Important Information on Reserved Mortgages.
Basically, a reversed mortgage is a form of equity home loan for the older homeowners. The borrower does not make regular monthly payments for reserved mortgages but the mortgage is paid upon the death of the borrower or when the borrower moves out. Usually, reserved mortgages are considered the last option source of income but many people are considering them as retirement plans. However, Futura Mortgage gives a better option for your reverse mortgage needs.
In reserved mortgages for seniors, the homeowner borrows money against the home. The mortgage transactions are often designed such that the loan does not exceed the value of the home. Normally, reserved mortgages work differently from other mortgages. It is the borrower who makes regular payments on traditional mortgages. However, it is completely opposite to reserved mortgages. The lender makes the payment to the borrower depending on the home value. The borrower chooses to get a lump sum of regular monthly cash for a certain period or while the borrower lives in the home.
You can access Futura Mortgage if you are not planning to move on. Also, individuals who want supplement their incomes can do so through reserved mortgages. The homeowner will, however, be required to maintain the home. Reserved come with several benefits.
1. Easy to qualify.
As opposed to other traditional loans, qualifying for reserved mortgages is usually easier. One of the reasons for easy qualification is because the mortgage does not need to be paid until the homeowner moves out or dies. On the other hand, the requirements for reserved mortgages are usually simple. For example, the homeowner must be 62 years old or more with the home being his or her primary residence, and it should be possible to maintain the property. To qualify for reserved mortgages, your credit score or income does not matter.
2. No regular mortgage repayments.
Once the homeowner has qualified for the reverse mortgage, the lender makes regular payments to the borrower or a lump sum depending on the choice of the borrower. However, the mortgage is repaid when the last homeowner leaves the home or dies. Because the payment you receive from the lender is not earned income, the money is tax-free.
3. The home is still yours.
Many homeowners find these mortgages great since they retain their homes. Since you are also responsible for homeowner’s insurance and property tax, you also completely control the home. If it pleases you, you may sell your home and pay your mortgage.
Basically, if you feel that a reverse mortgage is ideal for you, consider Futura Mortgage.