reverse_mortgage_loan_when_is_it_due
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reverse_mortgage_loan_when_is_it_due [2013/08/13 19:11] (current) jan793 created |
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| + | The loan comes due when the borrower passes, sells the house, fails to keep the taxes or insurance current, or moves out of the house for more than 12 consecutive months. Once the mortgage comes due, the borrower or heirs of the estate have an option to refinance the home and keep it, sell the home and cash out any remaining equity, or turn the home over to the lender. Once a [[http://bellaterra40.livejournal.com/1851.html|reverse mortgage]] is called due and payable, the borrower (or their heirs) can possibly be granted time extensions by the lender to give them up to one year to make this decision. | ||
| + | But, in contrast, the senior with a reverse mortgage can never owe more than the home is worth and they cannot pass on any debt from the [[http://bellaterra40.livejournal.com/1851.html|reverse mortgage]] to their heirs. (One of the reasons that these are not popular is because children or heirs get a little ticked that nothing will be left for them.) | ||
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| + | By now, most adults have heard of reverse mortgages, but many are uncertain as to what these loans entail. What is a reverse mortgage? In a nutshell, these loans are unique loans designed to help seniors, over 62 years of age, access a portion of the equity in their home. | ||
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| + | In a [[http://bellaterra40.livejournal.com/1851.html|Reverse Mortgage]], you are lending yourself money from the value of your home, with a large up-front fee going to the company administering the loan for you. | ||
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| + | -This is a common comment about Reverse Mortgages. But there are very few drawbacks. The biggest complaint is the cost, however almost half the cost is for the mortgage insurance that provides the safeguards put in place by HUD. | ||
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| + | To be eligible for a reverse mortgage, you must be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. | ||
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| + | The demand for [[http://bellaterra40.livejournal.com/1851.html|reverse mortgage]] courses has increased over the past few years brought about by the increase of the number of properties being foreclosed. The onset of the financial crisis in the United States and in other parts of the world has caused the general public to lose much of their purchasing power and ability to meet their financial obligations. As a result, there has been an increase of foreclosures that have occurred where homeowners had to face the disheartening reality of losing their home due to their inability to pay. This has prompted more and more people trying to find ways and means to prevent a foreclosure from happening. | ||
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| + | Reverse mortgages allow homeowners aged 62 and over to convert home equity into cash while living at home for as long as they wish. Borrowers continue to own their homes, and do not need to make any monthly payments. Instead, they can choose to receive the funds as a lump sum, line of credit, or monthly payment. The loan comes due only when the last borrower moves out, dies, or sells the home. | ||
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| + | Several customers also concern themselves with going into their home equity too early. Funding against one's collateral is obviously a threat. To decrease this risk, consumers are told to take into account whether now's the correct time to get a loan. Nevertheless, it's very important to keep in mind that today's low-interest rates might not last forever. While seeking [[http://bellaterra40.livejournal.com/1851.html|reverse mortgage]] information, buyers must carefully determine the best time to acquire a loan. | ||
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| + | A reverse mortgage is exactly what the title states, the reverse of a standard mortgage. With a standard mortgage, the borrower makes monthly payments to the lender in order to pay back the loan that the lender originally lent to the borrower for the purchase or refinance of the house. This payment includes interest that the lender charges the borrower for the loan. In a [[http://bellaterra40.livejournal.com/1851.html|reverse mortgage]], on the other hand, the lender makes monthly payments to the borrower. However, in both a standard and reverse mortgage, the lender secures the loan amount by using the house as collateral. | ||
reverse_mortgage_loan_when_is_it_due.txt · Last modified: 2013/08/13 19:11 by jan793
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