A reverse mortgage is basically a home equity loan, usually secured with a property, that allows the homeowner to access the unencumbered equity in their home. Often the loans are normally promoted to senior citizens and often do not need monthly mortgage payments made. When a person gets a reverse mortgage, they will be entitled to receive a monthly income or profit from the selling of a home. Usually the cash can be used for almost any purpose that is specified by the lender such as paying down debt, paying off high interest debt or paying off other expenses that come up. They may even have to repay a portion of their home mortgage, but it can be more manageable than a traditional mortgage that is tied to a single property or home. Feel free to visit their website at reverse for more details.
People that get reverse mortgages generally live in one of two types of homes; they can either live in a property that is owned outright, or they can lease. These mortgages are commonly used by those who own condominiums or apartments in which they share with others. It is much easier to obtain a reverse mortgage on a condo and you will be able to make lower monthly payments than with a house.
There are many different types of people that get reverse mortgages. There are seniors who need money to buy a new home, people who have died and left a property to their heirs, people who are going through a divorce or foreclosure, people who just can’t make their mortgage payments on time, and of course, those that own homes and are already retired. There are also some disadvantages to getting these loans. For example, if you happen to default on your payments, the lender can take your home and sell it off. This could lead to the loss of your home and the loss of everything you own. While there are many reasons to get a reverse mortgage, it is important to understand the pros and cons to make an informed decision about this type of loan.