Many are buzzing about “mortgage” on television, radio shows, and on the street about this unique financial opportunity for senior citizens. America’s seniors, who have worked for years to build and maintain homes, are intrigued, but may be skeptical about this opportunity, feeling that there is sometimes a lack of unbiased information about new mortgages. It is common to be informed and aware that there are sources of free information and support for seniors who want to make their leisure time comfortable and stress-free.
The opposite of a mortgage is a loan against your home so you don’t have to repay it while you live in your home. You can convert the value of your home into cash without selling it, moving or making monthly payments. the price of the loan or the bank.
Typically, you don’t have to pay anything back until you pass, sell your home, or move out of your home permanently for more than twelve consecutive months. Senior homeowners, 62 years and older, are eligible for this type of loan. A property appraisal must be done before a mortgage is taken out.
Unlike a mortgage, it doesn’t have to be adjusted based on income. You are the owner of your home, as in the case of a common house mortgage. In a reverse mortgage, you are still responsible for paying property-taxes and homeowner’s insurance, as well as any necessary fees. repairs and maintenance.
The amount of money you can receive will vary. Generally, the older the owner, the more money is received. Likewise, the greater the utility of the house, the more money is available. The old debt, such as the original mortgage, must be paid off before the reverse mortgage or paid off with the money obtained from the reverse mortgage.
Like any other mortgage, the reverse mortgage must be replaced. Compensation is due and payable when the last surviving homeowner (e.g. spouse) dies, sells the home, or moves out of the home permanently. Reimbursement can also be made if the owner fails to pay taxes, does not maintain the home, or does not maintain insurance.
The only reverse mortgage program that is insured by the federal government is the Home Equity Conversion Mortgage (known as HECM). The US Department of Housing and Urban Development (HUD) and its agency, the Federal Housing Administration (FHA), tell HECM lenders how much they can lend, based on the age of the homeowner and the value of the home. The program limits the cost of the loan while the FHA guarantees borrowers will meet their financial obligations.
The HECM program provides seniors with a wide variety of payment choices. The money you have from the reverse mortgage can be paid to you;
• No more of these, and no more money;
• in monthly cash advances;
• Like a “faith-line” system that allows you to decide when and how
they have paid you a lot of money in the market; or *
• as a combination of the previous ones.
Not all seniors may have an interest or need for a reverse mortgage. Another of them includes selling the house and moving back. Seniors who are considering their own homes should consider whether they might be better suited to a smaller home, or to provide assisted living facilities, e.g. Seniors who are looking for increased income may also look to the government for SSI (Supplement Security) available through the Social Security Administration, as well as Medicaid and Medicare prescription drug coverage. For more information contact your local Area Agency Seneca and Social Security Administration. On the Internet, search online for www.eldercare.gov www.ssa.gov or www.aarp. org
One of the safeguards built into the HECM program against mortgages is the requirement that all applicants be required to enjoy free counseling from a non-profit counseling agent. Most counties and communities have TESTA-approved non-profit organizations that advise first-time homeowners and senior citizens who constitute. decision on housing and mortgage. To find a plan approved by HUD or HECM lenders, call toll-free at (800) 569-4287 or search online at www.hud.gov With help and advice from an independent nonprofit housing agency, seniors can make decisions. to each mind, whether the mortgage is many good things, or many bad things. I am sure!
Martin Barillas is a state certified housing counselor with the Metro Housing Association of Flint, Michigan, which offers free advice to families looking for help with budgeting and home buying advice, as well as seniors seeking information about reverse mortgages.
Report:
- Websites: www.aarp.org; www.eldercare.gov Call toll-free 1-800-569-4287
