A home is more than mere four walls to its residents since we often treat our homes as a haven, a refuge and a shelter from the outside world. Now, there is yet another advantage of owning a home that most people realize only when they are in some kind of a financial problem. A home can be the ideal security or collateral when you require a secured financial loan to meet any emergency or lack of funds. Reverse mortgages are one of the best options available to senior citizens of America, who are retired and have no access to any other form of ready income. This form of a loan assures many benefits to the homeowner and is one of the most secured forms of loan wherein the borrower gets relief from repayment of the loan during his lifetime, as the house itself repays the debt through the sale money.
Reverse mortgages offer multiple benefits to the borrower who owns a home that has been put up as a security. The borrower needs to be at least sixty two years of age or above and must own a property to put up as collateral. The ownership of the house, however, remains with the borrower during the entire period of the mortgage and hence the borrower may even sell off the property if he so wishes. The only condition in this case would be that the mortgage on the house is repaid first, before the money from the sale can be accessed by the house owner. Reverse mortgages also enable the house owner to continue to reside in his property for as long as he wants and the property is sold off to repay the loan after the demise of the borrower. This ensures that you will have a roof over your head for as long as you live and this in itself is a great security for an elderly person.
Another advantage of reverse mortgages is that you can re-mortgage the property if needed, provided that the mortgage was first of its kind on the property. Also, the mortgage amount does not have to be repaid during your lifetime, as long as you continue residing in that property. Only you need to ensure that you keep paying the regular expenses on the house such as the taxes and other maintenance costs. However, one drawback of such a mortgage on your property is that you cannot leave the property to the heirs as the loan is repaid after your demise through the sale of the property by the lender of the mortgage.
Also, in the case of reverse mortgages, you may not claim the interest that you pay on the reverse mortgage, on your taxes, till the time the loan has been repaid. However, a senior citizen still benefits in a reverse mortgage loan because of the many advantages offered to him and the security it provides him till the very end. It assures his independence and is one of the reliable ways to raise money when you are in a financial crisis.
Reverse mortgages offer multiple benefits to the borrower who owns a home that has been put up as a security. The borrower needs to be at least sixty two years of age or above and must own a property to put up as collateral. The ownership of the house, however, remains with the borrower during the entire period of the mortgage and hence the borrower may even sell off the property if he so wishes. The only condition in this case would be that the mortgage on the house is repaid first, before the money from the sale can be accessed by the house owner. Reverse mortgages also enable the house owner to continue to reside in his property for as long as he wants and the property is sold off to repay the loan after the demise of the borrower. This ensures that you will have a roof over your head for as long as you live and this in itself is a great security for an elderly person.
Another advantage of reverse mortgages is that you can re-mortgage the property if needed, provided that the mortgage was first of its kind on the property. Also, the mortgage amount does not have to be repaid during your lifetime, as long as you continue residing in that property. Only you need to ensure that you keep paying the regular expenses on the house such as the taxes and other maintenance costs. However, one drawback of such a mortgage on your property is that you cannot leave the property to the heirs as the loan is repaid after your demise through the sale of the property by the lender of the mortgage.
Also, in the case of reverse mortgages, you may not claim the interest that you pay on the reverse mortgage, on your taxes, till the time the loan has been repaid. However, a senior citizen still benefits in a reverse mortgage loan because of the many advantages offered to him and the security it provides him till the very end. It assures his independence and is one of the reliable ways to raise money when you are in a financial crisis.
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