Reverse mortgage loans are only available for citizens who are 62 years or older. These loans differ from regular mortgage loans in that the homeowner does not pay monthly fees, but instead is paid by the lender. The lender pays in a lump sum, monthly, by periodic credit line, or a combination thereof directly to the homeowner, or “borrower”. Citizens who obtain a reverse mortgage are not in risk of loosing their house, and are able to do whatever they please with the money being received from the lender. The lender’s security is based upon the homeowner’s house itself. If the homeowner becomes deceased, is absent from the house for more than 6 to 12 months (or in the care of someone else such as family or a nurses at a retirement home at another location), or if the homeowner decides to sell his or her house, then the lender retains the proceeds of the housing sale. The proceeds from the housing sale are usually effective in paying off the reverse mortgage loans made to the previous homeowner. If the house sells for more money than the loan amount due, then the current borrower or heir(s) receives the difference. In cases where the house sells for less money than the loan amount due, then the insurance company usually pays the difference.
A Reverse Mortgage Lender will come in all types, and it can be difficult to not only make the decision to choose a reverse mortgage, but to also gain information and find an honest and decent reverse mortgage lender. The way to tell if a reverse mortgage lender is reliable is by finding ones who are connected with some kind of national organization such as Fannie Mae, Wells Fargo, FHA, and Financial Freedom Plan. In addition to being a part of a nationally reputable organization, it’s important to know the track record of a reverse mortgage lender. Often times a reverse mortgage lender’s record profile can be found on the company he or she works for, and there are also many sites that allow people who were previous clients of reverse mortgage lenders to give their feedback on that particular lender’s abilities.
Senior citizens should always heavily scrutinize a reverse mortgage lender, and not be afraid to compare lenders until he or she finds the right one. A good Reverse Mortgage Lender will be a person that helps in determining the right plans for you as a person. The lender should be courteous, respectful, and patient. In addition, the lender should always answer questions directly, as well as not ignore a single question. Another attribute that is a mark of a good reverse mortgage lender is one who takes time out of his or her personal lives in order to check up on you, see how you’re doing, check if you’re in good health, and make sure that you understand everything clearly.
For more information please visit our website on Reverse Mortgage