Many seniors are facing the hardships of the economy. Even though they have worked for years their pension are getting cut, bills are getting higher, and social security does not cover their basic monthly expenses. Many seniors are turning to reverse mortgages for help. This type of mortgage is similar to a traditional type of mortgage only the bank pays the senior. There are many different types of payment options that a senior can choose from. Qualifying for this type of mortgage is easy. The qualifications specify that the home has to be the primary residence and a person has to be at least sixty two years of age.
A senior can view the different payment options by using a reverse mortgage calculator. The quotes take into account all information and are reviewed by a specialist in the field. A senior can receive payments over a fixed period of time for their expenses or get a lump sum payment. The senior will still reside in the home. A senior can also get a line of credit. They will have access to the money in case some unfortunate event were to happen. Before the senior receives the money all tax liens or other government obligations are paid off. Reverse mortgage rates will vary based on the property, the size and value of the home, and other common housing factors. A senior can get no obligation reverse mortgage quotes online. A professional will review the information and will give them an estimate of how much money they can get. Before any final agreement is made the house will have to be examined and details worked out. All of these mortgages are insured by the Federal Housing Administration, also known as the FHA so it is a safe option for the senior.
Like any other type of mortgage this is a formal process. It is less complicated however then for people trying to obtain a home loan. A senior will provide information about their home and receive a quote. If the senior feels this is the right decision for them, they will have to attend a financial counseling session provided by a HUD counselor. A senior will be advised of any financing cost associated with the mortgage. Any questions will also be answered at this time. If the senior feels this is the right option for them, they can then start the application process. This includes all paperwork and identifying information. At this point there is still no obligation to go through with the process. A professional will come to the home and do an appraisal of the value. Once the home is appraised, an underwriter will review the loan and decide what amount they are willing to lend on. The senior will then be able to close on their loan. An attorney or notary, depending on the state is needed for all final paperwork. Once the paperwork is completed, the senior will receive their payment based on the terms that were agreed upon. This can be a lump sum, monthly payments, or a line of credit. A reverse mortgage for senior can help seniors with any financial obligations they have have. The mortgage is insured and every step is taken to make sure the senior is informed about the entire process.