Almost all senior citizens, who own homes, are familiar with the term “reverse mortgages”. Today it is possible to get reverse mortgage loans for seniors at affordable interest rates and flexible terms. To know more on the subject of mortgage refinance for people with bad credit, read on.
A senior citizen reverse mortgage loans, which is also known as “Home Equity Conversion Mortgage” or HECM, allows drawing cash by pledging portion or all home equity. The income secured this way is tax-free and borrower need not pay the money being borrowed until he dies. After death, lender is liable to recover loan dues along with interests.Get Quick Approval
Senior citizen reverse mortgage loans can be secured for a number of reasons as under:
The main difference between reverse mortgage loans for senior citizens and traditional home loans is that for reverse mortgages, there are no monthly payments. Besides, to get approved for a reverse mortgage loan, there are no income or credit criteria. The only factor that has bearing on approval process is age of applicant.
Here is some crucial information about reverse mortgages for seniors. Prior to exploring various options, it could better if you ask yourself the below mentioned questions.
Closing costs for reverse mortgages can be extremely high and to that effect, if you are thinking of moving out of the house within a year or two then getting a loan of this type might not make financial sense.
Reverse mortgages are ideal for senior citizen homeowners who own valuable homes but have low incomes. This is because of the fact that as time passes by, equity in homes will increase and so will be their market selling prices.
To obtain approval for seniors reverse mortgage loans, the following criteria have to be satisfied.