Important Information on Reserved Mortgages.
Generally, a reversed mortgage is kind of home equity loan usually reserved for seniors or older homeowners. The borrower does not make regular monthly payments for reserved mortgages but the mortgage is paid upon the death of the borrower or when the borrower moves out. Usually, reserved mortgages are considered the last option source of income but many people are considering them as retirement plans. With Futura Mortgage, however, you can access an improved reverse mortgage.
In reserved mortgages for seniors, the homeowner borrows money against the home. The mortgage transactions are often designed such that the loan does not exceed the value of the home. Basically, reserved mortgages work differently from the normal mortgage. In traditional mortgages, the borrower makes monthly installments to repay the mortgage. In reserved mortgages, however, it is the opposite. The lender makes the payment to the borrower depending on the home value. The borrower could opt to get a lump sum or regular cash monthly.
When you do not intend to move on, Futara Mortgage offers you the option to access a reserved mortgage. Also, individuals who want supplement their incomes can do so through reserved mortgages. The homeowner should, however, be in a position to maintain the home. Reserved mortgages for seniors have some advantages.
1. Qualification is much easier.
Unlike the traditional loans, it is often easier to qualify for reserved mortgages. This is because you are not expected to repay the mortgage until you move out or die. At the same time, there are only simple requirements. For instance, you should be 62 years or above, the home should be your primary residence, as well as be able to maintain the property. Usually, the credit score and the income of the homeowner do not matter in reserved mortgages.
2. The regular mortgage repayments are not necessary.
When the borrower has qualified for the loan, payments are either made regularly or could even be a lump sum depending on what the homeowner chooses. Reverse mortgage is not paid until the last homeowner moves out of the house or dies. Because the payment you receive from the lender is not earned income, the money is tax-free.
3. The home is still yours.
Usually, many homeowners appreciate reversed mortgages because they remain in their homes. Again, you do not lose any control on the home and you are responsible for all maintenances including homeowner’s insurance. Also, you can sell the home and pay the mortgage when that pleases you.
If you find that a reverse mortgage is good for you, Futura Mortgage gives the opportunity to accesses an improved mortgage.