Online info on mortgages, mortgage loans and how to get a reverse mortgage. This web site includes a reverse mortgage calculator, information on online mortgage loans and more about reverse mortgages.
Here's some useful mortgage and finance information:
A mortgage is a loan agreement that allows a person or company to borrow money putting as collateral a house or other real estate. It is used to finance the purchase or the property or for money to make other purchases or investments. The real estate is used as security for the loan. The lender may take legal action to take possession of the property if the loan is not repaid on time.
A Reverse Mortgage is a way to get a loan without the burden of paying back the money. This finance method is a loan that is insured by the United States government and has specific requirements attached with it. Some of the key points are as follows:
Age limit of the person seeking the loan is over 62 years.
The loan is advanced to the borrower as a percentage of the value of the mortgaged asset. It implies that money advanced is lower than the actual value of property. This percentage is usually 40-70 percent.
There is no time limit for the borrower to repay the loan. The lender can sell the real property after the death of the borrower to satisfy the debt.
In the case of reverse mortgages that are insured by the government, when the borrowers passes away the estate of the deceased is required to reimburse the principal amount along with the interest rate of about 6% in order to get possession of the real estate.