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: How Reverse Mortgages Work By Using Home Equity Author: Juhani Tontti Category: Loans, Mortgage, Mortgage Word Count: 442 Keywords: how reverse mortgages work,reverse mortgages pros and cons,senior reverse mortgage,reverse mortgage Author's Email Address: [email protected] Article Source: http://www.contentcrooner.com ------------------ ARTICLE START ------------------
Most home types are accepted. The qualification terms are flexible, because the target of the U.S.Government was to offer this chance to as many seniors as possible. If a senior is at least 62 years old, owns a home, where he has equity left, he will qualify. That is the core, how reverse mortgages work. 1. How Does A Lender Pay You? This is an important question, when you think how reverse mortgages work. The idea is to help you with your financial needs and that means that you will decide, how the lender pays you. It may sound funny, but you will not pay anything back month after month, but only when the loan will be closed. Depending on your needs, the lender will pay you as a lump sum, as monthly installments, as a credit line or as a combination of some or all of these. You can also decide, how many months you will take the money or how big lump sum you need and to stop there. 2. How Much Can You Get? I cannot give you an exact figure, because the sum depends on your age, on the appraised value of your home and on the interest rates. But we can say, that the older you are, the more expensive is your home and the lower is the interest rate, the more you can get. There is a loan ceiling of $ 625.000. 3. Does The Terms Change Over Time? These are the items, which are included into the senior reverse mortgage: compulsory mortgage insurance, origination fee, title insurance, the title, county recording and attorney fees, the real estate appraisal, the survey and the monthly service fee. According to my knowledge at least the interest rate will fluctuate, if you have chosen a loan with a variable interest rate, but if you will choose a fixed rate loan, then the whole package will remain as such. 4. How Many Borrowers Are Accepted? This is an important question especially for couples. Also in this respect a senior reverse mortgage is flexible, because it accepts altogether three owners and borrowers. And it is important to note, that these senior must not be relatives, but all must fulfil the qualification, i.e. to be at least 62 and to be owners of the home. 5. When Will You Pay Back? The reverse loan differs from the usual loan in that respect, that nothing will be paid back on the monthly basis, because the idea is to arrange more disposable money to seniors. So all expenses plus the loan capital will be paid back, when the loan will be closed. This happens, when the last owner dies or moves permanently away. Juhani Tontti, B.Sc., Marketing. If a senior reverse mortgage loan is, what you plan, you have first learn the reverse mortgages pros and cons to be able to make a good decision. Visit: http://www.reversemortgageearnings.com Distributed by http://www.ContentCrooner.com ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
