What is a Reverse Mortgage Loan

What is a Reverse Mortgage Loan?

By: Sydney Zabb


Reverse Mortgage Loan
Credit: Unsplash


Reverse mortgage is basically a loan that allows you to withdraw money from your home equity without having the obligation to put your house for sale. it is also called “Equity Release” but this Term is less common. You can borrow up to certain percentage of the value of your house (example 55% or up to 80% for some banks).

The maximum amount you’re able to borrow will depends on your  Age, House current value and Lender.


Reverse Mortgage Loan
Credit: Unsplash


How the mortgage is payed back?

You pay back your mortgage when you Leave your house, or sell it to someone else .

you don't have to pay any amount on a reverse mortgage until the loan is due. 

The longer is the Loan, the more interest you have to pay on your reverse mortgage.

The remaining Equity of your home is affected by the total value of the Loan.




Is there any cost or fees on reverse mortgage?

  Reverse mortgage Fees may include:

  • a home Evaluation fee
  • a setup fee or application fee
  • a high interest rate
  • a penalty if you pay off your Loan Before the Loan is due  (good to mention)
  • may also have legal fees 

Note that information above can vary depending on Lender and your Country of residence.






 Disclaimer: this article does not constitute a financial advice. It's only for information purpose.



Comments

Post a Comment

Popular posts from this blog

The Clearest UAP UFO Picture ever Taken

Image
The Clearest UAP UFO Picture ever taken by:  Andrew Zabb   In Oct 2013, a massive UAP was observed along the Coast of Australia, it was over 100 meters Long, blue beam coming down of it, we can see 6 white circular bright windows in upper part. That same UAP (or UFO) was seen in France and China with recorded footage. This type of craft of unknow Origin, know was "Cigar Shaped UFO". It was suspected that the same craft caused  airport shutdown in china back in July 2010. See the enlarged pic below: The moment it arrive at the scene scanning the coast   I hope you enjoyed these images.
Read more

A beginner's guide to the types of financial assets

Image
  A beginner's guide to  introducing the types of financial assets Written by Tao Elyaalo The investment climate can be dynamic and constantly evolving, but for those who devote sufficient time to understand the fundamentals of investment principles and the various forms of assets, it is something that makes them reap big profits in the long term. The first step is: Learn how to distinguish between the different types of investments, and what distinguishes each of them on the "risk ladder". But before we start, there are some important points you should know: It is difficult for beginners to carry out investment operations; Because there is a huge range of potential assets that they could add to their portfolio. The investment risk ladder that defines classes (types) of assets based on their relative risk ranks cash liquidity on the basis that it is the most stable investment, and alternative investments are often the most volatile. Often the resort to commodity index fun...
Read more

Reddit 2024 IPO Launch, when and how much is the share?

Image
Reddit 2024 IPO Launch by:  Andrew Zabb PUBLISHED Sat, MAR 16 2024 4 :13 PM EST The Reddit IPO with start on 21st of March 2024 at NYSE. The expected Stock price will be around $33. And there is 15 million shares to sell from the total 22 millions issues in the offering. The Ticker symbol will be " RDDT. ", yes seems there is a dot in the name. Reddit valuation reaching $6.5 Billions. Reddit had issued a warning about Redditors who may cause volatility in the stock price.    Disclaimer: this article does not constitute a financial advice. I t's only for information purpose.
Read more