A
reverse
mortgage is a mortgage against your home that you are not required
to pay back as long as you are living there.
With
a regular mortgage, you borrow money from a lender
and pay that lender back on a monthly basis. As you pay your lender back
on a monthly basis, your debt begins to decrease.
The
exact opposite happens with a reverse mortgage, hence the term “reverse
mortgage.”
With
a reverse mortgage, a lender pays you on a monthly basis. Of course you
must have enough equity
in your home for this to occur.
The
monthly payment from the lender to the borrower is determined on the value
of the home over a thirty or twenty-year term, the same way a regular
mortgage would be.
The
majority of people who apply for and obtain reverse mortgages are older
people who have lived in their homes for many years who have acquired
enough equity to make it worth their while. Using the money to supplement
their retirement
income.
When
it comes time to pay back the loan, the equity from the sale, or refinance
of the home is used to pay the lender.
The
reverse mortgage is not a very popular one today because it is still relatively
new to the market and there is still a lot of misunderstanding about them.
As
pointed out earlier, the majority of people with reverse mortgages are
retired seniors with low to moderate income who need to use the equity
of their homes to survive.
My
own personal opinion is that reverse mortgages will grow in popularity
as people continue to live longer.
Reverse mortgages offer a third way of getting money from your home. This invaluable guide explains everything you need to know about reverse mortgages and how to use them to your advantage. With The Complete Guide to Reverse Mortgages, you'll learn all you need to know to earn the supplemental income you need, without worrying about: Having to sell your home Give up your title Or take on a new monthly mortgage payment.
By Tyler Kraemer, Tammy Kraemer
Reverse Mortgages - Are They Right for You. This book is a must-have for any senior considering a reverse mortgage. THE REVERSE MORTGAGE HANDBOOK explains the terminology and the process related to the reverse mortgage industry. THE REVERSE MORTGAGE HANDBOOK supplies the necessary information to make an objective, educated decision on the reverse mortgage option that is right for you.
By T. E. Ballman
This book explains reverse mortgages - 'the most popular cash-raising tool for senior homeowners' (The Washington Post). It also provides a variety of information sources for reverse mortgage shoppers, including related alternatives. It shows how these new financial products work, how to compare them, where to find them, what to ask, and what look out for. This book is for homeowners who are retired or planning to retire.
By Ken Scholen
Reverse mortgages offer a third way of getting money from your home. This invaluable guide explains everything you need to know about reverse mortgages and how to use them to your advantage. With The Complete Guide to Reverse Mortgages, you'll learn all you need to know to earn the supplemental income you need, without worrying about: Having to sell your home Give up your title Or take on a new monthly mortgage payment.
Reverse Mortgages - Are They Right for You. This book is a must-have for any senior considering a reverse mortgage. THE REVERSE MORTGAGE HANDBOOK explains the terminology and the process related to the reverse mortgage industry. THE REVERSE MORTGAGE HANDBOOK supplies the necessary information to make an objective, educated decision on the reverse mortgage option that is right for you.
This book explains reverse mortgages - 'the most popular cash-raising tool for senior homeowners' (The Washington Post). It also provides a variety of information sources for reverse mortgage shoppers, including related alternatives. It shows how these new financial products work, how to compare them, where to find them, what to ask, and what look out for. This book is for homeowners who are retired or planning to retire.
