Real Estate Guide 2010: Myths and misconceptions of reverse mortgages | TheFencePost.com
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Real Estate Guide 2010: Myths and misconceptions of reverse mortgages

A reverse mortgage is a special type of home loan that allows a homeowner who is at least 62 years of age to convert a portion of the equity in their home into cash. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower no longer uses the home as their principal residence.

How does it work? The interest on this type of loan is paid when the home is eventually sold and the loan is paid in full. The interest accrues onto the loan balance each month based on the amount of the cash that has been borrowed against either an available line of credit, monthly income payments to the borrower, the full amount of the loan that could be taken out at closing or a combination of the three.

With a traditional home-equity line of credit, the homeowner must qualify based on personal income and then make monthly payments to the bank consisting of principal and interest. The reverse mortgage does not require any income qualification and there are no monthly payments.



There are several myths and misconceptions about this type of loan that we would like to address here:

A reverse mortgage is a special type of home loan that allows a homeowner who is at least 62 years of age to convert a portion of the equity in their home into cash. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower no longer uses the home as their principal residence.



How does it work? The interest on this type of loan is paid when the home is eventually sold and the loan is paid in full. The interest accrues onto the loan balance each month based on the amount of the cash that has been borrowed against either an available line of credit, monthly income payments to the borrower, the full amount of the loan that could be taken out at closing or a combination of the three.

With a traditional home-equity line of credit, the homeowner must qualify based on personal income and then make monthly payments to the bank consisting of principal and interest. The reverse mortgage does not require any income qualification and there are no monthly payments.

There are several myths and misconceptions about this type of loan that we would like to address here:

A reverse mortgage is a special type of home loan that allows a homeowner who is at least 62 years of age to convert a portion of the equity in their home into cash. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower no longer uses the home as their principal residence.

How does it work? The interest on this type of loan is paid when the home is eventually sold and the loan is paid in full. The interest accrues onto the loan balance each month based on the amount of the cash that has been borrowed against either an available line of credit, monthly income payments to the borrower, the full amount of the loan that could be taken out at closing or a combination of the three.

With a traditional home-equity line of credit, the homeowner must qualify based on personal income and then make monthly payments to the bank consisting of principal and interest. The reverse mortgage does not require any income qualification and there are no monthly payments.

There are several myths and misconceptions about this type of loan that we would like to address here:

A reverse mortgage is a special type of home loan that allows a homeowner who is at least 62 years of age to convert a portion of the equity in their home into cash. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower no longer uses the home as their principal residence.

How does it work? The interest on this type of loan is paid when the home is eventually sold and the loan is paid in full. The interest accrues onto the loan balance each month based on the amount of the cash that has been borrowed against either an available line of credit, monthly income payments to the borrower, the full amount of the loan that could be taken out at closing or a combination of the three.

With a traditional home-equity line of credit, the homeowner must qualify based on personal income and then make monthly payments to the bank consisting of principal and interest. The reverse mortgage does not require any income qualification and there are no monthly payments.

There are several myths and misconceptions about this type of loan that we would like to address here:

A reverse mortgage is a special type of home loan that allows a homeowner who is at least 62 years of age to convert a portion of the equity in their home into cash. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower no longer uses the home as their principal residence.

How does it work? The interest on this type of loan is paid when the home is eventually sold and the loan is paid in full. The interest accrues onto the loan balance each month based on the amount of the cash that has been borrowed against either an available line of credit, monthly income payments to the borrower, the full amount of the loan that could be taken out at closing or a combination of the three.

With a traditional home-equity line of credit, the homeowner must qualify based on personal income and then make monthly payments to the bank consisting of principal and interest. The reverse mortgage does not require any income qualification and there are no monthly payments.

There are several myths and misconceptions about this type of loan that we would like to address here:

A reverse mortgage is a special type of home loan that allows a homeowner who is at least 62 years of age to convert a portion of the equity in their home into cash. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower no longer uses the home as their principal residence.

How does it work? The interest on this type of loan is paid when the home is eventually sold and the loan is paid in full. The interest accrues onto the loan balance each month based on the amount of the cash that has been borrowed against either an available line of credit, monthly income payments to the borrower, the full amount of the loan that could be taken out at closing or a combination of the three.

With a traditional home-equity line of credit, the homeowner must qualify based on personal income and then make monthly payments to the bank consisting of principal and interest. The reverse mortgage does not require any income qualification and there are no monthly payments.

There are several myths and misconceptions about this type of loan that we would like to address here:

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