The Reverse Mortgage programs have been improved with time. The Federal Guidelines for Reverse Mortgages have been refined and laws changed by Congress to protect Seniors. These changes have been positive in nature and increased options for Reverse Mortgage Programs.
These are ideal for certain situations and can be very beneficial. For the individual or family that have large equity in their home and little other resources in retirement, it can be very helpful. The age of the Borrower must be over 62 years of age. The Borrowers must maintain current the Homeowner’s Insurance and the Property Taxes. Team USA Mortgage cautions to be very careful and make sure that the Reverse Mortgage Programs are to your benefit and meet your needs.
These are specialty programs. They are a withdraw of equity from the family home. The equity can be taken as: 1) A HELOC Home Equity Line of Credit. 2) A onetime equity withdrawal. Or 3) Monthly installment payment to the Individual/family.
The Reverse Mortgage usually requires no payments for the term of the loan. The term is dictated by the life of the Borrower or living status. If the Borrower dies, the family has the option to payoff the mortgage, refinance it, sell the property, or walk away and let the Lender take possession of the property.
If the Borrower is moved out of the home for more than six months, then the repayment options to the Lender again are initiated and the family must choose an option for repayment.
This is a simple summary of the general terms of a Reverse Mortgage. There is a lot more information that should be reviewed before selecting this as a financial package.