Juhani Tontti asked:
Most home types are accepted. The qualification terms are flexible, because the target of the U.S.Government was to offer this chance to as many seniors as possible. If a senior is at least 62 years old, owns a home, where he has equity left, he will qualify. That is the core, how reverse mortgages work.
1. How Does A Lender Pay You?
This is an important question, when you think how reverse mortgages work. The idea is to help you with your financial needs and that means that you will decide, how the lender pays you. It may sound funny, but you will not pay anything back month after month, but only when the loan will be closed.
Depending on your needs, the lender will pay you as a lump sum, as monthly installments, as a credit line or as a combination of some or all of these. You can also decide, how many months you will take the money or how big lump sum you need and to stop there.
2. How Much Can You Get?
I cannot give you an exact figure, because the sum depends on your age, on the appraised value of your home and on the interest rates. But we can say, that the older you are, the more expensive is your home and the lower is the interest rate, the more you can get. There is a loan ceiling of $ 625.000.
3. Does The Terms Change Over Time?
These are the items, which are included into the senior reverse mortgage: compulsory mortgage insurance, origination fee, title insurance, the title, county recording and attorney fees, the real estate appraisal, the survey and the monthly service fee.
According to my knowledge at least the interest rate will fluctuate, if you have chosen a loan with a variable interest rate, but if you will choose a fixed rate loan, then the whole package will remain as such.
4. How Many Borrowers Are Accepted?
This is an important question especially for couples. Also in this respect a senior reverse mortgage is flexible, because it accepts altogether three owners and borrowers. And it is important to note, that these senior must not be relatives, but all must fulfil the qualification, i.e. to be at least 62 and to be owners of the home.
5. When Will You Pay Back?
The reverse loan differs from the usual loan in that respect, that nothing will be paid back on the monthly basis, because the idea is to arrange more disposable money to seniors. So all expenses plus the loan capital will be paid back, when the loan will be closed. This happens, when the last owner dies or moves permanently away.
Rafael
Most home types are accepted. The qualification terms are flexible, because the target of the U.S.Government was to offer this chance to as many seniors as possible. If a senior is at least 62 years old, owns a home, where he has equity left, he will qualify. That is the core, how reverse mortgages work.
1. How Does A Lender Pay You?
This is an important question, when you think how reverse mortgages work. The idea is to help you with your financial needs and that means that you will decide, how the lender pays you. It may sound funny, but you will not pay anything back month after month, but only when the loan will be closed.
Depending on your needs, the lender will pay you as a lump sum, as monthly installments, as a credit line or as a combination of some or all of these. You can also decide, how many months you will take the money or how big lump sum you need and to stop there.
2. How Much Can You Get?
I cannot give you an exact figure, because the sum depends on your age, on the appraised value of your home and on the interest rates. But we can say, that the older you are, the more expensive is your home and the lower is the interest rate, the more you can get. There is a loan ceiling of $ 625.000.
3. Does The Terms Change Over Time?
These are the items, which are included into the senior reverse mortgage: compulsory mortgage insurance, origination fee, title insurance, the title, county recording and attorney fees, the real estate appraisal, the survey and the monthly service fee.
According to my knowledge at least the interest rate will fluctuate, if you have chosen a loan with a variable interest rate, but if you will choose a fixed rate loan, then the whole package will remain as such.
4. How Many Borrowers Are Accepted?
This is an important question especially for couples. Also in this respect a senior reverse mortgage is flexible, because it accepts altogether three owners and borrowers. And it is important to note, that these senior must not be relatives, but all must fulfil the qualification, i.e. to be at least 62 and to be owners of the home.
5. When Will You Pay Back?
The reverse loan differs from the usual loan in that respect, that nothing will be paid back on the monthly basis, because the idea is to arrange more disposable money to seniors. So all expenses plus the loan capital will be paid back, when the loan will be closed. This happens, when the last owner dies or moves permanently away.
Rafael
