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If you’ve reached the retirement age, there are specific kinds of mortgages that will suit your situation. You need to make the most out of them. Reverse mortgage is one of such mortgage options meant for seniors. It’s a lifetime mortgage specifically meant for borrowers who have reached the retirement age. It’s important you grab some clear details about the reverse mortgage rates in order to gain more from them. The purpose of the Reverse Mortgage Actually, the reverse mortgage is meant to help the seniors to have access to a portion of their homes’ equity. They can draw the mortgage principal in a lump sum. They can also draw that by receiving monthly payments over a specified period. In most cases the retiring home owners are not under obligation to make payments when they secure the reverse mortgages. Nevertheless, they are also free to do so without having attracting pre-payment penalties. Normally, the titles of the properties involved still remain in the name of the home owners. They are always free to do what they want with the titles. In some areas, acquiring a second or third reverse mortgage is possible over an increased equity on a home. This is usually the case when the property value has increased after securing the first mortgage. You can also refinance a reverse mortgage if there’s much equity on the home. You can as well qualify for a streamline refinance if the interest rate is reduced. Reverse Mortgage Rates - The US example In the US, there are specific requirements for securing a reverse mortgage. Basically, borrowers are expected to reach at least 62 years of age. They are also required to have their properties as their principal residences. If for instance, you’re already having any mortgage on your property, it has to be low so that the proceeds coming from the reverse mortgage can be used in paying off the mortgage. In any case, you don’t need to present proofs of minimum income or credit score before you can go for the reverse mortgage. This is because, there are no payments required on the reverse mortgage. You can use the proceeds as you desire. You’re never subjected to any income tax payment. All these can be so when the FHA standards are duly followed in securing the reverse mortgage. There are stipulated FHA-approved properties that can only qualify for the reverse mortgage offer. There are also some factors that are considered. Among them include the interest rate, the appraised property value, and the age of the senior borrower and the method for securing the loan. In most cases, seniors who are more advanced in age do get better offers. The reverse mortgage can be gotten as a lump sum. It can also be gotten as a line of credit or through monthly payments. Oftentimes, the entire cost of the loan depends on the factors mentioned. The mortgage lender involved may also determine the actual reverse mortgage rates. In any case, the reverse mortgage rates are always the same for all reverse mortgage lenders. The rates may also be fixed or variable. They also impact on your borrowing method. You need to go for a reverse mortgage counseling process before you make any decision. Reverse mortgage rates, FHA Mortgage, Fha Loan qualifications
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