A reverse mortgage is a great financial solution for homeowners age 62 or over who want to eliminate their mortgage costs, as well as supplement their incomes. This type of loan offers many benefits, such as allowing homeowners to utilize their home equity. Although this loan is very beneficial Kamagra to many homeowners, some find that it can be expensive. But some lenders are making this type of financing much more affordable by eliminating some of the loan’s fees.

Fewer Fees Increase the Proceeds Available from this Loan

One reverse mortgage lender has decided to offer a greater incentive for borrowers who choose the lump sum as their disbursement option, which has a fixed interest rate. Soon, this lender will completely eliminate the loan’s origination fee, as well as its servicing fee. In the past, other lenders have eliminated one cost or another, but this lender is eliminating both loan costs. By eliminating these costs, eligible homeowners will be able to receive even more proceeds from their loans!

How this Loan Allows Homeowners to Use their Home Equity

In addition to the benefit of having no monthly mortgage payments, homeowners with sufficient home equity can convert their equity into cash. The amount of money a homeowner can receive depends upon his or her age, home value (which is determined by an appraisal) and current interest rates. Generally, older homeowners with higher home values will receive more loan proceeds. The money received from the loan can be used for anything the homeowner desires, such as medical bills, other payments or personal expenses.

Loan Eligibility and Requirements

To be eligible for this type of financing, a homeowner must be at least 62 years old and financing his or her primary residence. This means the homeowner must reside in the home at least six months out of the year. Because there are no monthly mortgage payments, this loan does not have any income or credit requirements, so it is simple to qualify for this type of financing. The homeowner is also required to attend loan counseling to determine if this type of financing is best for his or her needs.

In most cases, a homeowner will owe nothing on the loan for as long as he or she resides in the home unless they fail to meet the loan requirements. These requirements include staying up to date on home repairs, taxes and insurance. Viagra Jelly If these requirements are not met, the loan will become due and payable.

Even though the absence of the service and origination fees is only available with the lump sum disbursement option, there are other disbursement options a homeowner can choose from. Other disbursement options include a line of credit, monthly payments or a customized combination.

With the new changes being introduced by reverse mortgage lenders, this type of financing will be able to offer more benefits to homeowners and give them even more access to their home equity. This will make life after retirement simpler for homeowners and provide them with greater financial independence.

Author Bio: Victoria Belle-Miller is the newest member of the Senior ingredients in viagra mortgages and how to obtain them”>Reverse Mortgage writing staff. Her background in journalistic writing and ability to evaluate the issues that Americans face in daily life make her a strong addition to the team and a valuable source of sound mortgage advice.

Category: Finances
Keywords: Reverse mortgage, FHA reverse mortgage, HUD, HECM, government, seniors, equity, home value