Important Information on Reserved Mortgages.
Basically, a reversed mortgage is a form of equity home loan for the older homeowners. For these types of mortgages, the borrower does not make monthly installments but the mortgage is paid once the borrower leaves the home or dies. Although they are considered the last option income source, they are becoming great plans for retirement by many homeowners. However, Futura Mortgage gives a better option for your reverse mortgage needs.
Homeowners can actually access reserved mortgages for seniors with home as the collateral. The transactions are usually structured in such a way that the mortgage does not exceed the home value in the entire life of the loan. Basically, reserved mortgages work differently from the normal mortgage. It is the borrower who makes regular payments on traditional mortgages. However, it is completely opposite to reserved mortgages. Depending on the value of the home, the lender makes payment to the borrower. The borrower could choose to receive regular cash for a certain period or a lump sum.
You can access Futura Mortgage if you are not planning to move on. Also, reversed mortgages are appropriate for people who want to use their home equity as a supplement to their income. The homeowner should, however, be in a position to maintain the home. Reserved mortgages for seniors have some advantages.
1. Easy to qualify.
Unlike the traditional loans, it is often easier to qualify for reserved mortgages. One of the reasons for easy qualification is because the mortgage does not need to be paid until the homeowner moves out or dies. Also, to qualify for these mortgages, the requirements are usually simple. For instance, you should be 62 years or above, the home should be your primary residence, as well as be able to maintain the property. Usually, the credit score and the income of the homeowner do not matter in reserved mortgages.
2. You do not need to pay the mortgage regularly.
When the borrower has qualified for the loan, payments are either made regularly or could even be a lump sum depending on what the homeowner chooses. However, the mortgage is repaid when the last homeowner leaves the home or dies. The payment you receive is also tax-free since it is not earned income.
3. The home is still yours.
Because the homeowners retain their homes, they appreciate these mortgages. Again, you do not lose any control on the home and you are responsible for all maintenances including homeowner’s insurance. Also, you can sell the home and pay the mortgage when that pleases you.
Basically, if you feel that a reverse mortgage is ideal for you, consider Futura Mortgage.
