When dealing with reverse mortgages, clients most of the time ask if it is possible to have a reverse mortgage even if you have a mortgage with you already. Asking a certain amount of people, and most will probably reply the word “no” to you. The essence of a reverse mortgage, is that it will give the borrower the power to reverse the mortgage. Instead of month by month payment, reverse mortgage allows you to instantly end it once and for all. Read more reverse mortgage information here.
Limitations should be discussed before we go into deeper detail about reverse mortgage because it has become a legalized and regulated program. First is that the mortgage that can be paid off is not limitless, meaning that the amount you can pay off is set at a maximum amount. Knowing how your reverse mortgage will perform is easy, just simply determine if your mortgage value is 70% less than of your home’s value. This probably the pre-determined maximum rate. Hire a reverse mortgage lender for the exact value.
Secondly, the money you got from the reverse mortgage must be used to pay off the mortgage. The leftover money from your reverse mortgage which you used to pay your mortgage can be used any way you desire as long as the mortgage has been paid in full already. If applicants for reverse mortgage, have a large mortgage in the first place then they should always make this their priority all the time. Another benefit from utilizing reverse mortgage to pay off the current mortgage is that you have an increased income due to absence of monthly mortgage payment. Fact is, reverse mortgage is not going to let you pay off your mortgage by month in your entire lifetime, if you are still residing in your home.
Another reason for using reverse mortgage is pay it monthly, and thus removing any charges made on your credit cards, medical bills and other charges. For 30 years and more, reverse mortgage which began its roots in Europe has been one of the most used financial vehicles in several countries in Europe. Follow the link to learn more about reverse mortgage calculators. Currently, reverse mortgage has become so popular that its growth experiences a doubling with each year that passes just to other companies or programs as well.
With the advent of reverse mortgage, seniors of our own community can have a tax-free, surely safe, and of low cost income method which can give them that happy, peaceful and enjoyable retirement they have always dreamed of. In addition to the previous examples, the seniors of our fair community will enjoy their government benefits and advantages, protection of their home from being reclaimed and foreclosed, and the constant worry given due to monthly mortgage payments. Reverse mortgage will allow you to have that very enjoyable retirement and also giving you the option of going around the world. This is the reason why senior citizens, not only in Europe but also in the United States have made this as their primary financial vehicle.
Reverse Mortgage Information Zine 