Mortgage is a term that is almost synonymous to real estate purchasing. It is usually used as a method in which individuals or companies can buy real estate properties without having to pay in full amount(thanks Mom for that info). I often hear the word mortgage and I was really curious, specially when I hear about reverse mortgage . I called my mother again to explain to me what is the difference between mortgage and reverse mortgage. In case you are wondering why I have to call her and why I am writing about this topic, uh, well, I am curious that's why.
I have a curiosity like that of a cat, I love discovering things, so please bear with me on this post. Back to reverse mortgage. It is different from the ordinary mortgage in the sense that the home owner does not pay.In conventional mortgage, the home owner pays a monthly amortization and after a term the property is released to them. They use reverse mortgage calculator to calculate the amount to be paid to the home owner. Yes that's how reverse mortgage work instead of you paying, the bank will pay you.
This kind of mortgage is open to senior citizens. Senior citizens that are 62 years old or more can avail ofreverse mortgages. Another qualification is that the home should be the applicant's primary residence. Obtaining a reverse mortgage is easy, there are only few steps on applying for it. First thing you need to do is to look and seek a free consultation from reverse mortgage specialist. The specialist will tell what you need to know, what you need to do and what are your options. Then you will have to undergo counseling session then you will have to submit your house for appraisal. Your papers (which your specialist will help you to complete) will then be submitted for review. If there are no problems, it will be approved and your loan will be released.