For many people growing old means living with less income, the thought of this puts many senior citizens to the state of unrest.
With heavy medical bills to pay or any other loan debits to be paid off, it becomes very hard for them to be financially independent. But with reverse mortgage loans, it becomes easier for them to take care of the loans and bills to an extent.
A reverse mortgage is a loan type which allows the owner of the house to convert their home equity in to cash with no monthly mortgage payments that have to be paid. There are many Reverse mortgage pros which help you to make an informed decision.
Few Conditions To Obtain Reverse Mortgage Loans:
You can take this reverse mortgage loan for 55 percent value of your home and not more than that.
You should not have outstanding mortgages of value higher than that of the 55 percent value of your home. But other outstanding payments like property taxes can be paid off from the amount you borrow.
In Canada, you must be over 55 years of age, and in the US you must be over 62 years of age to qualify for the reverse mortgage loan.
In Canada, both the spouse has to be over 55 years of age to qualify and in US qualification of one spouse over 62 years is enough to qualify for the reverse mortgage loan.
Benefits Of Reverse Mortgage Loans:
- It is the best loan option easily accessible for a comfortable retirement, for people who are over 55 years old and 62 years old in Canada and America respectively, this loan type is much easier and quicker to attain. There will be no lengthy formalities.
- Continue living in your home; you will be allowed to live in your home even after obtaining the loan. You can retain the house owner title and continue living in your home with some extra cash in your hand. In other types of loan, you will have to meet with their respective obligations like vacating your home or renting it out someone else.
- If the value of your home increases in the future, you have the option to refinance your reverse mortgage loan to get to the way in for more loan proceeds.
- It is a non-recourse loan, which means when the loan is repaid completelyneither you nor your heirs will be personally liable for any of the amountsthat exceed the value of your home.
- Any equity remaining after the loan is completely repaid belongs either to you or your heirs.
Few Things That Have To Be Considered Before Opting For A Reverse Mortgage Loan:
The amount that has to be repaid to own back your home gradually accumulates as the interest on the loan is added to it.
If the house owner fails to meet the loan obligations, which includes paying off the property taxes without pending, insurance, and maintain the property the loan will become due.