Reverse Mortgage InformationReverse mortgages are relatively new and misunderstood by a lot of people. A person can start looking at a reverse mortgage when they are 61 years and 6 months old. However, the reverse mortgage loan can't close until the person is 62 years old or older. Additional requirements require the property to be a single-family home, a 2-4plex, certain FHA approved condos and some manufacturer or mobile homes. In all cases, the borrower must live in the property to be considered eligible for a reverse mortgage.
Reverse Mortgage Calculations
Determining the amount you are eligible to receive is not a simple equation. The reverse mortgage calculator factors in a borrower's age, property value, mortgage balance (if any), as well as location. The older the borrower is, the higher the eligible amount will be. For example, a borrower age 70 will be able to take out more money through a reverse mortgage than someone age 62. We recommend contacting a reverse mortgage lender to help you determine how much you may be eligible for.
Types of Reverse Mortgage
There are a few basic types of reverse mortgages. One is where a borrower receives a monthly payment from the lender. Another is the lump sum option at closing. That option is scheduled to be phrase out in 2013, so we recommend borrowers quickly contact a lender if they are interested in that option. And finally, there is an option where it's a mixed of the first two options. Another option is known as a HECM Purchase, where one can use the proceeds of a reverse mortgage to buy another home that they plan to live in.
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