What Is A Reverse Mortgage?

Many seniors have found that they did not save enough money for retirement. It is hard for retirees to find a new source of income when they have been out of the workforce for so long, especially when some are not physically able to complete the jobs they once held. Luckily there are options for seniors that are not available to most people. A qualified senior, will be able to get a reverse mortgage. The money you get from a reverse mortgage can make it so you are able to pay all of your bills while staying in your own home, and can even cover the costs of expensive prescriptions.

There are a few requirements in order for a senior to be qualified for a reverse mortgage. In order to qualify you must meet the minimum age, which is between 60 and 65, depending on what lender you go to. If there are multiple people on the reverse mortgage, the youngest person must be at least the minimum age. In order to qualify you must also have paid off your home, or the amount that the reverse mortgage is for must be more than how much you owe on your house. The requirements for a reverse mortgage loan are simple, and if you meet them it may be a great option for you when you need to add income during your retirement. See the reverse mortgage closing costs here, just follow the link.

There are several factors that affect the size of your reverse mortgage loan. A reverse mortgage loan is a type of home equity loan, so the amount it is for is usually dictated by the value of your house. A normal lender will give you somewhere between 30 and 50% of the home's value. This allows the lender to make a profit if you do not pay the loan back. The lender will also incorporate your house's location in determining the size of the loan, because a better location will mean less risk. There are parameters to a reverse mortgage loan, in most states it can be for no more than $425,000 and no less than $10,000.

You have options when it comes to how you will receive the money. You can accept a lump sum and get all the money at once. Another option you have is getting the money in the form of a monthly payment, the amount each month is determined by your age as well as how much the reverse mortgage loan is for. Learn what are advantages disadvantages of reverse mortgages.

Having enough money for retirement is especially important now with all the uncertainty around Social Security and Medicaid. A reverse mortgage is a popular option among many seniors. A reverse mortgage will give you the money you need to stay retired while being able to keep your home.