Sep
3
Is Senior Reverse Mortgage Loan For Me?
Filed Under Finance
Juhani Tontti asked:
A starting point is, that if a senior is American, at least 62 and owns a home, where he has equity left, i.e. major part of the traditional mortgage is paid away, he will qualify for a senior reverse mortgage loan. Almost all house types are accepted.
1. What Makes This A Senior Product?
The law says so! When the U.S.Government decided about these products, the idea was to help senior Americans, who are cash poor, but equity rich. Maybe there was also such a thinking, that these loans are easy alternatives to the social aids and thus will save the public money.
2. Can My Spouse Come With?
Yes, he or she can. A senior reverse mortgage loan allows altogether three person to be in the title or borrowers. When another one dies or moves away, the remaining borrower will continue with the loan. When the spouse comes with, he or she must fulfil the requirements too.
3. Are The Costs Worth It?
A senior reverse mortgage is more expensive, than a traditional mortgage. You will get the detailed calculations from the federal counselor. This means, that the purpose or need for which you plan to take the loan must be a serious one. Many seniors buy a house to a child or will pay the grown medical bills, for instance.
4. Can I Apply For Medicaid Too?
The reverse mortgage payments may affect your eligibility for U.S. Government benefits, like Medicaid. This is a serious reason, why it is wise to get guidance and to do the financial planning before you take a reverse mortgage loan.
The reverse mortgage payments can influence your eligibility for the Government benefits, like Medicaid. A general rule is, that the income from the reverse program is not counted as income, if the money will be spent during the same month as it has been received.
5. Is There Alternatives?
Everything depends on your needs. If you need a home repair loan and are able to pay it back monthly, then a normal loan against your house is better. If you are willing to sell the home and to move to a cheaper home, then you can use the difference for your needs.
The reverse loan is always a long term investment. It is not a solution, if you will move away after a couple of years and pay it back. Because there are so many things to know and to go through, before you can make a decision, it is wise to go and to meet a federal counselor, who is an expert to give personal guidance. And he is not in the payroll of any lender.
Michael
A starting point is, that if a senior is American, at least 62 and owns a home, where he has equity left, i.e. major part of the traditional mortgage is paid away, he will qualify for a senior reverse mortgage loan. Almost all house types are accepted.
1. What Makes This A Senior Product?
The law says so! When the U.S.Government decided about these products, the idea was to help senior Americans, who are cash poor, but equity rich. Maybe there was also such a thinking, that these loans are easy alternatives to the social aids and thus will save the public money.
2. Can My Spouse Come With?
Yes, he or she can. A senior reverse mortgage loan allows altogether three person to be in the title or borrowers. When another one dies or moves away, the remaining borrower will continue with the loan. When the spouse comes with, he or she must fulfil the requirements too.
3. Are The Costs Worth It?
A senior reverse mortgage is more expensive, than a traditional mortgage. You will get the detailed calculations from the federal counselor. This means, that the purpose or need for which you plan to take the loan must be a serious one. Many seniors buy a house to a child or will pay the grown medical bills, for instance.
4. Can I Apply For Medicaid Too?
The reverse mortgage payments may affect your eligibility for U.S. Government benefits, like Medicaid. This is a serious reason, why it is wise to get guidance and to do the financial planning before you take a reverse mortgage loan.
The reverse mortgage payments can influence your eligibility for the Government benefits, like Medicaid. A general rule is, that the income from the reverse program is not counted as income, if the money will be spent during the same month as it has been received.
5. Is There Alternatives?
Everything depends on your needs. If you need a home repair loan and are able to pay it back monthly, then a normal loan against your house is better. If you are willing to sell the home and to move to a cheaper home, then you can use the difference for your needs.
The reverse loan is always a long term investment. It is not a solution, if you will move away after a couple of years and pay it back. Because there are so many things to know and to go through, before you can make a decision, it is wise to go and to meet a federal counselor, who is an expert to give personal guidance. And he is not in the payroll of any lender.
Michael