You have made the decision that you need some extra help to fulfill your monthly financial obligations. A reverse mortgage is one of the best choices for those over 62 who own their own house. The bank will directly pay you, rather than you pay the bank each month. The loan may be taken out in the form of a lump sum, a fixed monthly payment or a credit line. You don’t have to pay back the loan before you sell your house or eventually move outside. You may contact other reverse mortgage lenders such as banks and credit unions to obtain information about such loans. Tariffs can vary so you’ll want to consult with different banks before making a decision. Several forms of reverse mortgage loans exist, and they include:You can learn more at find
Home Equity Conversion Mortgage-HECMs are the oldest and most popular forms of reverse mortgage lending. The federal government insures them by the Federal Housing Administration, which is a branch of the United States. Housing, and Urban Development Agency. The amount of money that you can take out as a reverse mortgage loan depends on your age, your home’s appraised value, current interest rates and your home’s location. The older you are, and the higher the equity (what you can sell for less than what you still owe), the higher the value of the loan will be. The loan limit for a home in a rural area for 2006 is $200,160 while the high cost zone limit is $362,790.
The Fannie Mae Home Keeper is another reverse home mortgage product which you can get from a lender. Fannie Mae is the country’s largest investor in home mortgages, and a major reverse mortgage investor. As an alternative to the HECM, Fannie Mae created its own reverse mortgage program to address the needs of consumers who had a higher property value on their house. Home Keeper loans can be bigger than HECMs because they have higher mortgage limits. The Home Keeper for Home Purchase system is another Fannie Mae reverse mortgage offering. It is for seniors who want to buy a new home using reverse mortgage loan. Let’s say for example, someone has sold his home for a profit of $60,000 and wants to buy a new house for $100,000. He could get a reverse mortgage from a Home Keeper loan using capital, so he wouldn’t have to use his savings to purchase the more expensive ho