If you are wondering what a reverse mortgage is ,it is a loan. Ideally reverse mortgages target any home owner who is not only aged above 62 years but one who has a good home equity. Here you will be allowed to borrow money of a value as that of your home and you will get funds in fixed monthly payments or lump sum. Contrary to other types of mortgage loans there is no law compelling you to make any payment of the loan. Your loan payment will be due when you die. To be safe most lenders will ensure that your payment is structured in a such a way that the payments you receive will not go beyond the value of your home. As such if your loaned amount exceeds the value of your house you will not be held responsible and it will loss on their side of the borrower. The purpose of this is to ensure that your interests as the borrower have been protected. As such since the value of homes going down and the borrower living for more years than anticipated are some of the reasons that could lead to this loss the lenders will always make an accurate assessment before giving you the loan.
So when you have a reverse mortgage you are not the one to be making the payments to your lender rather the lender will be paying you. Besides it is the home owner who decides how he or she wants to be receiving the payments from the lender. In addition the home owner will have the home ownership document until he or she is dead and the lender can now take the property. Ideally the homeowners heirs may decide to pay off the mortgage loan. When the mortgage is paid the heirs will b we allowed to keep the house after the death of the home owner.
Reverse mortgages are the best mortgage type you can take since their proceeds are not taxed. This added to the fact that you will not be required to make monthly loan payments make reverse mortgages the best option for those seniors who d not want these monthly commitments.
If you are looking for reverse mortgage options then there is a number of them to choose from. These options include term payment and a line of credit, fixed monthly payments, as well as a line of credit mortgage type. Since all these have different terms and conditions it is paramount that home owners take time to check evaluate these terms before making a decision to take one over the other. Whichever the case a reverse mortgage will make your last days comfortable.