The idea is to release a part of the home equity and to turn that into cash money with the reverse loan. A senior can take this cash either as a lump sum, as a monthly payments, as a credit line or as a combination of some or all of these depending the need he has.

If a senior has a usual mortgage left, he must first pay it away with the reverse loan, so that he will have only one type of the mortgage loan. This will release more money into monthly use, because the reverse loan will not be paid back until the loan will be closed. This happens, when the borrower will move away from the home, the home will be sold or he will die.

1. The Reverse Loan propecia generic online Is A Long Term Commitment.

If a senior will take the reverse loan when he is 62, he will have many years left with the reverse loan. When he thinks the different alternatives, one of the important cialis cheap Viagra”>Brand Viagra things is the interest rate, a variable or fixed one. When all interests will be added together, the differences between different alternatives can be big ones.

2. Is The Reverse Loan Expensive?

Yes, the reverse loan is more expensive than the usual mortgage loan. But all the future costs are known and the counselor can help to add them together in advance. The only unknown factor is the interest rate, if a senior will take a variable one.

3. How Can A Senior Use The Money?

Because the reverse loan is always taken against the equity of the home, the lender will always get his money back, if not otherwise, then the mortgage insurance will pay. The idea is that this loan type is a consumption loan, .i.e the borrower can use it how he wants.

4. Can My Spouse Become A Borrower Too?

The loan can have altogether three borrowers, but all of them must meet the qualification requirements, i.e to be at least 62 and owners of the home, which is their permanent living place. This is natural, because the guarantee will be the home. The borrowers have not to be relatives to each other.

5. What Do My Heirs Say?

You better ask during the thinking process. Naturally this will decrease the amount they will get, but the home is your property, you have paid it from your salary. I am sure, if you talk with them and make it clear that this is your only source of extra cash, which you will urgently need, they will understand and it will not come as a surprise to them.

Author Bio: Juhani Tontti, B.Sc., Marketing. The reverse mortgages are special financial products for seniors 62 and over. The idea of the reverse mortgage is to turn a part of the home equity into monthly cash money. Visit: reverse loan

Category: Finance/Credit/Loans
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