We human beings are one such species who work hard for his or her entire life to become somebody. Born out of our mother’s womb, we are given ample protection, showered care and looked after by our parents. With the passage of time as we grow, our requirements keep on increasing and then we realize that our parents have bestowed upon us whatever they had. Just the way we run after fulfilling our dreams, our parents and the various aged people also at one point, must have rushed to fulfill their dreams and in this chase, they barely could have saved anything that they can treasure for their lifetime. However, with reverse mortgages becoming a major advantage, today senior citizens of America can get themselves a second chance to do the things that they missed out in trying to live up to their responsibilities of raising their children and looking after their families.
Reverse mortgages are a kind of loan that is made available to the senior citizens of the United States of America, who are sixty-two years of age or above. Reverse mortgages are generally used to release the house equity in the property as one lump sum or multiple payments. The homeowner’s obligation to repay the loan is deferred until the owner dies, the house is sold, or the owner leaves the house. In a traditional mortgage process, the house owner needs to make a monthly payment to the lender and in addition, after each payment is made the equity increases within his or her chattel. Moreover, after the end of the term, i.e. the number of years the loan has been taken for, the mortgage is paid in full and the property is released from the lender. However, in reverse mortgages, the house owner does not need to make any payment and all interest is finally added to the lien on the property. If the owner receives monthly payments, then the debt on the property increases each month.
There are several criterions that need to be fulfilled to qualify for reverse mortgages in the United States. The primary factor is that the borrower needs to be of at least sixty-two years of age. There is no need of any minimum income. However, it includes the requirements of certain factors, and therefore, the borrower should make sure that he or she qualifies according to all the terms to get the loan before they devote any significant time or money into the entire process. Reverse mortgages made its way in the United States some twenty years back, but however, it gained popularity around three years back. Almost every senior citizen in the US is using today, reverse mortgages.
Reverse mortgages in the United States has indeed made things much easier for the senior citizens. In fact, it can be said that reverse mortgages have given them a second chance to fulfill the dreams that they dreamt of but never got a chance to live them. Contrary to the saying “life begins at forty” reverse mortgages has made it that life begins at sixty-two.