|
|
|
|
How to Get a Reverse Mortgage
Loan - Reverse Morgage
Pros and cons of reverse morgage
First let us discuss the nature of the term reverse morgage. This is simply a loan that is paid to you while the collateral for the loan is your private home. With a regular mortgage you pay the loan back in monthly installments. Not in e reversal mortgage, her you get the money and the repayment comes when you sell your home or you die.
Reverse mortgages come in many shapes and colors. For example you can get the cash in several different ways. First, you can get it in monthly payments, or all at once, or in the form of a credit line, or as a combination of the above.
The beauty of this form of loan is that you do not have to pay back the money you get until you sell your home or you die. The option of a Reversal mortgage is not open to anybody, in order to qualify you need to be 62 years of age or above that age.
RM is not all vanilla, it has it minuses, for example, upon applying for a RM you may lose your qualifications for some government benefits in the area of Medicare, social security, and other public benefits financing. This is happening because you now are more liquid thus it is more difficult it be eligible for public help.
Another big problem with reverse morgage is that it involves high closing costs in compare to other forms of loans. However, if you plan to stay in your home for a long period of time this is not a problem. But if you plan to stay for less than five years RM would not be feasible, remember that you need to payback the loan upon selling your home.
Not all dwellings are eligible for a RM. Your home must be a single family dwelling or a two-to-four unit property you need to be both the owner and the occupier of the property. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved. It is possible for individual condominiums units to qualify under the Spot Loan program.
While searching the internet be sure to add to your search string the name of your state and city so that you get local suppliers. For your convenient here is a list of US states and biggest cities: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming. New York, Los Angeles, Chicago, Houston, Philadelphia, Phoenix, San Antonio, San Diego, Dallas, San Jose, Detroit, Indianapolis, Jacksonville, San Francisco, Columbus, Ohio, Austin, Memphis, Baltimore, Fort Worth, Charlotte, El Paso, Milwaukee, Seattle, Boston, Denver, Louisville- Jefferson County, Washington, Nashville-Davidson, Las Vegas, Portland, Oklahoma City, Tucson, Albuquerque, Long Beach, Atlanta, Fresno, Sacramento, New Orleans, Cleveland, Kansas City, Mesa, Virginia Beach, Omaha, Oakland, Miami, Tulsa, Honolulu, Minneapolis, Colorado Springs, Arlington.
Copyright © 2009 by BizMove.com - Small Business and Consumer Info. All rights reserved