Most people are nervous about new financial products such as a Reverse Mortgage, but that
is because you don’t understand it. Most of the people who know less about a Reverse Mortgage
will be ready and willing to tell you all about it, even though they know less than you do.
Thank them for their help, and move on without their help.
Let’s look at the Reverse Mortgage and how you qualify to get one. You , and or your spouse,
must be 62 years of age and own your residence, whether it is a house, town house, 2-4 units
etc, Once we determine the age and the equity you hold on your residence we can work out the
formula. The formula is made up of your age and the equity in your house. That will tell you how much money you will get from the Reverse Mortgage. Once you know that you can choose a lump sum, a payment yearly and in either case you could also get a letter of credit.
YOU WILL NOT HAVE TO PAY THE MORTGAGE BACK UNTIL YOU LEAVE THE RESIDENCE.
You, the owner, will receive all of the equity that will be in the house when you are ready to leave.
The interest that you didn’t pay during the term of the lease will be deducted from the amount of
equity is available. The sky is the limit, but the it doesn’t work the other way. If the house didn’t
gain enough equity during the years you live in it the lender only gets anything left over from the
owner and never will their be a penny taken from the owner to help cure the loss the lender will take.
The only other monies from the borrower to the lender is the yearly property tax and fire insurance.
There are other ways to make money in this type of mortgage, and they will be explained next.
Reverse Mortgage Evaluation, Reverse Mortgage Valuation