Interest Only Mortgage
Differences between Mortgage and Reverse Mortgages
There are many different types of mortgages, each with its own advantages and disadvantages, it is very important that you do your research. Understanding these differences will enable you to choose the right mortgage for your financial situation and housing goals. Now, what is a mortgage? A mortgage is a loan secured by a property / house and paid in installments over a specified period. The mortgage secures your promise that the borrowed money will be refunded. For most of us, is a mortgage is the largest and most serious financial commitment we ever make.
You can get one mortgages directly from lenders such as banks, building societies and specialist mortgage lenders, or you can use a mortgage broker. You can buy based on "information" only or get advice and recommendation on a mortgage that fits your specific needs.
The two main ways to repay your mortgage is 'Repayment' and 'interest only'. With a repayment mortgage you make monthly repayments for an agreed period of time until you have paid back the loan and interest (30 years fixed rate is a common example). With an interest only mortgage you make monthly repayments for an agreed period, but these will only cover the interest on your loan (Example 5 years fixed rate). You will also normally have to pay into another savings or investment plan that will hopefully pay off the loan at the end of the term.
Now you know what mortgage is, let's take a moment to understand reverse mortgages. What exactly is a reverse mortgage?
Reverse mortgages will be more and more common in those days. Why? Reverse mortgage loan advances are not taxable, and generally does not affect your Social Security or Medicare benefits. You retain title to your home and you need not make monthly repayments. The loan must be repaid when the last surviving borrower dies, sells the home or no longer lives at home as a principal residence. Unlike a conventional mortgage, the homeowner no payments and all interest is added to the mortgage on the property.
A reverse mortgage is designed specifically for homeowners who are 62 years and older. Through this product, you can receive loan money from your home in the form of a lump sum, regular monthly checks or a bank overdraft. The money is typically repaid with interest when you sell your house, permanently move away or pass away.
You may be wondering how you can benefit from getting a reverse mortgage. Many people have found that the money they got from a reverse mortgage enjoyed them very much. With a reverse mortgage you continue to get revenue, and defer repayment for as long as you live at home – however long that may be. A reverse Mortgage maybe exactly what you need!
There are many advantages to a reverse mortgage can give you. But here are a few of the most significant. You will remain independent, no monthly mortgage payments are required, and you got the freedom and flexibility. The money you get from a reverse mortgage is yours to spend on any way you choose.
Exciting is not it? If you do not know exactly how much you spend or how fast you need it, a line of credit sense. Some reverse mortgage lines of credit are "growing" credit lines means you can have more and more money available to you as time passes. Reverse mortgages has helped hundreds of homeowners improve their quality of life in retirement. A Reverse Mortgage can help you retire comfortably. It can give you money when you need the most. No monthly mortgage payments, Easy Qualifying Tax-Free Money and No cash needed for closing costs. Can it get better? If you want to find out how much money you're entitled to, and if you qualify, give us a call at (800) 630 to 0,650.
Tim Jacobs
Golden Years Mortgage Solutions
Your Money … When you need it
www.GoldenYearsMortgageSolutions.com
(800) 630-0650
tim@goldenyearsmortgagesolutions.com
Tim Jacobs @ Golden Years Mortgage Solutions www.GoldenYearsMortgageSolutions.com (800) 630-0650 tim@goldenyearsmortgagesolutions.com Golden Years Mortgage Solutions is a reverse FHA approved mortgage lender. We have helped thousands of senior homeowners solve their financial problems. Our agents and brokers together have over 60 years experience in Reverse mortgages and general financial services, including executives who are industry pioneers with over 12 years of reverse mortgage experience. Our dedication to providing financial solutions for seniors shown by the number of referrals coming from our existing customers.
About the Author
Tim Jacobs @ Golden Years Mortgage Solutions www.GoldenYearsMortgageSolutions.com (800)630-0650 tim@goldenyearsmortgagesolutions.com Golden Years Mortgage Solutions is a reverse mortgage approved FHA Lender. We’ve helped thousands of senior homeowners solve their financial problems.