Usually, older homeowners or seniors can access a type of equity loan on their homes known as reserved mortgages. The borrower does not make regular monthly payments for reserved mortgages but the mortgage is paid upon the death of the borrower or when the borrower moves out. Although they are considered the last option income source, they are becoming great plans for retirement by many homeowners. With Futura Mortgage, however, you can access an improved reverse mortgage.
In reserved mortgages for seniors, the homeowner borrows money against the home. The mortgage transactions are often designed such that the loan does not exceed the value of the home. Normally, reserved mortgages work differently from other mortgages. In traditional mortgages, the borrower makes monthly installments to repay the mortgage. In reserved mortgages, however, it is the opposite. Depending on the value of the home, the lender makes payment to the borrower. The borrower could choose to receive regular cash for a certain period or a lump sum.
When you do not intend to move on, Futara Mortgage offers you the option to access a reserved mortgage. Again, these mortgages are appropriate when you want to supplement your income with your home equity. Also, the homeowner should be able to maintain the home. Reserved mortgages for seniors have some advantages.
1. Easy to qualify.
As opposed to other traditional loans, qualifying for reserved mortgages is usually easier. One of the reasons for easy qualification is because the mortgage does not need to be paid until the homeowner moves out or dies. On the other hand, the requirements for reserved mortgages are usually simple. 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. Usually, the credit score and the income of the homeowner do not matter in reserved mortgages.
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. Reverse mortgage is not paid until the last homeowner moves out of the house or dies. The payment you receive is also tax-free since it is not earned income.
3. The home is still yours.
Usually, many homeowners appreciate reversed mortgages because they remain in their homes. Again, you do not lose any control on the home and you are responsible for all maintenances including homeowner’s insurance. If it pleases you, you may sell your home and pay your mortgage.
If you find that a reverse mortgage is good for you, Futura Mortgage gives the opportunity to accesses an improved mortgage.