Beat Mortgage

Reverse Mortgage or Mortgage Refinancing

The reverse mortgage is the loan available for senior citizens of over 62 years of age in the United States and is used for releasing the home equity in the property as the lump sum or multiple repayments. The responsibility of repaying the loan by the home owner is deferred until the owner dies, the house is sold out or if the owner willingly leaves for going to the aged care. This type of mortgage loan is known as the Lifetime Mortgage in the United Kingdoms.

The borrower must be at least of 62 years or over of age as this is the basic requirement to be eligible for this type of loan. Also the borrower must repay any other existing loans or mortgages with proceeds from the reverse mortgage, and if need be, additional personal funds. There are no minimum income criteria or any credit requirements, besides for most of the reverse mortgages, the money could well be used for any purpose.

Any pending bankruptcy which is not settled may anyway inhibit the mortgage process. Even several kinds of homes like low-value mobile homes disqualify for this mortgage. The borrower is required to seek HUD approved counseling before borrowing, which is the free safeguard for the borrower and his family, ensuring that the borrower has thoroughly understood the reverse mortgage and what is the necessary process for getting the same. Reverse mortgages are usually offered by state and local governments. The most of reverse mortgage loans are FHA insured.

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Add comment July 30th, 2007