If you intend to apply for a reverse mortgage loan, you have to carry out a reverse mortgage comparison between brokers and companies that offer these services. There is a lot of hype surrounding this type of loan product. As such, it is important that you do a thorough market research on all providers of senior mortgage loans, Nassau County. This will come in handy in sifting through information so that you separate myth and fact. Senior citizens are the primary target group of senior mortgage loans. A comparison-shopping will help you arrive at the best deal in Nassau County.
A reverse or senior mortgage entails signing up a contract that signifies an agreement between the lender and the borrower. Senior mortgage agreements are a bit different from the agreements of regular mortgages and loans. For instance, you get to keep your property while the debt piles up. Settling of the loan begins when you pass on, move out of the property permanently, refinance the property or resell the house. Whichever of these four situations happens first, the loan falls due. Before signing up any contract, please shop around for a company that has reasonable interest rates, is flexible and will meet your needs. A broker or counselor can easily do this. However, you have to do part of the homework before engaging a counselor or broker.
There are three types of senior mortgage loans or products. Home Equity Conversion Mortgages (HECM) loans from HUD and the FHA are the most popular. A good number of HECM loan applicants use brokers to facilitate the signing up process. HECMs are quite cheap for a reverse mortgage product. This is because of insurance from the U.S. Department of Housing and Urban Development. The unavailability of HECM because of strict federal government regulations has also soared up the popularity of this senior mortgage product.
In order to be eligible for senior mortgage loans and especially the HECM product, you have to meet the following requirements. You have to have attained the age of 62 years and above. If your spouse is below the age of 62, his or her name has to come off the property’s title. Senior mortgage loans, Nassau County requires that the loan be the primary lien on the property. If you have an existing mortgage, you have to settle it to pave way for the reverse mortgage loan. You can settle any other mortgage or lien on the house using proceeds from the reverse mortgage.
It is imperative that you be resident in the property that forms the collateral for the senior mortgage loan. In addition, you have to be current on all your condominium fees, home insurance fees and real estate taxes.
There are seniors who want to live in their old homes, where they have all their memories. In Nassau County senior mortgage loan allows them to go on living and owning the old home and the lender will pay them the needed money. For more information about our reverse mortgage loan programs, visit senior security Advisors.
