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 - Or Do They Author: Juhani Tontti Category: Loans, Mortgage, Mortgage Word Count: 491 Keywords: reverse mortgages,reverse mortgage loan,reverse mortgage,reverse mortgages pros and cons Author's Email Address: [email protected] Article Source: http://www.contentcrooner.com ------------------ ARTICLE START ------------------
So the target groups for the reverse mortgages were seniors, who are cash poor but equity rich. Actually this group is quite a big one. Maybe one reason is, that many seniors have a situation, where the incomes have decreased a lot and the expenses have risen a lot. It is clear, that this is a bad combination. 1. Can Anybody Qualify For The Reverse Mortgages? The qualification target was, that as many seniors as possible can qualify so that the reverse mortgages would offer a real solution for their needs. If a senior owns a home, where he has equity left and is at least 62, he will automatically qualify. There are a small amount of the home types, which are not accepted by the FHA. 2. How Many Lenders Are Accepted? There are many seniors, who think, that only one owner can be the borrower, but that is not true. Actually altogether three persons can be in the title as owners, but they all must qualify, i.e. to be American and at least 62. The owners have not to be relatives. The usual situation is that a couple will take the reverse mortgage loan and both will be owners. This means that if another one will die, the remaining person must take care of the loan and the property. Of course if he or she wants, he can move away and then the home will be sold and the loan plus all expenses will be paid away at once. 3. How Much Can I Get? The reverse mortgages will be taken against the home equity, which means that your income nor credit information has no meaning. What is counted are the appraised value of the home, your age and the highness of the interest rate. We can say, that the older you are, the more expensive is the home and the lower the interest rate, the more you can get. The maximum amount is $ 625.000. 4. How The Bank Will Pay Me? A senior as a borrower is the king with the reverse mortgages. Because you use your own money, you can decide, how the lender will pay you. This depends on your needs. The alternatives are as a monthly payments, as a lump sum, as a credit line or as a combination of all or some of these. And, if you have a traditional mortgage left, you will pay it first away with the reverse loan, which will release more money into the monthly use. 5. Are These Difficult Products To Understand? Well, it depends. I recommend, that you make this as a long thinking process, where you ponder several aspects of your financial needs and think, whether this is a solution to solve them. However, there is one great source of help. They are called federal reverse mortgage counselors, who are independent and objective experts, who can explain every single detail to a senior and also to guide, what is the solution for his situation. Juhani Tontti, B.Sc., Marketing. The reverse mortgage loan is a useful product for certain needs. Before you will sign a reverse mortgage loan agreement, meet the federal counselor. Visit: http://www.reversemortgageearnings.com Distributed by http://www.ContentCrooner.com ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
