Some Reverse Mortgage information that I collect from Internet
When I do research on “Financial Freedom†I found that many sites are talking about Reverse Mortgage and some even emphasize that “Achieving Financial Freedom through Reverse Mortgageâ€Â. Since my blog is about financial freedom, I decide to run a research on reverse mortgage and see whether it really can help us financial free.
1. A Home owner that 62 or older can borrow some money from home equity, this is what we called Reverse Mortgage.
2.  Interest isn’t due until the homeowner dies or move out.
3.  The amount a borrower can get depending on the borrower’s age (with couple, it depends on the youngest), the home value, the interest rate and how the money is take out.
4.  Common uses on Reverse Mortgage is covering the living expenses or for home improvement.
5.  95% of reverse mortgage are insured by Federal Housing Administration.
6.  Under FHA’s Home Equity Conversion Mortgage Program, borrowers can get their money:
a) As a lump sum
b) As a specified amount every month for a fixed period such as 10 years
c) As a specified amount every month until they die or permanently move out of the house
d) As a line of credit
7.  Closing cost of reverse mortgage include an origination fee of 2 percent of the home’s value and a mortgage insurance premium of 2 percent of the home’s value
8.  After the death of the borrower, the loan is repaid from the proceeds of the sale of the house.
Resources: Bankrate.com