What Pagadian City Zamboanga Senior Citizens Should Know About Reverse Mortgage Loans

There are different types of loans that are available nowadays which various people can take advantage of for a variety of reasons. One of these loans is the reverse mortgage loan. Senior citizens who are homeowners in Pagadian City Zamboanga and are at least 62 years old and above can apply for a reverse mortgage loan, which is also called as a home equity conversion mortgage.

With a reverse mortgage, you, as a senior citizen, will be able to convert a part of your equity into cold cash. In a traditional type of mortgage loan, the borrower makes monthly payments to the lender. However, in the reverse type of mortgage, it is the exact opposite. The lender makes monthly payments to the borrower. This is the reason why it is called reverse mortgage.

The aim of this product is to aid any retiree utilize the accumulated wealth in his home in Pagadian City Zamboanga as a means to pay for the basic monthly living expenses and health care of such senior citizen. The proceeds generated from this kind of loan is not limited nor restricted to these reasons, though.

There are a lot of factors that will help determine the specific amount which you will receive if you will apply for a reverse mortgage loan. One of these factors is age. In the case the borrower is a couple, the age of younger spouse will be the determining factor. Other factors include the interest rate, the value of the home in Pagadian City Zamboanga, and the appraised value or the mortgage limit, whichever is lower.

Depending on the kind of reverse mortgage that you took, the method on how you can collect payment may vary. If you have an adjustable-rate mortgage, you may receive your payment as a lump sum, as a line of credit, as a fixed monthly payment, or a combination of the three. However, if you have a fixed-rate mortgage, you will be receiving the payment through a lump sum amount.

If you sell the house or vacate it, that is the time that you will pay the loan back. No payment will be made by the borrower so long he is alive and lives in that property. In case of death, a family member living in the same home will have to pay for it or move out.