Juhani Tontti offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: What Is A Reverse Mortgage!Know The Facts Before You Apply Author: Juhani Tontti Category: Loans, Mortgage, Mortgage Word Count: 449 Keywords: what is a reverse mortgage,how do reverse mortgages work,senior reverse mortgage,reverse mortgages Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
But what is a reverse mortgage? The basic idea is, that a senior age 62 or over can loan money against his present home, to live there and not to pay monthly payments. The sum of the senior reverse mortgage is a percentage of the home value determined by the age of the youngest owner. 1. What Is A Reverse Mortgage Loan vs. Normal Home Mortgage? As to the credit information, the home equity loans, the second mortgages, or the home equity line of credits have clear requirements as to the income and creditworthiness. The borrower of the normal home mortgage must make the monthly payments. The reverse mortgage loan borrower must not make any monthly payments and the lender does not use any income or credit limits. All cost will be deducted, when the loan will be paid back. The FHA formula determines the amount according to the age, the appraised value of the home and the interest rate. The older the owner is, the lower interest rate he gets. The more valuable the home he has, the bigger the loan sum will be. There is one point, which is important, when you think what is a reverse mortgage. The lender cannot force to foreclosure or vacate the home, if you have not paid the monthly payments. But you have still to take care of the expenses, like real estate taxes, utilities and the maintenance. 2. What Is A Reverse Mortgage Loan, When You Die Or Move Away? In these cases the reverse mortgage loan can be changed into normal home mortgage loan to keep the house. The home can also be sold to pay the cash borrowed, interest and fees. If the equity of the home is more than the sum of the reverse mortgage loan, the difference will be paid to heirs. No other assets are affected by the senior reverse mortgage. If the sales value of the home is less than the sum of the reverse mortgage loan, the difference will be covered from the insurance. Everybody, who takes the reverse mortgage loan must take the insurance. 3. You As A Borrower Decide, How You Receive The Money. What is a reverse mortgage payment system? Actually, when you know the maximum sum or the sum you want, you can make the decision how you want them to pay you. Basically there are three versions. As a lump sum, as monthly payments and as a credit line. When you think your needs, you will easily find the solution. If you need the money for a home repair, you may want a lump sum upfront and after that some monthly sums. If you need added money for your daily living costs, you may prefer fixed monthly payments. Juhani Tontti, B.Sc., Marketing. Are You Thinking How Do Reverse Mortgages Work? What Is A Reverse Mortgage? Collect Information About Senior Reverse Mortgage And You Will Find A Great Product! Visit: http://www.ReverseMortgageEarnings.com ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
