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How Does a Reverse Mortgage Work?

How Does a Reverse Mortgage Work?

reverse mortgage couple

A reverse mortgage offers senior citizens the money they need to live without the burden of a monthly payment.

A reverse mortgage is available for senior citizens who are 62 years of age or older and who have equity in their home. It is an ideal way for seniors who are struggling to meet their daily living expenses to secure the money they need to live.

The value of your home determines the loan amount you are able to qualify for. With a reverse mortgage, there is no need for proof of income or good credit. You are required to live in your home and continue paying property tax and homeowners insurance, but there is no monthly payment for the loan.

At any time during the time of your loan, you can repay the loan without penalty if you choose to do so. The loan isn’t due until after the death of the last surviving borrower. At that time the heirs of the estate will have time to either sell the property to repay the loan or borrow the money to repay it. They are usually given up to a year for repayment.

For more information about how a home reverse mortgage works contact the loan experts at Midland Mortgage Corporation at 803.765.1680 or toll–free 800.854.9484.
Posted Jul 05, 2012 by Midland Mortgage Corporation