Reverse Mortgage 101
A reverse mortgage can help save your home AND give you some monthy income. If you are considering reverse mortgages for seniors, it’s important to know the basics including the requirements and how much money is actually available for seniors. Learn the requirements for reverse mortgages to find out if you qualify. The requirements and specifics about reverse mortgages can vary from state to state, but there are some basic things you should know.
Qualifications:
*Borrowers must be at least 62-years-old
*The older you are, the more lenient requirements are
*If you have any existing mortgages, you must use the proceeds from a reverse mortgage to pay them off before you can use your reverse mortgage proceeds for anything else.
*After existing mortgages are paid, proceeds from a reverse mortgage may be used for any purpose
*Not all types of housing qualify for a reverse mortgage
*Some properties, (like mobile homes), must meet specific requirements in order to qualify for a reverse mortgage.
*The cost of financial counseling, which is required, must be paid by the potential borrower and usually costs about $100.
*The lending limit for a reverse mortgage is $625,500.
*The maximum loan origination fee for a reverse mortgage is $6,000
*Once the borrower passes away, the heirs to the estate have one year to settle the reverse mortgage by selling the property or refinacing.
The amount of the proceeds available from a reverse mortgage varies and is determined by several factors, including the age of the borrower, the current interest rate, an appraisal of the property, any existing liens on the property, the property value, the HUD national loan limit, and any known health or safety issues on the property.
With the facts about reverse mortgages, you will be better prepared in your search for the right mortgage.
Reverse mortgages can save your home and give you a better quality of life, find information on reverse mortgages explained at reversemortgageproscons.com
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