If you want to know about a reverse mortgage, here are some vital information you may need to know. One of the great importance of reverse mortgage is to allow you draw some of the equity from your home. Most people will use the reverse mortgage to pay some unexpected bills like the hospital bills, home improvement or supplementing of social security.
You will need full information about the reverse mortgage calculator before you decide whether it is the best option for you. The thing is to make sure you understand it before you decide whether it is what you want. A reverse mortgage is a special type of house loan that enables you to convert some of the equity into cash. The beauty of the reverse mortgage is that you do have to start repaying until you stop living in the same house or you fail to repay the original mortgage.
May be you will then want to know whether you qualify for such mortgage insurance. The first thing is to be a homeowner and one who is sixty-two years of age and above. You should have minimal amount of mortgage remaining or be a homeowner outright. The other requirements are that you must be living in the house, the balance should be low such that is can be settled with the reverse loan, and also you must show evidence of income that will enable you to pay the new loan.
You can also apply for this kind of mortgage even when you did not purchase your house with insured mortgage. You may be asking yourself whether your home is among those that can qualify for the kind of loan. The criteria is that the home should be occupied by a single family. You may be interested to know what is the difference between a reverse mortgage and a home equity loan.
With equity loan, the borrower is required to pay both the principal and the interest every month. The payment also includes taxes, and insurance premiums. what you may also be interested to know is that in case you want to sell the house while you still have the loan, you must clear all the loan balance at the time of selling. That means before you can transfer the house to the new buyer, you must clear your mortgage. If it is your spouse or heir selling the home, they will have to pay the remaining loan, and the rest of the balance shall be for their use. The amount for each borrower is different depending on some factors. The the first determinant factor is the age of the person borrowing. The no eligible spouse is another factor that can affect the amount. For more facts and information about reverse mortgage, visit http://www.encyclopedia.com/topic/broker.aspx .