Reverse mortgage has been used for many people in The United States. This type of mortgage converts the equity in the home to cash while retaining home ownership. The consumer gets money from the lender and does not have to repay it for as long as he lives in his home.
A reverse mortgage is a loan available to seniors, and is used to release the home equity in the property as a lump sum or multiple payments. The homeowner’s obligation to repay the loan is deferred until the owner dies, the home is sold, or the owners leaves (e.g., into age care).
In a traditional mortgage the homeowner makes a monthly amortized payment to the lender; after each payment the equity increases within his or her property, and typically after the end of the term the mortgage has been paid in full and the property is released from the lender. In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, or a bulk payment of the available equity percentage for their age, then the debe on the property increases each month.
If a property has increased in value after a reverse mortgage is taken out, it is possible to acquire a second (or third) reverse mortgage over the increased equity in the home. But in certain countries (including the United States), a reverse mortgage must be the only mortgage on the property.
If you are interested in getting more information, have some questions or doing a reverse mortgage, we can help you decide whether a reverse mortgage is really your solution.
Call us at (954) 272-2060 or send us a brief description of your case.
