What You Should Know Concerning Reversed Mortgages.
Generally, a reversed mortgage is kind of home equity loan usually reserved for seniors or older homeowners. In this kind of mortgages, they do not have monthly payments but the loan is repaid after the borrower dies or moves out. Although they are considered the last option income source, they are becoming great plans for retirement by many homeowners. You can, however, access a good reverse mortgage from Futura Mortgage.
In reserved mortgages for seniors, the homeowner borrows money against the home. For these mortgages, they are structured in such a way that the loan is not more than the value your home. Normally, reserved mortgages work differently from other mortgages. In traditional mortgages, the borrower makes monthly installments to repay the mortgage. However, it is completely opposite to reserved mortgages. Depending on the value of the home, the lender makes payment to the borrower. The borrower could opt to get a lump sum or regular cash monthly.
When you do not intend to move on, Futara Mortgage offers you the option to access a reserved mortgage. Also, individuals who want supplement their incomes can do so through reserved mortgages. The homeowner will, however, be required to maintain the home. Reserved mortgages for seniors have some advantages.
1. Qualifying is easier.
As opposed to other traditional loans, qualifying for reserved mortgages is usually easier. It is often easier to qualify since no payments are required until the homeowner dies or leaves the home. At the same time, there are only simple requirements. For example, the homeowner must be 62 years old or more with the home being his or her primary residence, and it should be possible to maintain the property. Qualification for reserved mortgages for seniors does not depend on your income or credit score.
2. The regular mortgage repayments are not necessary.
Once the homeowner has qualified for the reverse mortgage, the lender makes regular payments to the borrower or a lump sum depending on the choice of the borrower. However, you will not pay the mortgage until the last homeowner moves out of the home. The payment you receive is also tax-free since it is not earned income.
3. You do not lose the control of your home.
Because the homeowners retain their homes, they appreciate these mortgages. At the same time, you remain in complete control of your home and you are required to pay property tax as well as homeowner’s insurance. Actually, you can even sell the home and repay the mortgage if you like.
Basically, if you feel that a reverse mortgage is ideal for you, consider Futura Mortgage.