avoid foreclosure, and as long as you follow those terms, you may live in your home and hold the funds from your equity without paying a monthly mortgage payment.
There also has to be enough equity in the home to tap. To qualify for a reverse mortgage you should have an equity position of around 40 percent.
When it comes to who is eligible for a reverse mortgage, age is the first factor that matters. Homeowners must be 62 or older to take further of a reverse mortgage, and they have to use the property as their primary residence.
This is a awfully biased subject. While a reverse mortgage is not for everyone, it fills a specific need that allows countless seniors to live with peace of mind and dignity in their own home while having the financial burdens removed allowing them opportunities they otherwise would not have. YES there are costs and fees associated with reverse mortgage products that are not associated with forward mortgages. They are sometimes looked at as excessive. That’s up to each individual borrower to decide. There are so many safeguards in place, including mandatory third party counseling from a HUD ratify agency part from the lender, that its unlikely anyone would be taken advantage of.
There are a number of different ways you can take your funds – lump sum, monthly payment, line of belief you can draw from when you want or a combination of all of these. Also, different parts of the country have different ending costs and some height’ costs are much higher than others. Also, it is important to know the month and year of your origin, if you will be 65 within 180 days of the anticipated close of the loan, you would receive higher benefits than someone who just turned 64.