mortgage simple definition: Reverse Mortgage

Reverse Mortgage

Reverse Mortgage. More Rules for the Reverse Mortgage

Reverse Mortgage video duration 2 Minute(s) 25 Second(s), published by Capital Forever on 22 09 2019 - 20:16:30.

What is a reverse mortgage? A reverse mortgage is a loan for someone 55 plus, that allows you to get money from your home equity without having to sell your Rick May, Reverse Mortgage Specialist, explains the differences between a Reverse Mortgage Line of Credit and traditional home equity lines of credit
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If you're 55 or older, you can borrow as much as 55 per cent of the value of your home
Principal and compound interest don't have to be paid back until you sell Reverse mortgage is NOT appropriate for everyone
It's an option for a homeowner to get into a home that is more suitable for their stage in life
There must be Incredible
The government wants to make it harder for people to get a reverse mortgage
Take a look at this case with me, and take advantage of the situation!

What is a reverse mortgage? A reverse mortgage is a loan for someone 55 plus, that allows you to get money from your home equity without having to sell your home. How can I get this? If you have significant home equity in your property, you may be able to borrow against the value of your home. How do I qualify? When you apply for a reverse mortgage, your lender will consider your age, and the age of your spouse, if they are registered on the title of your house. Also, the location of your home, its overall condition, type of property and it's appraised value. How does this work? You can convert your home equity into cash and it doesn't require any conventional mortgage payments. A senior can continue living in their home provided they continue to pay property taxes, maintenance and insurance costs. Why this is useful? A reverse mortgage can provide cash for seniors to pay for home repairs or improvements, help with regular bills and debts, and cover healthcare costs. What are the pros? You don't have to make any regular loan payments. You may turn some of the value of your home into cash, without having to sell it. You don’t have to pay tax on the money you borrow. This money does not affect your old age security or guaranteed income supplement benefits. What are the cons? Interest rates are higher than most other types of mortgages. The equity you hold in your home may go down as the interest on your loan adds up throughout the years. Your estate will have to repay the loan and interest in full within a set period of time when you die. There may be less money in your estate to leave to your children or other beneficiaries. Costs associated with a reverse mortgage may be higher than a regular mortgage or other lending products.