Reverse Mortgages at No Cost to You

By W A Henderson

A reverse mortgage is a loan available to seniors, and is used to pull the home equity in the property as one lump sum or multiple payments over a period of time. How much money can I get from my home?

The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, or a bulk payment of the available equity percentage for their age, then the debt on the property increases each month. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

While this may be a fantastic way to receive extra cash a lot of parents have always planed on their kid’s inheriting the family home. If this is or has been your intent than a normal reverse mortgage by itself may not be the avenue for you. However you can still take the money from the equity in your home while you’re alive and then set-up a life insurance policy to pay back the money you borrowed when you pass away. This is a great way to get the best of both worlds all you have to do is use some of the money from your reverse mortgage to pay for the life insurance policy and purchase a policy that is big enough to pay back all the money you borrowed. This approach will keep your estate whole for your family and that was your objective from the beginning.

W A Henderson: Would like you to visit arguably the Best Life insurance website on the internet today for your free quotes. Go to http://www.LifeQuotes4You.com

Photo by Leon Mitchell

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