[Aldina]

what is reverse mortgage

[Plays with Squirrels]

Aldina,A reverse mortgage (or lifetime mortgage) is a loan available to seniors, and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (e.g., into aged care).In a conventional mortgage the homeowner makes a monthly amortized payment to the lender; after each payment the equity increases within his or her property, and typically after the end of the term (e.g., 30 years) the mortgage has been paid in full and the property is released from the lender. In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, or a bulk payment of the available equity percentage for their age, then the debt on the property increases each month.If a property has increased in value after a reverse mortgage is taken out, it is possible to acquire a second (or third) reverse mortgage over the increased equity in the home. But in certain countries (including the United States), a reverse mortgage must be the only mortgage on the propertyHope this helps..

[Mortgageexprt]

With hundreds of daily messages produced from financial institutions and mortgage organizations, it is often difficult to separate it all. What is good? What messages have a hidden agenda? Much of the information made available to seniors is beneficial except when true information begins overlapping with myths. The myths will cause seniors to become very weary of reverse mortgages and often question every source from which they receive information. There are many myths floating in the air and it is time to dispel these myths with honesty and facts once and for all.

Recent research indicates several myths that seniors are concerned about prior to deciding if a reverse mortgage is the best decision for their family and home. The following examination will clarify these myths and will offer some relief to those who have been delaying a reverse mortgages due to inadequate information.