About Your Retiree Mortgages Info

By David Jones


Homeowners Having Problems With Funds

In today's economy our seniors often have trouble with establishing new credit. Mr Bruce Baldinger believes that the elderly are often having trouble with meeting their needs.

The problem is Seniors have a fixed cash flow source. The elderly are not be expected usually. Yet they can have non static cash needs. What is the solution? It is likely that they have a home that has lots of equity. If this is true and the owners want to stay in the house a reverse mortgage might help thinks writes Bruce Baldinger Sr.

How a Reverse Mortgage Works

These reverse mortgages depend on certain facts being present. The borrowers need to be retirement age. Second there must be extra value in their dwelling. The health of the individuals should known. Also needed is an appraisal of the property. This is necessary to obtain the approximate amount that can be borrowed.

Getting Cash

Basically the amount of debt that can be tapped is 24% to 46% of the equity in the house. The loan type is line of credit or lump sum. This allows for a variety of uses for the people.

How the Loan is Repaid

Often when there are two borrowers, the loan is setup as a second to die situation. This most often works well. It can happen is the debt can get too big. This will need to be rectified unless a no negative equity clause was created. No monthly mortgage payments are necessary usually during the lifespan of the owners. writes Bruce Baldinger esq

Reverse Mortgage Benefits

No mortgage payments are needed. This allows the homeowners to use their cash more productively. Also the loan can reduce the mortgage balance of the current mortgage. Some people are now able to have trips.

A counselor is needed

Reverse Mortgage loans need explanation. There are many things to know. The government require a sit down meeting with the loan originator. This is to inform the customer for the agreement.




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