If you are thinking about a reverse mortgage; it is important to have some vital information about the process. The reverse mortgage is a process that enables you to withdraw some of the equity in your home. Many of people use it to improve their homes, meet some unexpected expenses or even to supplement social security.
The information about the mortgage is vital when you are making your decision whether it is fit for you. You need first of all to know what it is before you make that decision. A a reverse mortgage is a type of loan that allows you to transform a portion of the home equity into cash. The beauty of the reverse mortgage is that you do have to start repaying until you stop living in the same house or you fail to repay the original mortgage.
May be you will then want to know whether you qualify for such a mortgage. The first requirement is to be a homeowner, and the other is to be not less than sixty-two years of age. You should have minimal amount of mortgage remaining or be a homeowner outright. You have to be using the home as your residence, have cleared the loan or with little balance that can be paid for using the reverse mortgage and also show evidence of income to enable you to pay the other loan.
For you to qualify for this kind of loan is not a must that you used insured mortgage to purchase the home. Another thing you may be asking yourself s whether your home can qualify for this kind of mortgage. You need to be a single family occupier of the home for you to qualify. Are you asking yourself the different between a reverse mortgage loan and a home equity loan.
What happens with a home equity, the borrower must make monthly payments on the principal and the interest. It also includes the payment of taxes, utilities, and insurance premiums. If you have to sell your house, you must be prepared to pay all the mortgage at the point of selling. That means before you can transfer the house to the new buyer, you must clear your mortgage. A person selling the home whether spouse or child, will have to pay the loan first and the remaining amount is what they will have for their use. The amount of money differs from borrower to borrower, and it depends on some factors. One of the elements is the age of the borrower. Another one would be if the spouse cannot qualify to borrow.