Reverse Mortgage

Reverse Mortgage:

A Reverse Mortgage is a secure mortgage loan against your real estate property for the senior citizens but here you need not to make monthly payments. Reverse mortgage is an easy source for tax free income for the senior people who are more than 62 years old.

Reverse mortgage is a great way to get tax free cash flow for the retire persons. Thousands of people have taken the benefits of reverse mortgage. A reverse mortgage works in the opposite manner to the typical mortgage loan. Here you need not to pay the monthly mortgage payments but you can get money on monthly basis.

reversemortgage

If you have taken the reverse mortgage to release the equity that you have gathered, you can still live in your house. The loan to value ratio is generally 60 percentage but some banks are even designing the loan as much as 80 to 90 percentage.

Eligibility for reverse mortgage:

  • You should be more than 62 years of age
  • The property should be your primary residence
  • Your house should be a single family residence
  • Your house should be HUD approved

Reverse Mortgage Benefits:

  • An easy way to get tax free income
  • You will retain life long ownership of your property even after the reverse mortgage
  • You need to make any loan repayment as long as you live in the property
  • There is no minimum income or credit requirement to get approved for the reverse mortgage

To get the reverse mortgage you need make a high upfront cost and that is why some senior citizens choose other type of loans to release the home equity especially if they plan not to live in the property for more than 5 years. Some people also sell the property and move to other less expensive dwelling place.

  1. JaneRadriges
    June 13th, 2009 at 23:59 | #1

    Hi, gr8 post thanks for posting. Information is useful!

  2. KattyBlackyard
    June 15th, 2009 at 08:13 | #2

    The article is very good. Write please more

  3. jr
    August 26th, 2009 at 22:41 | #3

    There are some drawbacks to reverse mortgages as well. Make sure you have all the information before you jump to a conclusion.

  4. free mcdonalds food coupons
    September 13th, 2009 at 22:18 | #4

    Thank you much for that informational blog post.

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