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] - Content Crooner (www.ContentCrooner.com) has distributed this article on behalf of the author. Content Crooner 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: 4 Facts Of How Does A Reverse Mortgage Work Author: Juhani Tontti Category: Mortgage, Mortgage, Loans Word Count: 460 Keywords: how does a reverse mortgage work,reverse mortgage purchase,reverse mortgages on house,mortgage Author's Email Address: [email protected] Article Source: http://www.contentcrooner.com ------------------ ARTICLE START ------------------
Many people, who wonder how does a reverse mortgage work do not understand the word reverse. So, when with the usual mortgage a borrower pays to the lender monthly, the reverse mortgage lender pays to the borrower. And the key thing is, that there is no monthly back payments. That is how does a reverse mortgage work! 1. Can You Qualify? Yes, if you fulfil the qualifications. First, you must be an American, age 62 or over and own a home, where you have equity left. And you can also use the reverse mortgage to buy a new home and to use cash or the equity of your old home as a down payment. These are the basic rules how does a reverse mortgage work. 2. The Idea Is That You Get Cash, So You Decide, How The Lender Will Pay You. The reverse mortgage is meant to help you in your daily life. This means that you have the freedom to decide, how the lender will pay you. And that of course depends on, what are your needs. The alternatives are as a lump sum, as a monthly payments, as a credit line or as a combination of all these. That is how does a reverse mortgage work. 3. How Much You Can Borrow? There are these factors, which influence on that. Your age, the appraised value of your home and the interest rate. We can say, that the older you are, the more expensive is your home and the lower the interest rate, the more you will get. However, the situations vary state by state. 4. There Is A Compulsory Mortgage Insurance. The idea of this insurance is, that the lender nor you will not meet any troubles with the back payment. If it happens, that the selling price of your home cannot cover the loan capital, interest and the costs, the difference will be paid from the insurance. On those cases, when the selling price is bigger, the difference will be paid to your heirs. That is how does a reverse mortgage work. By the way, the reverse mortgage will be paid back, and all the costs, when you move permanently away. Not sooner. There is still one important element and that is the compulsory counseling. It means that before you get approval for your application, you have to meet the counselor. In the real life, this is a very useful meeting, because these counselors are high quality experts and you can get very useful advices. As you see, the reverse mortgage loan can help your daily life in many ways by releasing cash money from the equity of your home. All this money belongs to you, because you have saved it during many years and now you want to use it for the necessary needs. Juhani Tontti, B.Sc., Marketing. If You Think How Does A Reverse Mortgage Work Or To Take A Reverse Mortgages On House, A Wise Move Is To Get Enough Information. Visit: http://www.ReverseMortgageEarnings.com ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
