A reverse mortgage is a financial solution that taps into the equity of your home and is only available to people over the age of 62 and is much easier to qualify for than a traditional mortgage.
By taking out a reverse mortgage, the homeowner no longer makes a mortgage payment in principal or interest. The loan, plus interest, is due when the last surviving homeowner passes away or decides to move.
It is an attractive option for people who have built up strong equity in their home and want to tap into that cash for retirement or other expenses such as health care costs or significant home improvement projects. In fact, trends show that younger seniors are seeking out this form of financing. Recent reports show that 20 percent of homeowners applying for reverse mortgages were between the ages of 62 and 64.
The latest regulations have changed the way reverse mortgages will be handled in the U.S. Hence it is more important than ever to understand your options before proceeding with this type of loan.
Some of the changes include but are not limited to: reduction in the amount of cash received, financial assessment, and the creation of escrow and impound accounts for property taxes and insurance.
Make sure you consult reverse mortgage professionals like the ARAMCO Group if you're concerned about your own unique situation. The ARAMCO Group's president and CEO, Mehran Aram is a Certified Reverse Mortgage Professional (CRMP)?a designation that requires years of experience, large volume of loans closed, passing numerous classes and a comprehensive exam, and it has been given to only about 70 individuals in the U.S.
By taking out a reverse mortgage, the homeowner no longer makes a mortgage payment in principal or interest. The loan, plus interest, is due when the last surviving homeowner passes away or decides to move.
It is an attractive option for people who have built up strong equity in their home and want to tap into that cash for retirement or other expenses such as health care costs or significant home improvement projects. In fact, trends show that younger seniors are seeking out this form of financing. Recent reports show that 20 percent of homeowners applying for reverse mortgages were between the ages of 62 and 64.
The latest regulations have changed the way reverse mortgages will be handled in the U.S. Hence it is more important than ever to understand your options before proceeding with this type of loan.
Some of the changes include but are not limited to: reduction in the amount of cash received, financial assessment, and the creation of escrow and impound accounts for property taxes and insurance.
Make sure you consult reverse mortgage professionals like the ARAMCO Group if you're concerned about your own unique situation. The ARAMCO Group's president and CEO, Mehran Aram is a Certified Reverse Mortgage Professional (CRMP)?a designation that requires years of experience, large volume of loans closed, passing numerous classes and a comprehensive exam, and it has been given to only about 70 individuals in the U.S.