Home is the biggest investment for many people. In the
United States, the median home price is $272,200, the National Association of
Realtors said. In a few hot markets like San Francisco and New York City, the
prices of homes are way higher. The problem for many people is getting access
to that investment. Selling your home and relocating in a new place is a good
solution, but that is a difficult decision for a few people. If you have paid
off your mortgage totally or a big part of it, a reverse mortgage could be a
good solution. However, you need to fully understand how it works before you
make a decision.
Reverse Mortgage: Your Home Is A Piggy Bank
A reverse mortgage loan is a type of loan that is based on the
equity or paid up current value of your house. Unlike a traditional mortgage,
your lender will pay you monthly, in a lump sum or through a viable line of
credit. You will not be required to pay back the loan until you sell your home,
you die, or you move out. Your balance will be deducted from the proceeds of
the home sale once it comes due and you or your heirs, if you have one, will get
any remaining cash.
HECM or home equity conversion mortgage is the most common
reverse mortgage, which is insured by the Federal Housing Administration. You
might also be able to obtain a reverse mortgage loan through your local or
state governments or through private lenders.
The federal insurance will guarantee that when the loan
balance goes beyond the sale price of your home, your heirs do not need to pay
more than 95% of the appraised value.
Types of Housing
You could obtain an HECM on a single family, two to four
unit home where the possible reverse mortgage client owns one unit. Mobile
homes or condominiums that have been approved by HUD or Housing and UrbanDevelopment with a permanent foundation that’s manufactured right after June 1976
could be qualified for a reverse mortgage loan.
Eligibility For A Reverse Mortgage Loan
If you wish to qualify for this kind of reverse mortgage Greenville,
you need to be at least 62 years old. You have to live in your house as your
principal residence. You cannot be delinquent on any federal debut and you
should undergo an education session with an HECM counselor that’s been approved
by the HUD.
The Fees
Reverse mortgage loans can be expensive. The interest rate
is higher than a conventional loan. Lenders will expect for you to continue paying home
insurance, property taxes, as well as homeowners association fees, even though
some will take a part of the loan proceeds for these expenses. It is also
important to continue home maintenance to prevent minor home problems from
become serious ones that could reduce the value of your property.
Call Reverse Mortgage Specialist and learn more about reverse mortgage and if it should be part of your retirement plan.
David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/
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