Friday, March 6, 2009

Reverse Mortgage: Who is Eligible?

If you have ever taken out a loan, you probably know that it can be a stressful undertaking. First, you have to find out if you even qualify to take out a loan. Then you have to decide how much money you want to borrow and if you are eligible to borrow the amount that you need. This process does not have to be so stressful however, especially if you do a little research before you dive into the process of taking out a loan.

If you are looking into your options for borrowing money, you may have heard of a reverse mortgage and are probably wondering not only what this type of mortgage is, but who is eligible to apply for it. If you are a home owner, you have met the first criteria in qualifying for this type of mortgage. The second criterion is a little trickier and involves figuring out how much of the value of your home you own.

Basically, in order to qualify for a reverse mortgage, you must own a portion or all of the value of your home. So, if the majority of the value of your home is still tied up in your traditional mortgage, this reverse type of mortgage may not be the right option for you. However, if you have paid off most or all of your traditional mortgage and own a large portion of the value of your home, you may be a perfect candidate for this reverse type of mortgage.

If you meet the criteria of being a home owner and owning the majority of the value of your home, it is probably a good idea to make your next step to speak with reverse mortgage lenders. These professionals will be able to not only find out if you truly qualify to take out a reverse mortgage, but they can also figure out how much your qualify to borrow on the value of your home.

When you meet with reverse mortgage lenders, it can help to have a list of questions prepared to bring with you to the meeting. Taking out this type of loan is a big decision, so be sure to have all of your questions and concerns addressed before moving forward with your decision. The other good thing about meeting with these lenders is that they will discuss the terms of your reverse mortgage with you. These terms can include such things as when you will be required to begin repaying the money that you borrow and any other special conditions to your loan.

There are many things to take into consideration when you are thinking about borrowing money. You will first need to decide which type of loan is right for you and then make the important decision of how much money you need to borrow. It is also very important to take into consideratio

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