Getting To The Point – Mortgages

What You Should Know Concerning Reversed Mortgages.

Generally, a reversed mortgage is kind of home equity loan usually reserved for seniors or older homeowners. For these types of mortgages, the borrower does not make monthly installments but the mortgage is paid once the borrower leaves the home or dies. Other than being considered as the last resort income source, many homeowners are using these mortgages for retirement plans. You can, however, access a good reverse mortgage from Futura Mortgage.

The reserved mortgages for seniors gives the homeowner the opportunity to borrow against his home. The mortgage transactions are often designed such that the loan does not exceed the value of the home. Normally, reserved mortgages work differently from other mortgages. It is the borrower who makes regular payments on traditional mortgages. For reserved mortgages, what happens is opposite. Depending on the value of the home, the lender makes payment to the borrower. The borrower chooses to get a lump sum of regular monthly cash for a certain period or while the borrower lives in the home.

Basically, you can choose Futura Mortgage to access reversed mortgages for seniors when you do not have a plan to move. Also, individuals who want supplement their incomes can do so through reserved mortgages. The homeowner should, however, be in a position to maintain the home. Reserved mortgages for seniors have some advantages.

1. Easy to qualify.

Usually, it is easier for a homeowner to qualify for the reserved mortgage compared to other traditional loans. This is because you are not expected to repay the mortgage until you move out or die. Also, to qualify for these mortgages, the requirements are usually simple. Some of the qualifications are such being 62 years or more, able to maintain the home, and the home should be the primary residence of the homeowner. Qualification for reserved mortgages for seniors does not depend on your income or credit score.

2. The regular mortgage repayments are not necessary.

When the borrower has qualified for the loan, payments are either made regularly or could even be a lump sum depending on what the homeowner chooses. Reverse mortgage is not paid until the last homeowner moves out of the house or dies. On the other hand, you receive tax-free payments since the income is not earned.

3. You do not lose the control of your home.

Many homeowners find these mortgages great since they retain their homes. At the same time, you remain in complete control of your home and you are required to pay property tax as well as homeowner’s insurance. If it pleases you, you may sell your home and pay your mortgage.

If you find that a reverse mortgage is good for you, Futura Mortgage gives the opportunity to accesses an improved mortgage.