Mortgage Protection Leads from TSL

Reverse mortgage help senior homeowners to convert their home equity into cash. It has become quite common in US these days as senior homeowners can now purchase their principal residence with the help of this loan. Here are 5 things that you should know about reverse mortgage loans.

1. Eligibility criteria: To qualify for reverse home loans, you should be at least 62 years of age. Your property should have equity in it. You should be the owner of the property and it should be your principal residence.

2. Income and credit requirements: There are no income and credit requirements to qualify for a reverse mortgage. This is because you will not have to make monthly payments to repay this loan.

3. Options to receive payments:

You can get reverse mortgage in 5 different ways.

• Equal monthly payments for a fixed time period.
• Equal monthly payments while you live in the property as your primary residence.
• Line of credit and monthly payments combined together for a fixed period.
• Unscheduled installment for a time period until your line of credit is exhausted.
• Line of credit and monthly payments combined together for the time period you remain in the home.

4. Loan amount that you can receive: The amount you can borrow will depend upon your age, property value, interest rate and the appraised value of the property or FHA’s mortgage limit, whichever is less. Online calculators are available for you to determine how much you can borrow.  

5. Paying off reverse home loan: You do not have to repay the loan during your lifetime. However, you will have to stay in the property and pay your taxes and insurance on time. After your death, your heirs can either refinance the mortgage in their names or sell it off to repay the loan.

You will get the right to rescission when you take a reverse mortgage. To take advantage of this option, you’ll have to cancel the deal within 3 business days by notifying the lender in writing. These loans are not taxable and do not affect your Medicare or Social Security benefits.