Featured Mortgage Lender Article
Reverse Mortgage Lenders
If you know anything about mortgages, you're aware that there are many different kinds of mortgages. Most of them are somewhat similar to each other with the differences being in the terms of the loan. For instance, some are no closing cost mortgages, low interest mortgages, adjustable rate mortgages, fixed mortgages, secondary mortgages, etc. The one mortgage that not a lot of people are familiar with is reverse mortgages. The main purpose of a reverse mortgage is to help the seniors and retirees live in financial security not having to worry about losing their home. A Reverse mortgage lender can give you all the information you need about reverse mortgages. Many people hear a few details on the news or television regarding reverse mortgages and believe they sound like something worth checking into. However, after checking with a reverse mortgage lender, they discover that reverse mortgages are not for everyone; they're only for seniors.
Although all banks and lending institutions have a mortgage lender or loan officer, not all banks have reverse mortgage lender on staff or even do reverse mortgage loans. There are advantages and disadvantages of a reverse mortgage and a reverse mortgage lender can answer any questions you may have if you are considering a reverse mortgage for yourself or a family member. There are a lot of misconceptions about what reverse mortgages are and what their purpose is.
Reverse mortgages are restricted to those 62 years or older. They are not a traditional home loan, nor is it a way for the bank to get their hands on your home, as many mistakenly believes. It is not free money for the senior or a cure-all for other financial problems. Although a reverse mortgage lender may ask questions regarding your financial situation, reverse mortgages are not based on your credit scores or your income. A qualified reverse mortgage lender can explain all the details, but the easiest description is that it is a way for homeowners 62 years or older to get cash from the equity they have in their home. They continue to live in their home as they always did and can use the cash anyway they choose.
Once you meet with a reverse mortgage lender, they'll set up an inspection or appraisal on your home. This is a standard process for any type of mortgage. After this is completed, the loan is approved and there will be a closing. The homeowner gets the amount of cash they requested and can spend it as they choose or choose to save it. The loan is not due until the death of the homeowner or if they permanently move. There are no payments to make during the life of the homeowner. There will be certain fees to pay as part of the closing of the loan such as interest, loan closing fees, etc. The only requirements of the homeowner are that they keep up the maintenance on the home, pay the property taxes and homeowners insurance.
There are many reverse mortgage lenders online if you're considering a reverse mortgage. Before you make any final decisions, speak with a reverse mortgage lender so you know this is the right decision for you.