Lender`s promise of no more monthly payments and very fast cash makes the reverse mortgage loan one of the most attractive and beneficial alternative for cash-strapped seniors. For homeowners who are over the age of 62 in the US, a reverse mortgage allows them to covert the equity they have acquire over the years in their home to finance their current living expense, do some home improvement, pay off medical bills, and aid with other needs.
A Reverse mortgage is the opposite of a traditional conventional mortgage. Instead of the homeowner borrowing money from the lender for their home, the lender pays the homeowner based on their home's current equity. The home must be the primary place of residence. If the homeowner dies, sells the home or otherwise changes their primary residence the initial loan must be paid back together with the accrued interest, usually through the sale of the property. Since the proceeds of a reverse mortgage are classified as a loan instead of income, they are Non-Taxable, another great benefit.
The mortgage principal amount is anywhere between 10 to 40 percent of the home appraised value and is in direct relation of the home owner's age, current interest rates and the property value.
Since about 85% of the average citizen's asset are tied up in their home, and seniors may have little or no income from social security, this is a great financial opportunity for some people. When considering whether or not to get a reverse mortgage loan it is very important to understand the whole process and some of the risk that maybe involved. The types of reverse mortgages available and their terms are different for each lender. It never hurts to seek professional advice of a third party such as a lawyer, talk to a Trusted Lenders Network representative (www.trusted-lenders.com), or RefinanceTalk (www.
RefinanceTalk.com) representative,who all give great advice when it comes to the mortgage process, prior to getting started with the reverse mortgage process.
Advice on Getting a Mortgage Quote Online
Getting a mortgage loan quote from an online loan quote specialist has many advantages and benefits. Online mortgage quotes are quick and easy. The process can be done within 5 minutes at home.
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