Orlando reverse mortgage specialist will explain benefits of best reverse mortgage lenders in Orlando offering lowest mortgage reverse rates and loans. http://reverse-mortgage.weebly.com/
Orlando reverse mortgage calculator, information, best rates, & loans. What is a reverse mortgage & how does reverse mortgage work? Learn about mortgage reverse loans pros and cons and information.
What is a Reverse Mortgage?
A reverse mortgage is a loan that allows senior homeowners to access a portion of their home's equity to supplement their retirement income. The loan generally does not have to be repaid until the last surviving homeowner on title permanently moves out of the property or passes away. At that time, the estate can repay the balance of the reverse mortgage loan or sell the home to pay off the balance. All remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage loan.
Eligibility for a reverse mortgage loan
To be eligible for a Home Equity Conversion Mortgage (HECM) reverse mortgage loan, all homeowners must be at least 62 or older. The home must be owned free and clear or all existing liens would need to be satisfied. If there is a mortgage balance, it can be paid off completely with the proceeds of the reverse mortgage loan at the closing.
Eligible home types
Many home types are eligible: one to four unit owner-occupied home approved townhomes and condominiums and some manufactured homes.
Difference between a reverse mortgage and a home equity loan
With traditional loans such as a home equity loan, a second mortgage, or a home equity line of credit (HELOC), the homeowner must still make monthly payments to repay the loans. However with a reverse mortgage loan, instead of making monthly payments to the lender, the homeowner receives payments from the lender.
With a reverse mortgage loan the amount that may be borrowed is determined by a formula that considers the borrower's age, the current interest rate, and the lesser of the appraised value of the home, sale price or the maximum lending limit. Generally the higher the value of the home the higher the loan amount will be, up to the FHA's maximum lending limits.The loan is typically not due as long as the homeowner lives in the home; however, the homeowner is still responsible for paying real estate taxes, insurance, and maintenance. Orlando reverse mortgage specialist will explain benefits of best reverse mortgage lenders in Orlando offering lowest mortgage reverse rates and loans.
When the loan becomes due
Typically, the loan does not become due as long as one of the homeowners lives in the home as their primary residence and maintains the home in accordance with FHA requirements such as keeping taxes and insurance current, and maintaining repairs. http://youtu.be/0Dv4Gu4Rk1Q
In the event of death or the home ceases to be the primary residence for more than 12 months, the homeowner's estate can choose to repay the reverse mortgage loan and keep the home or put the home up for sale in order to repay the loan.
If the equity in the home is higher than the balance of the loan, the remaining equity belongs to the estate.
If the sale of the home is not enough to pay off the reverse mortgage balance, the heirs or estate will not be responsible for the difference. No other assets are affected by a reverse mortgage. For example, investments, second homes, cars, and other valuable possessions cannot be taken from the estate to pay off the reverse mortgage. Orlando reverse mortgage calculator, information, rates, & loan. What is a reverse mortgage & how does reverse mortgage work? Learn about mortgage reverse loans pros and cons and information.
Available loan proceeds
The amount that is available depends on many factors, such as: age, current interest rate, and the lesser of the appraised value of the home, the sale price or FHA maximum lending limits. Use our reverse mortgage calculator to estimate how much you could receive.
Distribution of money from a reverse mortgage loan
There are several ways to receive the proceeds from a reverse mortgage loan:
Lump sum -- a lump sum of cash at closing
Tenure -- equal monthly payments as long as the homeowner lives in the home
Term -- equal monthly payments for a fixed period of months
Line of Credit -- draw any amount at any time until the line of credit is exhausted
Any combination of those listed above.
Orlando reverse mortgage specialist will explain benefits of best reverse mortgage lenders in Orlando offering lowest mortgage reverse rates and loans.