Last week we had a short discussion about reverse mortgage loans & its qualifying criteria. Now we will be discussing some more things about it…read & enjoy.a) What If I Want To Buy A New Home?
You might be thinking, what are the rules of reverse mortgage regarding buying a new home? In this case, you just have to use the reverse loan. Basically you will be able to use the appraised value of your own old house, or present one and to get freedom from paying the down payment.
That would be a very flexible plan, because maximum no. of senior citizens wants to alternate their old big houses into smaller ones, because they felt that practically there is no need of big houses for their living. Another reason might be that they want to shift into a cheaper area or just want to be located closer to their friends.
b) So When Do You Pay?
You might be thinking that what about the payment time for your reverse mortgage? As there are no monthly payments, all your expenses, capital and the due interests, which the bank owes you, will be totally paid back when you or the owner of the house will permanently moved away or dies. Then your house will be sold by the bank and the total chargeable cost will be deducted from the property sales value. The excess amount of money will be given to the owner’s family members.
If the selling price will not entirely covers the costs, the insurance will help then. Here the difference amount will be taken from the insurance coverage, that’s why your other assets will be free from paying your due costs.
c) Meet The Counselor.
It is better to go through all your quarries before taking a reverse mortgage loan. So you must go to meet the counselor. In this way, you can get the best benefits from your loan.
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