Wednesday, May 14, 2008

Reverse Mortgage

An interesting type of home loan that I have been hearing advertised a lot more lately is a reverse mortgage. A reverse equity mortgage is a unique type of home loan that enables homeowners 62 and older to use their home’s equity to receive a monthly income, a lump sum of cash, or a line of credit. There is no income qualifying and credit requirements are very lenient. So this is a very easy loan to qualify for. There is no repayment until you permanently leave the home. You retain full ownership of your home and you can leave it to your heirs if you wish. You remain on title to the property just as you do now. You DO NOT relinquish any property rights. You can never lose your home regardless of the amount of equity remaining at any time. You can stay in your home for the rest of your life if you choose to. No matter how much you owe. Remember the Reverse Mortgage loan is not due until you permanently leave the residence. Your property taxes and homeowners insurance must be paid current at all times. Proceeds from a reverse mortgage home loan are not considered income. Therefore the funds you receive are not subject to income tax and they do not affect Social Security Benefits or Medicare Benefits. Reverse mortgages become due and payable at the time the homeowner permanently leaves the home. If one spouse passes away and the other is still living at the residence, the Reverse Mortgage will not become due until the last spouse leaves the home permanently. The reverse mortgage can be repaid either from the proceeds from the sale of the residence or other assets. You can leave your home to your heirs if you wish. They can repay the loan and keep the home, or sell it and keep the remaining equity. It’s their choice. The reverse mortgage is a non-recourse type of loan. Your home is the collateral for the Reverse Mortgage, as with any other type of home loan. The lender has no claim or recourse against any other asset you own. You can never owe more than the value of your home. It is a very interesting concept and definitely worth looking into. Ameritek Mortgage is a company specializing in ca reverse mortgages. Their site has lots of good information about reverse mortgages and regular home loans as well. It features a mortgage calculator and gives quotes on reverse mortgages. So if you are interested in getting more information on this type of mortgage or in taking out california reverse mortgages then I suggest you check out Ameritek Mortgage.

1 comment:

Anonymous said...

Hello form the Los Angeles California area. I wanted to comment about the reverse mortgage options that we seniors now have available to use. With everything becoming more and more expensive nowadays, I was having such trouble to pay the bills and mortgage too. I did not want to ask my children for help, but eventually had to, to prevent forclosure. This was a situation that I was not comfortable with. So my wonderful children did pull us though that tough spot but I couldn't see asking them to just take over the payments. So I asked around, and eventually my friend told me about their broker Living in Reverse. Said that they explained everything for the reverse mortgage and were not ones to try to make me do any bad investments with the money. I liked their professional way of handling the whole process and would recommend that you call them if you have any need to use the equity of your home to make a good, secure retirement.