A reverse mortgage is a kind of loan which is available for the persons who are at the age of 62 years or are older. In this, you can convert the equity part of your home into cash. It helps retirees. Because in their oldage their retirement amount is limited and it is very difficult for them to survive. Due to that they had to live in old ages which are very difficult for them. But now those days had gone. And reverse mortgage is a boon for the persons who have crossed their age of sixty. The persons can live in their residential places without selling them.
Types of reverse mortgages:
The first one is HECM. HECM stands for home equity conversion method. It is created and regulated by a department. It is handled by the U.S. department of Housing and Urban Development.
It is a government loan which is issued by a private bank. And it is insured by the Housing Administration named Federal. It is a part of HUD. There are many rules and regulations in this mortgage.
Proprietary reverse mortgage
These mortgages are different from HECMs. There are changes in this mortgage within time. These mortgages are privately insured by the banks and the mortgage companies that offer them. These mortgages are also called jumbo mortgages.
Features of reverse mortgage
- You are always owner of your home. You never lose ownership of your property. The lender can’t grab your property until you vacate it permanently or till your last survival. You are the owner of your property and your house till your last breathes.
- The amount of funds of reverse mortgage in California depends on his age, the amount of the property he or she possesses. The other factors are interest rates and upfront costs. The area of the property also a major factor to get reverse mortgages.
- Citizenship is also a factor which is counted. The person must be a senior citizen of the country.
- The best feature of this mortgage is that there is no need to pay any kind of installments to the lender back. In this mortgage, lender gives you amount at the end of each and every month. Because of this feature of these mortgages, these are called reverse mortgages. These are totally opposite to the traditional mortgages.
- You are secure even after your retirements.
- It is like you are getting salary at the end of every month. You get monthly income without working or without going anywhere.
- Your life is easy till your last breathe.
- Reverse mortgages helps you to lead a peaceful and simple life which includes no tensions and worries.
- There is no tension to pay installments. No bank comes at your house to remind you that you have to pay your installments.
- You are a reputed person who can live his life with a standard.
In this way reverse mortgages help you to lead a peaceful and luxurious life.