Reverse mortgages are becoming a popular way for older homeowners to pay bills and live comfortably while remaining in their home and neighborhood. Reverse mortgages are not the perfect solution for everyone but they are a valuable resource for many. Those who benefit the most are:
* Homeowners who have a large amount of equity in their home.
* People who are able to meet their monthly bills, but have a need for cash to perform repairs, pay a medical bill or want extra cash to make their budget less tight.
* Anyone who has feared having to sell their home because of a lack of money.
* People who are planning on selling in a few years.
Reverse mortgages will only pay out a portion of the equity on a home. All previous mortgages or credit lines must be paid in full first before the homeowner will be able to receive any money. The payments received from a reverse mortgage will have absolutely no effect on retirement or pension payments and are not taxed as income.
A homeowner must be at least 62 years of age to qualify for a reverse mortgage. There are no monthly payments to make after receiving the payout. The money received only needs to be repaid if the home is sold, either by the homeowner or their heirs. If it is sold, the amount left after repaying the reverse mortgage remains the property of the homeowner or the heirs. If the heirs wish to retain ownership of the home themselves, they only need to pay back the amount which was paid out.
In order to qualify for a reverse mortgage the home being mortgaged must be the primary residence of the person applying for the mortgage. There is no limit on other properties the homeowner can own and no credit report is ever needed.
Companies who offer reverse mortgage financing will not encourage or expect homeowners to sell their home or will ever pressure the owner or their heirs to do so. They do expect the house to be properly maintained as it would have been normally and the homeowner must continue to reside in the home.
Reverse mortgage interest rates in Richmond can vary like any interest rate. The rates also depend on what type of mortgage you choose. To find out the current Reverse mortgage interest rates in Richmond, contact a lender near you. Click here for more details.
