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Reverse Mortgage Refinance Essentials Bad Credit Refinance Foreclosure

Reverse Mortgage

With social security on the line of being axed forever, those that are getting older are looking for a way to get the retirement money that they will need to be able to live through their golden years.  For those that own a home outright, or that want to use their home as a way to supplement their retirement income from pensions or social security, the best way is to get a mortgage product called a reverse mortgage. 

 

When people hear the term reverse mortgage, many people don't have a clue what it means.  A reverse mortgage is a special product that people can use in order to have the bank send them a monthly payment based on the value of their home.  For example, if a home is worth $200,000 thousand, a couple could get a reverse mortgage which would pay the couple $2000 dollars a month until the $200,000 dollar mark is reached.  Once the amount is reached, the house must be sold to pay back the bank, or the loan must be paid back in full.  This type of mortgage is eligible to seniors and those that are looking for a way to make their home work for them. 

 

This program is perfect for those that are looking for retirement money as it does no good for these people to have a home if they can't afford food and the necessities to live.  By having a reverse mortgage, they can put their house to work for them and pull the equity out of their home that they need to enjoy retirement.  This type of loan is much different than mortgage refinancing as most of the time the house will have been paid off and no mortgage will exist.  It is kind of like a mortgage refinance in a sense in that you are taking something you own and getting a loan on it so you can get liquid cash on a monthly basis to pay for the things you need in order to live your life.   

 

Since reverse mortgages are a very niche product, this kind of mortgage is not like a bad credit mortgage in the sense that any credit score will do. There is a special qualification process that must be followed in order to get approval for the loan to be closed and dispersed. One of the best things to do when considering this type of loan is to meet with a retirement specialist in order to get all of the information that you might need to make the best decision possible.  

 

  10 Steps to Home Ownership:

Step 1: Are You Ready?

Step 2: Hire a Realtor

Step 3: Get Loan Pre-approval

Step 4: Search for Homes

Step 5: Choose a Home

Step 6: Obtain a mortgage

Step 7: Make an Offer

Step 8: Insure Your Home

Step 9: Close the Deal

Step 10: Avoid Foreclosure

 

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