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: How Do Reverse Mortgages Work Author: Juhani Tontti Category: Mortgage, Loans, Mortgage Word Count: 515 Keywords: how do reverse mortgages work,senior reverse mortgage,what is a reverse mortgage,reverse mortgage Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
To get all the details about how do reverse mortgages work reputable lending institutions require, that a senior goes through a counselor meetings before signing any documents. This procedure is useful to get information about alternatives but also about some risks and other facts of how do reverse mortgages work. 1. How Do Reverse Mortgages Work, A Starting Point. The basic idea is to help seniors age 62 and over to keep their financial situation on a good level by allowing them to use part of the equity of their home for the living costs. What they have done is, that they have saved, or paid, their home mortgage for years, when their income was higher. Now the senior reverse mortgage loan works another way round and a senior gets money from the capital of his home, so the lender pays him and he has not to pay any monthly payments. This is the basic system how do reverse mortgages work. 2. How Do Reverse Mortgages Work, Who Can Qualify? First, a person must be of age 62 or over and to own his home. Because the reverse mortgage loan will be taken against the present home equity, the home must be fully paid or the equity must be big enough. A good thing is, that the credit scores have no influence on the qualification. 3. How Do Reverse Mortgages Work, How Much Can You Borrow? The maximum amount of the reverse mortgage loan depends on many things like the age of the borrower, the amount of the equity and the appraised value of your home and the senior mortgage loan program, which you have selected. 4. How Do Reverse Mortgages Work, What Are The Costs? Like with all loans, a borrower must pay fees to get the loan. The principle is, that all fees depend on the lender, so there is no general price list about the costs of senior reverse mortgage loans. However, some costs must be paid upfront, some in the context of the closing. The mortgage insurance is obligatory and it covers the costs, if the home value does not cover all the costs when the loan will be closed. Additional costs are the monthly lender fees, the loan points or application fee and normal closing costs. 5. How Do Reverse Mortgages Work, What Kind Of Products Are Available? Some lenders charge a fixed interest rate, others use adjustable rates, which will change monthly or annually. Lenders charge a margin. All interests and margins will be paid back, when the loan will be paid back. This happens usually, when a borrower moves away from the home or dies. Interest rates are typically capped, meaning the rate can be increased only to a maximum rate and no higher. Caps range from 5 to 6 percent on an annual adjusting rate and from 10 to 11 percent on a monthly adjusting rate. Basically the senior reverse mortgage is a very clear product, which has strong benefits to the borrower. When you want to know more about the details and things, which fit to your own situation, please contact the reverse mortgage counselor. Juhani Tontti, B.Sc., Marketing. When You Think A Senior Reverse Mortgage Loan Read More Useful Information About How Do Reverse Mortgages Work From My Special Blog. Visit: http://www.ReverseMortgageEarnings.com ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
