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Reverse Mortgage Solutions

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					Reverse Mortgage Solutions
Before coming up with the reverse mortgage solutions, it is best to determine the exact definition of a
reverse mortgage. Reverse mortgage is a type of lifetime or equity release mortgage, which is a loan
granted to senior homeowners. Mortgage principal can be drawn in form of monthly payments, as
revolving credit line, or a combination of both. The principal can also be drawn in a lump sum.

Reverse Mortgage Solutions Facts
It is crucial to understand the basics in order to come up with good reverse mortgage solutions and
avoid the circumstances where you would need to pay unnecessary fees. Here are some pointers to
keep in mind when getting a reverse mortgage:

        Under a reverse mortgage, the property remains owned by the homeowners. The homeowners
         can dispose of the title as they please except, of course, the part in which amounted to the loan.
        The loan advances, or the money received by the borrowers, is non-taxable. In addition, it will
         not affect the benefits the homeowners received from MediCare and Social Security. However,
         loan advances are sometimes accounted for as liquid assets, so it can possibly affect the
         homeowners’ eligibility for public benefits, such as SSI (Supplemental Security Income) and
         MedicAid.
        The heirs do not inherit the debt the original homeowners had from the loan. Nevertheless, they
         would not be able to keep the home. If ever they would want to keep it, then the responsibility
         for paying the loan will go into them.
        The life of this type of mortgage lasts until the last of the borrowers moves out of the property
         or dies. However, this is conditional, and the homeowners should meet certain requirements to
         maintain their rights to reside in the property.

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Before coming up with reverse mortgage solutions, it is best to determine your financial needs.

Mortgage principal can be drawn in form of monthly payments, as revolving credit line, or a
combination of both. The principal can also be drawn in a lump sum.

Hence,

Reverse Mortgage Solutions Facts

It is crucial to understand the basics in order to come up with good reverse mortgage solutions and
avoid the circumstances where you would need to pay unnecessary fees. Here are some pointers to
keep in mind when getting a reverse mortgage:

•       Under a reverse mortgage, the property remains owned by the homeowners. The homeowners
can dispose of the title as they please except, of course, the part in which amounted to the loan.

•         The loan advances, or the money received by the borrowers, is non-taxable. In addition, it will
not affect the benefits the homeowners received from MediCare and Social Security. However, loan
advances are sometimes accounted for as liquid assets, so it can possibly affect the homeowners’
eligibility for public benefits, such as SSI (Supplemental Security Income) and MedicAid.

•       The heirs do not inherit the debt the original homeowners had from the loan. Nevertheless, they
would not be able to keep the home. If ever they would want to keep it, then the responsibility for
paying the loan will go into them.

•        The life of this type of mortgage lasts until the last of the borrowers moves out of the property
or dies. However, this is conditional, and the homeowners should meet certain requirements to
maintain their rights to reside in the property.

•       There are several types of reverse mortgages. The limitations depend on the type you choose.
While some reverse mortgages have strict rules, others, such as the one under the HECM, have almost
no restrictions.



Dismally, the economy today has affected many of us, even those who are reaching their retirement
age. This is one of the reasons why many seniors are considering the benefits of reverse mortgage
solutions.



A reverse mortgage is a great tool for making your retirement years more comfortable. If done properly,
this loan can help you go through your remaining years and get the best out of those years.
Nonetheless, it is imperative that before making any decisions, we must make sure that we are well-
informed and thoroughly counseled about the pros and cons of the reverse mortgage solutions.
Reverse mortgage is a type of lifetime or equity release mortgage, which is a loan granted to senior
homeowners.

				
DOCUMENT INFO
Description: Before coming up with the reverse mortgage solutions, it is best to determine the exact definition of a reverse mortgage. Reverse mortgage is a type of lifetime or equity release mortgage, which is a loan granted to senior homeowners. Mortgage principal can be drawn in form of monthly payments, as revolving credit line, or a combination of both. The principal can also be drawn in a lump sum.