Know how Reverse Mortgages Work and How Can You Avail Them Today!
A Reverse Mortgage is simply a loan taken against your house instead of selling it. You can borrow up to a certain percentage of the current value you own of your house. You need not repay your loan until you move out, sell it or in case of your demise, where the loan gets transferred in the name of the beneficiary. The amount borrowed through Reverse Mortgages can to be used to pay off the loans or other mortgages on your house and then, the remaining amount could be used to pay off your debts, dues, healthcare expenses, insurance, or your day to day expenses as well.
Unforeseen circumstances may arise giving financial shocks at critical situations. Along with all the sources available for borrowing, Reverse Mortgage could serve as a suitable option. Here’s why :
- You need not sell your house
- You are safe even if the market declines
- You need not pay monthly mortgage payments
- You can incur your on-going costs/ debts
- It’s a long term solution.
Eligibility for a Reverse Mortgage
In order to be eligible for a reverse mortgage, you need to be a minimum of 55 years of age and own a house. In case your partner is also the owner of the property, then the above requirement of age applies to them as well.
Characteristics That Reflect the Amount of Your Reverse Mortgage :
- Your age
- Your location
- The condition of your house and its appraisal value
- The type of house (apartment/ bungalow)
- Your lender
Ways You Can Recieve the Reverse Mortgage Money:
- Taking all the money in one time as a lump sum amount
- Taking a part of the money upfront and taking the remaining in installments
How to Reimburse Your Reverse Mortgage Amount?
You can repay your loan along with interest in full, anytime you want. The interest keeps adding overtime. You need not repay your loan in installments.
In case, your house in under only your name, after your demise your estate will have to repay your loan. And in case, your house is under yours as well as your partner’s name then the loan will have to be repaid after the death of the last surviving holder. Along with this, the other reasons to repay your loan would be in case you move out or sell your home.