See If A Phoenix Mortgage Company Offers A "Reverse Mortgage"
If you own a home, even a retirement or second home in Phoenix you may have
inadvertently set yourself up financially. With all the money you’ve sunk into
your home in the past and as you’ve watched your sleepy little western city
turn into the fastest growing city in the United States you might be asking
yourself if it was worth it. Well, now its time to find out. A reverse mortgage
might be the best retirement fund around.
What is a Reverse Mortgage
A reverse mortgage is a loan set up to slowly convert the equity in your home
into cash. In this situation the payment stream is reversed and you begin
receiving regular monthly payments. In effect you become the lender and your
bank or mortgage company becomes the borrower. You retain the title to your
property and have full access to your home while payments are being made and do
not have to make any monthly mortgage payments during this time.
Who can get a Reverse Mortgage?
To qualify for a reverse mortgage you must be at least 62 years old and own your
own home or condo. You may be eligible if you still owe money on first or
second mortgages, in fact many people are looking to a reverse mortgage to help
them pay off their second mortgage. The size of your reverse mortgage will
depend on several factors, your age, the type of reverse mortgage you choose,
the value of your home, interest rates, and where you live. Generally speaking,
the older you are and the higher the value of your home, then the more you’ll
get from the reverse mortgage.
Termination of a Reverses Mortgage
Obviously a reverse mortgage doesn’t last forever and it is a loan so how is it
paid off. Generally you determine the length of the loan, but there are other
situations which would cause termination of the loan, if you sell the home, if
a lein is created against the property, if you fail to pay insurance or
property taxes and if you die. For those people who have outlived the loan and
are ready to pay back the loan it’s important to note that you do not simply
turn your residence over to the lender. Most people sell the property, take the
proceeds, pay off the loan and still have some extra left in their pockets. The
payment is only for the amount borrowed plus any interest, not the entire value
of your home.
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