Reverse annuity mortgages (RAM) were created to allow older
Americans to tap into the equity of their paid for or nearly
paid for home. Homeowners receive a tax-free payment each month,
and the mortgage is paid when the home is sold. Before you
choose a RAM, make sure you have evaluated the risks since this
option can limit future housing plans.
Types Of Reverse Mortgages
One of the first RAM programs was developed by HUD and is still
in existence. To qualify you must be 62 or older, live in the
home, and have paid off your mortgage. The government will then
insure your mortgage.
You can also work directly with private lenders. You will want
to review their terms carefully to be sure that you are getting
the full value of your home and not paying thousands in fees.
With both types of RAM you will never owe more than what your
home is worth. When you decide to move, the loan's principal,
interest, and fees will be due. Any equity remaining from the
sale of your home will be yours or can be based onto heirs.
*Check out the
valuable,
time-saving and
free resources
on this page for
more resources
on Chip Reverse Mortgage....
|
Difference Between A Reverse Mortgage and A Home Equity Loan
The major difference between a RAM and a home equity loan is
when the loan balance is due. With a RAM, the mortgage balance
is due when you stop living in the residence. You don't have the
monthly payments of an equity loan. With a RAM it is easier to
qualify for the mortgage since you don't have to have income to
make monthly payments.
Payouts Options
There are several payout options that you can choose from. A
tenure policy provides equal monthly payments as long as the
borrower lives on the property. A term policy gives equal
monthly payments for a fixed period of months. With a line of
credit the borrower to withdrawal funds when needed. A modified
tenure combines a line of credit with life long monthly
payments. And finally, a modified term provides a line of credit
with fixed monthly payments.
|
*For more helpful
information and
links on Chip Reverse Mortgage,
save time by using
the resources
available on this
site....
|
Beware Of Scams
There are several scams related to reverse mortgages that you
should be aware of. You should not pay thousands for information
about a RAM. This information is available freely through HUD
and legitimate mortgage lenders. You should also avoid any terms
that require payments before you sell or that sell your house
within so many years. To avoid scammers, research terms and
rates with several lenders and ask questions.
