Most of us now hear about reverse mortgage from our friends, family members or other elders. You might have also heard about it in T.V. commercials or in news papers that there are lot of reverse mortgage companies in the market. But despite of all these takings, many of us are still not aware of the exact meaning of reverse mortgage.
The reverse mortgage is specially for those homeowners who are aged equal or more than 62 years. through this process you can get loan money as a line of credit or as a lump from your home. And when you sell your house or pass away, this money will be repaid automatically to your creditors.
The trend of reverse mortgage is now getting more and more popular nowadays. And the prime reason behind it is, these revers mortgage loans are not taxable and most importantly it does not affect your social security. You can have your home as long as you want and along with the title and you don’t even need to make any repayments to your creditors. The loan is subject to repayment only when the owner of the house is dead or sells it or permanently moves somewhere else from there. It is totally irrelevant to a regular mortgage loan.
Types of reverse mortgages:
1. Single-purpose reverse mortgages: This one is offered by some nonprofit organizations and the State and Local Government Agencies.
2. Federally-insured reverse mortgages: This one is protected by (HUD) Department of Housing and Urban Development.
3. Proprietary reverse mortgages: This service is provided by those companies which develop them. These are private loans.
This type of reverse mortgage loans are very cheap compared to the other loans in the market. Bu the problem is they are not available everywhere. There are some terms and conditions are there for one to qualify for this loan. The home owners must have low or moderate monthly income to qualify for this reverse mortgage loan.
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