Important Information on Reserved Mortgages.
Usually, older homeowners or seniors can access a type of equity loan on their homes known as reserved mortgages. In this kind of mortgages, they do not have monthly payments but the loan is repaid after the borrower dies or moves out. Other than being considered as the last resort income source, many homeowners are using these mortgages for retirement plans. With Futura Mortgage, however, you can access an improved reverse mortgage.
In reserved mortgages for seniors, the homeowner borrows money against the home. For these mortgages, they are structured in such a way that the loan is not more than the value your home. Basically, reserved mortgages work differently from the normal mortgage. In traditional mortgages, the borrower makes monthly installments to repay the mortgage. For reserved mortgages, what happens is opposite. Depending on the value of the home, the lender makes payment to the borrower. The borrower chooses to get a lump sum of regular monthly cash for a certain period or while the borrower lives in the home.
You can access Futura Mortgage if you are not planning to move on. Again, these mortgages are appropriate when you want to supplement your income with your home equity. The homeowner will, however, be required to maintain the home. Reserved mortgages for seniors have some advantages.
1. Qualification is much easier.
Usually, it is easier for a homeowner to qualify for the reserved mortgage compared to other traditional loans. One of the reasons for easy qualification is because the mortgage does not need to be paid until the homeowner moves out or dies. At the same time, there are only simple requirements. For example, the homeowner must be 62 years old or more with the home being his or her primary residence, and it should be possible to maintain the property. Qualification for reserved mortgages for seniors does not depend on your income or credit score.
2. No regular mortgage repayments.
Once the homeowner has qualified for the reverse mortgage, the lender makes regular payments to the borrower or a lump sum depending on the choice of the borrower. However, you will not pay the mortgage until the last homeowner moves out of the home. The payment you receive is also tax-free since it is not earned income.
3. You retain your home.
Usually, many homeowners appreciate reversed mortgages because they remain in their homes. Since you are also responsible for homeowner’s insurance and property tax, you also completely control the home. Also, you can sell the home and pay the mortgage when that pleases you.
If you want a reverse mortgage, Futura Mortgage would be a good option.