With the housing marketplace waning, how will the helpfulness of your home affect the payback of the reverse mortgage?
The reverse mortgage accumulates interest as you use the money, and your house is supposed to appreciate 4% a year, will what you owe ever exceed the value of your house?
Answers:
Most reverse mortgages are non-recourse loans which unsophisticatedly means you can never owe more than the house is worth. Seniors qualify for reverse mortgages based on their age and their equity.
Once the borrower(s) vacate the house, the house can be sold to repay the loan or refinanced into a regular mortgage. If the proceeds from the mart exceed the loan amount, the owner of the house receives the difference. If the proceeds are not enough to take-home pay off the loan, then the ridge (or insurance which the bank has on the loan) absorb the difference.
Hope this helps! Let me know if you have any question. Source(s): http://www.onereversemortgage.com/
reverse mortgages are one of the worst scams the banking industry have ever created.
only time it is good is if u are going to die contained by 2-5 yrs and have no kids for ur 'estate' to go to.
call on AARP.org to look at the nightmares of these reverse mortgages. Source(s): biz owner , ex landlord
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Answers:
Most reverse mortgages are non-recourse loans which unsophisticatedly means you can never owe more than the house is worth. Seniors qualify for reverse mortgages based on their age and their equity.
Once the borrower(s) vacate the house, the house can be sold to repay the loan or refinanced into a regular mortgage. If the proceeds from the mart exceed the loan amount, the owner of the house receives the difference. If the proceeds are not enough to take-home pay off the loan, then the ridge (or insurance which the bank has on the loan) absorb the difference.
Hope this helps! Let me know if you have any question. Source(s): http://www.onereversemortgage.com/
reverse mortgages are one of the worst scams the banking industry have ever created.
only time it is good is if u are going to die contained by 2-5 yrs and have no kids for ur 'estate' to go to.
call on AARP.org to look at the nightmares of these reverse mortgages. Source(s): biz owner , ex landlord
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