Reverse Mortgage Lenders
July 20, 2006
Reverse mortgage lenders convert home equity to cash for seniors: find information and calculate loans countrywide – California to Texas to Florida
In a reverse mortgage, the lender or loan company makes a home equity loan that gives the property owner cash to live on as they grow older. There are no monthly payments, and many policies state that the borrower may stay in the home as long as they live. Home owners must have significant equity in their property to qualify. To calculate the amount that can be borrowed, there are several factors, and it also depends on the homeowner’s age; the older the home owners, the more they can borrow.
After the borrower passes away, the heirs can pay the mortgage and keep the property, or the lender can sell the property, take what they are owed, and give the rest to the heirs. If there is still substantial equity, the heirs can get a new home equity mortgage, pay off the reverse mortgage, and retain the home.
If the lender has paid the full value of the property to the original borrower, the lender will “inherit” the home when the borrower passes away.
Once you get a reverse mortgage, you will not be able to get a second mortgage on the property, or use it as security for a personal loan or line of credit.