Refinancing Home Mortgage
In: Mortgage Reverse
19 Dec 2010To be eligible for a reverse mortgage, or CHP, the applicant is a senior at least 62 years and their home or have a very low balance on their mortgage, which can be set in the loan. The applicant must also live in their homes, whether single-family homes or multi-unit building in which the applicant resides in one of the units. Some condominiums or manufactured homes can also be considered. There are no income guidelines to qualify for a HECM, unlike a traditional mortgage or line of credit.
The purpose of a reverse mortgage is the borrower an additional income to other funding sources such as income from investments, retirement accounts or services to supplement social security. The product of a reverse mortgage can improve the quality of life and help the borrower pay for home care. If the borrower moves home to a retirement center or nursing, they are no longer entitled to a HECM because the house is not their primary residence.
The amount that can be borrowed depends on many factors, including age of the borrower, current interest rates and estimated value of the house. If the borrower dies or sells the house, the loan must be repaid in full.
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