Tuesday, January 07, 2014

What is a Reverse Mortgage?

It is a Loan on the equity that has built up over time in your home. This type of loan is sometimes called a non-recourse loan ( no debt is left to the heirs)

If the balance of the loan is less than the market value of the home , there is no debt to the heirs, If there is equity left in the home it is retained by the owner or the heirs.

A reverse mortgage is like any other loan you apply for,  there are a whole bunch of things that are in place to  protect the lender and the homeowner, so there are very specific steps to go through to qualify for a reverse mortgage

You will have a better chance to qualify for this type of loan if your home is mortgage free, you will be able to access a larger amount of money this way.




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