What is a reverse mortgage reverse mortgage or exactly? Today this form of mortgage loan has become very popular and most lenders offer them now. Here I will give an orientation of how the process, requirements, how to choose the lender and the costs associated with this type of loan or mortgage CREDT.
A reverse mortgage or reverse mortgage is considered a mortgage loan is available only to the elderly. In this type of loan using the equity property as collateral mortgage. It provides the money and make small payments arrangements which there is no obligation to pay until the owner dies. Simply put it defer mortgage payments until the owner dies, the house is sold or the owner of the property is to live somewhere else, eg a nursing home.
Unlike normal mortgages, in which the homeowner makes monthly payments to pay the home mortgage loan, a reverse mortgage or reverse mortgage, the interest is added to the property tax. If the owner receives monthly from the mortgage money, the debt on the property increases each month.
In the United States a person who wants to take a reverse mortgage either through a mortgage broker or mortgage lender, must be at least 62 years of age. No minimum required income or credit requirements established, but people looking to apply for a reverse mortgage or reverse mortgage you must ensure that the conditions for the loan before investing the time.
The amount of money that will be available after being approved for a reverse mortgage is determined through important factors such as:
* The value of the property (appraisal) and if there are repairs that need done. Bone of equity depends on the amount of money each person can get.
* Rate Interest shall be calculated according to the U.S. Treasury 1 year T-Bill and LIBOR or 1 Year CMT Index.
* payment plan. If the loan is taken as a line of credit, either monthly or the person receiving the money than once. Both options have their own advantages and disadvantages, but this explanation will give in my next article.
* The age of the person. In general, the older the homeowner will receive more money.
A reverse mortgage or reverse mortgage is considered a mortgage loan is available only to the elderly. In this type of loan using the equity property as collateral mortgage. It provides the money and make small payments arrangements which there is no obligation to pay until the owner dies. Simply put it defer mortgage payments until the owner dies, the house is sold or the owner of the property is to live somewhere else, eg a nursing home.
Unlike normal mortgages, in which the homeowner makes monthly payments to pay the home mortgage loan, a reverse mortgage or reverse mortgage, the interest is added to the property tax. If the owner receives monthly from the mortgage money, the debt on the property increases each month.
In the United States a person who wants to take a reverse mortgage either through a mortgage broker or mortgage lender, must be at least 62 years of age. No minimum required income or credit requirements established, but people looking to apply for a reverse mortgage or reverse mortgage you must ensure that the conditions for the loan before investing the time.
The amount of money that will be available after being approved for a reverse mortgage is determined through important factors such as:
* The value of the property (appraisal) and if there are repairs that need done. Bone of equity depends on the amount of money each person can get.
* Rate Interest shall be calculated according to the U.S. Treasury 1 year T-Bill and LIBOR or 1 Year CMT Index.
* payment plan. If the loan is taken as a line of credit, either monthly or the person receiving the money than once. Both options have their own advantages and disadvantages, but this explanation will give in my next article.
* The age of the person. In general, the older the homeowner will receive more money.
The costs associated with getting a reverse mortgage or reverse mortgage when obtained from a private lender may exceed the costs of other types of loans. The exact costs depend so many factors that a concrete example would not be appropriate, but for most reverse mortgages or reverse mortgage is common following:
* You must obtain compulsory insurance (mortgage insurance) equivalent to 2% of loan amount .
* Commission of 2% for the first $ 200,000 and 1% thereafter.
* title insurance, $ 450.
* Payment for property evaluation of $ 450.
* County recording fees $ 200.
As you can see there are many different aspects to be taken into account and analyze before you commit to getting a reverse mortgage or reverse mortgage. For this same reason, the decision to seek this type of mortgage loan should be done carefully and people should be educated before taking the plunge.
But today with the help of mortgage brokers you can make this process easier and more enjoyable. When you hire a broker mortge, he or she will be working directly for you and not directly to the bank, so even if you leave a little more expensive it's worth doing through them. You remove all the weight off on the process of reverse mortgage. The mortgage broker does and coordinate everything for you. However if you go directly to obtain through a bank or mortgage lender mortgage loans, the process of coordinating what you should do. In short a mortgage broker gives you a better service and also a very important factor is speed. With a bank directly to any mortgage loan process takes much longer. For people who are hard-pressed for time and want a better, faster and more personalized, more lesconviene then choose to hire a mortgage broker who acted for the process of reverse mortgage or reverse mortgage.
But today with the help of mortgage brokers you can make this process easier and more enjoyable. When you hire a broker mortge, he or she will be working directly for you and not directly to the bank, so even if you leave a little more expensive it's worth doing through them. You remove all the weight off on the process of reverse mortgage. The mortgage broker does and coordinate everything for you. However if you go directly to obtain through a bank or mortgage lender mortgage loans, the process of coordinating what you should do. In short a mortgage broker gives you a better service and also a very important factor is speed. With a bank directly to any mortgage loan process takes much longer. For people who are hard-pressed for time and want a better, faster and more personalized, more lesconviene then choose to hire a mortgage broker who acted for the process of reverse mortgage or reverse mortgage.
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