
Do You Qualify?
Qualifying for a reverse mortgage isn’t particularly difficult- there are just two primary criteria that must be met for you to get to the paperwork stage of the game. First off, you have to be at least 62 years old. This isn’t an equity loan for youngsters. The entire point of the HECM was to assist seniors with rising medical costs and to help them to avoid the kind of financial pitfalls that can lead to bankruptcy later in life. Secondly, you have to occupy the home as your primary residence. You won’t be able to do a reverse mortgage on your vacation condo in Boca. Sorry. While it really should go without saying, there’s also a little extra proviso that has to be met in order to qualify. You actually do have to have equity in the home in order to secure this financing.
How much Can I Get?

What Happens at the End of the Loan?
At the end of the loan term, which is when the borrower dies, sells the house, or doesn’t keep taxes and insurance up to date, as well as if you move out for more than 12 months, your heirs have some decision making to do. If they want, they can assume the mortgage under a traditional refinance, or the home may be given to the bank. At the end of the loan, the lender has a claim on your property, (the house,) but not you.They can’t, for instance, come after your checking account or those old coins you’ve got squirreled away in a safe deposit box.
Any Final Tips?
If you decide that a Reverse Mortgage is the way to go for you, then there are a few things that you do have to keep in mind. First off, don’t squander the proceeds in Vegas. BAD IDEA! Seriously, though, it’s critical to keep the taxes and insurance up to date, and the interest you pay on the loan isn’t deductible until it’s actually paid off at the close of the loan. The proceeds don’t affect Social Security or Medicare unless those funds are kept in a liquid account such as a savings or checking account. In that case, they could potentially affect your eligibility. To be safe, make certain that you completely read through all the loan materials before you sign, so that you know exactly what you’re getting into.
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