What is Reverse Mortgage?

By Tony Dim

A reverse mortgage is a loan available to seniors, who are above the age of 62, which releases the home equity in the property as one lump sum or multiple payments. The obligation on the part of the homeowner to repay the loan is deferred until the owner expires, the home is sold, or the owner leaves. In very simplified terms, a reverse-mortgage is an agreement under which one borrows money and will repay it by means of relinquishing his home when he dies or moves. Reverse mortgage Miami is a business that is booming currently.

The Reverse Mortgage Miami is one of the top 10 in the market by a whopping landslide. One of the reasons for this high ranking is because Miami is a retirement haven. Additionally, Miami has greatly benefited from the American Recovery and Reinvestment Act of 2009 which increased the national reverse-mortgage lending limit to $625,500. Seniors looking to get a Miami reverse-mortgage now get an increase in the total benefit offered to them. The rate of foreclosure is high in Miami and reverse-mortgages are a way to avoid the foreclosures.

The Reverse Mortgage Miami offers the retirees in Miami to live with the financial security they need to enjoy their retirement years without becoming financially dependent on others. Not surprisingly, many children of Reverse-Mortgage Miami borrowers are pleased that their parents are able to use their equity and remain living in the comfort of their own homes. While a Miami Reverse-Mortgage loan is outstanding, the senior citizen continues to own the home and retain title to it.

It is so simple to qualify for a Miami Reverse Mortgage. The first and major requirement is that the retiree must be at least 62 years of age and own a home. There are no income or credit requirements to qualify for the Reverse Mortgage Miami either. Homeowners are still eligible for a reverse-mortgage even if they still owe money on mortgages. In fact many senior citizens can even get a reverse-mortgage to pay off their first mortgage.

Another reason for the popularity of Reverse Mortgage Miami is the options available to the retiree for receiving the income from a reverse-mortgage. They can request a lump sum, fixed monthly payments for life or even a line of credit. The money provided to retirees from a Miami Reverse Mortgage is tax-free and does not affect regular Social Security or Medicare benefits, but there are some regulations against them availing some of the Government and state assistance programs. Many companies offer lower fees and free quotes for senior citizens looking for reverse mortgage Miami. With Miami being one of the top preferences for the retirees in the country, there is no dearth of the availability of Miami Reverse Mortgage.

Photo by Sean O’Shaughnessy

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