Reverse Mortgage Reston VA | (703) 594-9229 | SLS Mortgage

Reverse Mortgage Reston VA | (703) 594-9229 | SLS Mortgage Reverse Mortgage Reston VA - (703) 594-9229 - http://sls-mortgage.com/reverse-mortgage - SLS Mortgage A reverse mortgage is one of many vehicles that individuals 62 years of age or older can use to turn the equity in their home into cash. It is very important, though, for an individual to fully understand reverse mortgages, their ramifications, and the alternatives. This article will provide an overview of reverse mortgages. What is a Reverse Mortgage? With a "normal" home loan you pay a monthly amount (principal and interest). With each month, the amount that you owe goes down and the equity in your home goes up. As one might expect from its name, a reverse mortgage works in an opposite fashion. With a reverse mortgage you can turn the equity in your home into cash. You do not have to make monthly payments. The cash may be paid to you in one or more of the following ways: *** As a single lump sum payment *** As a regular monthly amount (a cash advance) *** As a credit line account that you draw upon as needed With a reverse mortgage in Reston VA, the homeowner continues to own their home and receives cash in whatever way is preferable to them. As they receive cash, their loan amount goes up, and the equity in their home declines. A reverse mortgage cannot grow to more than the amount of the equity of the house. In addition, a lender cannot seek payment of the loan from anything other than the value of the house. Your other assets and the assets of your heirs are protected by what is called a "non-recourse limit." A reverse mortgage, plus accrued interest, does eventually have to get paid back. Repayment of a reverse mortgage happens when the last owner of the property named on the loan either dies, sells the home, or permanently moves out of the home. Before then, nothing needs to be paid on the loan. http://www.youtube.com/watch?v=KdLYk9jx2Do There are other circumstances in which reverse mortgage lenders can also require repayment of a loan prior to the above conditions. These include: *** The borrower fails to pay their property taxes *** The borrower fails to maintain and repair their home *** The borrower fails to keep their home insured There are also other default conditions that can cause repayment of the loan. Most of these are similar to default conditions for traditional mortgages (for example, declaration of bankruptcy, donation or abandonment of the home, perpetration of fraud or misrepresentation, and more). A Reston reverse mortgage should not be confused with a home equity loan or home equity line, both of which are other means of obtaining money for the equity in your home. With either of these loan vehicles, an individual must pay at least monthly interest on the loan amount received, or amount that they have drawn on their equity line. Reverse Mortgage Eligibility All owners of a home must apply for the reverse mortgage and sign the appropriate loan papers. To qualify for a reverse mortgage the borrower(s) must: *** Own their own home *** Be at least 62 years of age or older *** A reverse mortgage is most typically a "first" mortgage, meaning that there cannot be any other mortgages or loans against the property, such as an equity line. An individual typically owns their home "free and clear" prior to seeking a reverse mortgage. Reverse Mortgage Loan Amounts The amount of money that an individual may receive from a reverse mortgage is a function of many different factors, including: *** The specific reverse mortgage Reston VA program that the individual selects *** The type of cash advances received (e.g., lump sum vs. monthly payment) *** The individual's age (the older an individual is, the more cash they get) *** The value of the individual's home (the more valuable the home, the more cash they get) Article Source: http://EzineArticles.com/177721 To learn more about reverse mortgages and our other loan programs, visit our YouTube channel: http://www.youtube.com/user/culpeperhomeloans To get any questions answered concerning reverse mortgages, call our loan professionals at SLS Mortgage for a free consultation: SLS Mortgage (703) 594-9229 (855) 571-8800 Toll Free Reverse Mortgage Reston VA - http://sls-mortgage.com/reverse-mortgage