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. You need first of all to know what it is before you make that decision. A reverse mortgage is a special type of house loan that enables you to convert some of the equity into cash. 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 have to own your home out rightly, or you have a small surplus of mortgage remaining. 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.
For you to qualify for this kind of loan is not a must that you used insured mortgage to purchase the home. Another thing you may be asking yourself s whether your home can qualify for this kind of mortgage. The criteria is that the home should be occupied by a single family. You may be interested to know what is 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. If you have to sell your house, you must be prepared to pay all the mortgage at the point of selling. That means before you can transfer the house to the new buyer, you must clear your mortgage. A person selling the home whether spouse or child, will have to pay the loan first and the remaining amount is what they will have for their use. Many factors that can influence the amount that you need to borrow. The the first determinant factor is the age of the person borrowing. Another factor is a no eligible spouse.