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Reverse Mortgage : A Reverse Mortage is a loan in which you are paid by a lender, while you continue to live in your home. It is a home loan for 62 years old and older. The aim is to get cash out of their home without having to move or make monthly mortgage payments.
 Reverse Home Mortgage
With reverse mortgages, homeowners age 62 and older can get money from equity. Various factors such as increasing home values and low interest rates and increasing living costs are pushing retirees to the reverse mortgage as a survival tool.
Many people love this idea but some may not because they're expensive and complicated, so check out all options and have a legal real estate professional review the documents so that you can know what you're getting into and how much it will cost.
As its name suggests, it's the reverse of the mortgage you used to buy your home. Instead of making monthly mortgage online payments to a bank, the bank pays you. You're using the equity you've built up over the years.
If you're at least 62 years old and have equity in your home, you probably can get a reverse mortgage on your primary residence. You can get the same title for your home and still are responsible for maintaining it and paying property taxes.
You don't make payments until you move out of your home or die. At that point, you or your heirs have a year to repay the amount you received, along with fees and interest, either through refinancing or sale. If the balance equals or exceeds the value of the home, it can be signed over to the lender. You or your heirs would never have to pay more than the house is worth.
The amount you receive depends on the home's value, your age, interest rates and where you live. The higher the value of your home and the older you are, the more money you can receive. Reverse mortgage payments are not taxed and don't affect social security payments.
Reverse mortgages carry closing costs from 5 to 8 percent of the home's value. The costs are high because you make no payments until you sell your home. Until then, there's not only interest on the principal amount, but also interest on the interest.
Experts see a crisis because many seniors don't have enough savings or insurance to pay for extended-care needs. Instead, they often turn to Medicare, which pays primarily for nursing home stays, but do not care for the home.
Steps for getting reverse mortgage:
1.Be aware: The owners of the home can learn about the reverse mortgage programme from news articles, advertisement, internet or from relatives and friends.They can also take additional information by contacting a reverse mortgage lenders
2Approach Counselor:Homeowner can take the necessary counseling from an expert Counselor.Counseling is mandatory regardless of which reverse mortgage product you choose. Counseling is usually conducted face-to-face. The counselor provides information on reverse mortgages, determines whether you're eligible to get a reverse mortgage, and discusses other options that may be available to assist with your daily living. The homeowner can get a certificate to give to the lender as a proof that they were counseled
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