Understanding Reverse Mortgages
Are you planning to retire? Or is retirement knocking at your door? Rest assured there are some mortgage schemes in the market today customized specifically for the retirees. A good example, although not a very nice one, is the pension scheme which to say the least does not guarantee you some financial stability as you enjoy your sunset years.
A favorite mortgage scheme to many retirees is the reverse mortgage, if not for anything else, because it allows you to earn as you stay in your home; in other words, you are getting paid to remain in your home forever. If you are above the age of 62, you definitely have to give this serious thought and consideration.
Thanks to the competition that the mortgage industry is receiving today, there are very many lenders having very attractive offers and incentives in the market. Note that even though the rate of interest will definitely be fixed, some lenders waive the origination fee and other service charges.
Also, as a homeowner, you can benefit greatly from your home equity in that if you have a good equity, you can get a hefty amount of cash. Of equal importance to note however is that the amount of money you get will be determined by several factors such as your current rate of interest, your home value, and more importantly your age.
The good thing with reverse mortgages is that the lender does not dictate to you how or how not to use the money you get, meaning you can take that dream holiday tour, you can pay an emergency medical bill, or you can finance home improvement and repair etc.
With that being said, if you are considering reverse mortgages, there are several qualifications that you must meet. For one, you need to be at least 62 years of age, you need to solely own the property in question that you plan to commit to the reverse mortgage plan, you need to live in the home in question for at least 6 out of 12 months each year.
If you meet all requirements, you will not be expected to show proof of your credit, or make any monthly payments. If you are a senior citizen who wants to enjoy your sunset years in happiness and bliss before you leave for your final resting place, you can always enjoy a stable monthly income and subsequently plan for your future as the income is reliable and predictable.
A reverse mortgage is a great option for a retiree, at least when compared to the volatile and unpredictable stock markets.
A favorite mortgage scheme to many retirees is the reverse mortgage, if not for anything else, because it allows you to earn as you stay in your home; in other words, you are getting paid to remain in your home forever. If you are above the age of 62, you definitely have to give this serious thought and consideration.
Thanks to the competition that the mortgage industry is receiving today, there are very many lenders having very attractive offers and incentives in the market. Note that even though the rate of interest will definitely be fixed, some lenders waive the origination fee and other service charges.
Also, as a homeowner, you can benefit greatly from your home equity in that if you have a good equity, you can get a hefty amount of cash. Of equal importance to note however is that the amount of money you get will be determined by several factors such as your current rate of interest, your home value, and more importantly your age.
The good thing with reverse mortgages is that the lender does not dictate to you how or how not to use the money you get, meaning you can take that dream holiday tour, you can pay an emergency medical bill, or you can finance home improvement and repair etc.
With that being said, if you are considering reverse mortgages, there are several qualifications that you must meet. For one, you need to be at least 62 years of age, you need to solely own the property in question that you plan to commit to the reverse mortgage plan, you need to live in the home in question for at least 6 out of 12 months each year.
If you meet all requirements, you will not be expected to show proof of your credit, or make any monthly payments. If you are a senior citizen who wants to enjoy your sunset years in happiness and bliss before you leave for your final resting place, you can always enjoy a stable monthly income and subsequently plan for your future as the income is reliable and predictable.
A reverse mortgage is a great option for a retiree, at least when compared to the volatile and unpredictable stock markets.
[posted by : OFP on Jun. 02, 2011]
TAGS: mortgage, reverse mortgage, debt, retiree