Mortgage that pays
- Posted by admin on October 16th, 2007 filed in Reverse Mortgage Info
As I discussed in my last article, a reverse mortgage is a loan secured by your home that you do not have to repay for as long as you live there.
You are able to turn your home’s equity into cash without having to sell your home or repay a loan each month.
It allows you to keep your home and lose the mortgage payment.
In this article, you are provided some information about how you can take the proceeds you get from your reverse mortgage.
A financial formula determines the amount of money you can get from a reverse mortgage.
Several factors affect that amount: The reverse mortgage plan or program you select; the kind of cash advances you choose to receive; your age (the older you are, the more cash you can get); the value of your home (the more your home is worth, the more cash you can get); interest rates and closing costs.
Once you have decided on a program and the amount you will be receiving has been determined, you have several choices about how the proceeds you receive will be paid to you.
The proceeds you get from a reverse mortgage can be paid to you in several ways: A single lump sum of cash; a regular monthly cash advance; or a line of credit to draw money from as you want or need it. You can also choose a combination of any of these methods.
What you actually do with the cash from a reverse mortgage is entirely up to you. Fix up your home, pay property taxes and homeowner insurance, go on a vacation, set up a college fund for grandchildren … the options are endless. There are no restrictions or stipulations on how the money is used.
Found here.
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October 16th, 2007 at 11:54 am
What is the status of HR 1852? Does the law reform apply to condo associations for manufactured home in addition to co-ops? Thank you