Have you heard of a reverse mortgage, but not sure if it could benefit you? Then you need to know more vital information about this type of mortgage to see if you can take advantage of it. This is a great option for you. You first need to understand exactly what this type of mortgage is. Everyone knows that with a regular mortgage you have a monthly payment.
With the reverse option you get a payment sent to you. You are basically turning the equity in your home into cash you can use for whatever you want. Now to help you better understand more about this and to provide you with a clear picture you need to know some important facts about it. To determine if this can benefit you here are the most important facts to be aware of.
One: To benefit from this type of mortgage you have to be at least 60 years of age.
Two: When you receive cash it is important to know that your loan amount will increase while your equity will decrease.
Three: The mortgage can't get to be more than the equity of your home. Plus the lender of the loan can't get payment from you in any way except in the value of your home. This protects your other assets and the assets of your heirs.
Four: Payment of the loan happens if the owner should die, or when you move out or sell the home. Otherwise there is not any payment necessary on the loan.
There are other conditions that may require early payment of the loan and that is why it is a good idea to talk to a professional. They can help you understand these conditions so you can be sure to avoid them until you are prepared to pay back the loan according to the original agreement.
Five: You need to own your own home free and clear before you will be eligible to get this type of mortgage.
Six: In order to be eligible for this mortgage there can't be any other mortgages or loans against the home like an equity line.
Now that you know this important information about the reverse mortgage you can see exactly what it is and how it can benefit you or someone you know. If you are considering this type of mortgage than you definitely need to talk to a mortgage professional first before making any final decisions.
Did you enjoy this article by Paul Mangion on what a reverse mortgage is? He is a mortgage broker in Mississauga, Ontario. Visit his site today for more helpful information.
For more information, please visit: Reverse Mortgage Leads