Have you ever heard of a reverse mortgage? When individuals purchase a home, they usually go to a real estate agent who in turn takes them to look at homes. They find the home they want and most people must talk to a lending institution to borrow money to pay for the home. This is a mortgage in which the homeowner pays every month for 15, 30, or more years. If they put money down on the home, it's possible they can have the home paid off sooner. The years go by and, all of a sudden, that same homeowner is now in his/her sixties and ready to make the home work for them, instead of them working any longer for the home.
When a person makes the decision to take out a reverse mortgage, companies such as Security 1 Lending are excellent lenders to talk to in regards proper and thorough information so that the homeowner understands how this type of mortgage works. First of all, counseling must take place here in the U.S. This ensures when the documents are signed, the person taking out the loan knows all the ins and outs of it. If you and your spouse are 62 and you take out the loan together, both of you are assured of having a home should the other spouse pass away.
Remember, you'll be receiving money from the lender paid directly to you out of the equity that has build up in your home over the years. A home that cost $50,000 years ago may be worth close to $150,000 after 30 years of paying monthly payments, renovations, beautifying the property and all around good maintenance performed on it. Every homeowner can have reverse mortgage lending a different reason they want to take the equity out of their home. It's possible they want to take a world tour, fly to Europe, travel to Alaska, pay off other bills or any number of reasons. Their home is going to help them live out a dream or get out of debt.
When you speak with a reverse mortgage lender, they will tell you what you have to do to start this type of mortgage. You'll need to have the home appraised so the lender can make a decision as to how much money you can borrow on it. If you choose the 'line of credit' option, you can draw amounts of money from your account until there is none left. If you choose the 'tenure option' you'll have a monthly payment coming in to add to your social security benefit as long as you live in the home. You can also choose to receive a monthly payment for a certain time period which is called a 'term' option.
The children won't owe the money back should you pass away, but once you use up all the available cash, you won't be able to leave them the home, either. The lender will go over all the terms and conditions before you make a final decision.
When a person makes the decision to take out a reverse mortgage, companies such as Security 1 Lending are excellent lenders to talk to in regards proper and thorough information so that the homeowner understands how this type of mortgage works. First of all, counseling must take place here in the U.S. This ensures when the documents are signed, the person taking out the loan knows all the ins and outs of it. If you and your spouse are 62 and you take out the loan together, both of you are assured of having a home should the other spouse pass away.
When you speak with a reverse mortgage lender, they will tell you what you have to do to start this type of mortgage. You'll need to have the home appraised so the lender can make a decision as to how much money you can borrow on it. If you choose the 'line of credit' option, you can draw amounts of money from your account until there is none left. If you choose the 'tenure option' you'll have a monthly payment coming in to add to your social security benefit as long as you live in the home. You can also choose to receive a monthly payment for a certain time period which is called a 'term' option.
The children won't owe the money back should you pass away, but once you use up all the available cash, you won't be able to leave them the home, either. The lender will go over all the terms and conditions before you make a final decision.
