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Reverse mortgage is one of the most unique forms of loans, and by far, the most attractive one in the market. Right off the bat, we have to tell you that applicants to this kind of loan is limited only to people with a home to use as security, and that the homeowner should be 62 years and above. If you meet both criteria, then you are free to apply for a reverse mortgage from your local lending company.
Advantages of reverse mortgage over other mortgages
1. A homeowner who wants to apply for this type of loan does not even have to have a monthly income prior, during and after the loan application process. The value of the home is sufficient cause for the approval of the loan. Work records, current financial status and credit rating are usually not scrutinized as much, as compared to other loan schemes. However, a thorough inspection of the house and multiple appraisals are required to complete the processing of the loan.
2. Homes can also range from a large home, to a single storey bungalow and even to a small condo unit. Just as long as there are documentations to prove the homeowner’s legal and single ownership of the property, the reverse mortgage loan has every potential of being approved. Joint properties can be processed as well as long as both signatories agree to the use of the said property as loan security.
3. A third advantage to this type of loan is that the lending companies are the ones who provide subsidence to the successful applicant. This means that the homeowner do not have to make monthly payments to the lending company. The subsidence only ends when the loan matures. Payout options range from being provided one large sum of cash; to a monthly allowance of a specified amount; to a credit line; to a combination of two or all pay-out schemes. In other cases, the homeowner can specify where the money should go: as with monthly contributions to their retirement funds or Social Security accounts.
It is easy enough to compute for the likely payout that a homeowner is to get from a lending company. There are now tools like mortgage payment calculator and mortgage rate calculator available over the World Wide Web that makes it easier for loan applicants to find out for themselves which loans would do them the most service. 4. As such, there is no pre-appointed time for the maturity of the loans. The subsidence only stops when: the homeowner has passed on; and / or can no longer live in or take care of the home. The latter can be cited when the homeowner is moved to a care facility like a nursing home or a special care home.
5. Another advantage to the acquisition of a reverse mortgage is the relation of the mortgage rate or mortgage payment to the loan applicant’s age. Usually, the higher the seniority of the applicant, the higher subsidence he or she is to get. This is of course, in correlation with the other market factors, like state property tax, current interest rates of the loan market, etc.
By: Apostol Lucian
Advantages of reverse mortgage over other mortgages
1. A homeowner who wants to apply for this type of loan does not even have to have a monthly income prior, during and after the loan application process. The value of the home is sufficient cause for the approval of the loan. Work records, current financial status and credit rating are usually not scrutinized as much, as compared to other loan schemes. However, a thorough inspection of the house and multiple appraisals are required to complete the processing of the loan.
2. Homes can also range from a large home, to a single storey bungalow and even to a small condo unit. Just as long as there are documentations to prove the homeowner’s legal and single ownership of the property, the reverse mortgage loan has every potential of being approved. Joint properties can be processed as well as long as both signatories agree to the use of the said property as loan security.
3. A third advantage to this type of loan is that the lending companies are the ones who provide subsidence to the successful applicant. This means that the homeowner do not have to make monthly payments to the lending company. The subsidence only ends when the loan matures. Payout options range from being provided one large sum of cash; to a monthly allowance of a specified amount; to a credit line; to a combination of two or all pay-out schemes. In other cases, the homeowner can specify where the money should go: as with monthly contributions to their retirement funds or Social Security accounts.
It is easy enough to compute for the likely payout that a homeowner is to get from a lending company. There are now tools like mortgage payment calculator and mortgage rate calculator available over the World Wide Web that makes it easier for loan applicants to find out for themselves which loans would do them the most service. 4. As such, there is no pre-appointed time for the maturity of the loans. The subsidence only stops when: the homeowner has passed on; and / or can no longer live in or take care of the home. The latter can be cited when the homeowner is moved to a care facility like a nursing home or a special care home.
5. Another advantage to the acquisition of a reverse mortgage is the relation of the mortgage rate or mortgage payment to the loan applicant’s age. Usually, the higher the seniority of the applicant, the higher subsidence he or she is to get. This is of course, in correlation with the other market factors, like state property tax, current interest rates of the loan market, etc.
By: Apostol Lucian