The Benefits Of A Reverse Mortgage Loan

By: Ron Henson

A reverse mortgage is becoming an increasingly popular lending option for older Americans. Reverse mortgages let homeowners over the age of 62, the ability to transform a portion of their homes’ equity into ready cash. This article will give a small synopsis of this type of mortgage.

This type of mortgage gives a feeling of additional security to seniors desiring extra retirement income Individuals may receive payments on a term, tenure or line-of-credit basis.. No repayment is necessary unless the owner sells the home or moves out. When either of these two conditions is met, the homeowner is then required to pay back the cash they received from the reverse mortgage. This repayment includes interest and other fees. Any equity that remains is the property of the homeowner.

In order to be HUD eligible for a reverse mortgage loan, an individual must obviously own the home in question, must be 62 years or older, own the home outright, or have a mortgage balance low enough so that the mortgage balance can be paid in full at closing with the proceeds from the reverse loan. The individual must also go through HUD approved counseling.

Reverse mortgages can be a great option for older Americans.. They provide extra income that often helps older Americans meet their financial needs. It is an extremely attractive option for individuals who plan to stay in their homes indefinitely, because the loan does not have to be repaid unless the individual moves out of the house.

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