HUD Reverse Mortage
Are you thinking about doing a HUD Reverse Mortgage?
You will be amazed like I was at what this really is. After much research I have found out more than I knew in the beginning about reverse mortgages. A reverse mortgage enables you to withdraw some of the equity in your home. HUD's Federal Housing Administation created the The Home Equity Conversion Mortgage which is a plan set up that can give you better financial security. This tends to be more popular with seniors because they tend to have a lower income coming in due to retirement and social security benefits not paying as well during their years of service at their jobs.
There are a few things to consider before you decide to do a HUD Reverse Mortgage.
To be eligible for a Home Equity Conversion Mortgage you are required to be at least 62, own your home free and clear, and reside in the home you are wanting the Home Equity Conversion Mortgage on.
While researching the reverse mortgage I ran into a Home Equity Loan that sounded similiar to a Home Equity Conversion Mortgage and wondered how they were different. With a home equity line of credit or home equity loan you must have sufficient income and debt ratio to qualify for the loan plus you have to make a monthly payment. How the reverse mortgage is different is that it pays you and it does not depend on your income or debt ratio. The amount of the Home Equity Conversion Mortgage will have a few factors, your age, the interest rate at the time of the mortgage, and the value of your home at the time of the mortgage.
Normally the more your home appraises for and the older you are, then the lower the interest, and the more you can borrow on it. In my opinion a Home Equity Conversion Mortgage is a good way for anyone over the age of 62 to help out their financial situation, if they are in one. If you are unable to make your monthly payments or decide that you may want to look into this further contact your local bank and ask them about a Home Equity Conversion Mortgage. Good luck in whatever you decide to do.