Posts Tagged ‘reverse mortgages dallas’

A reverse mortgage is a home equity conversion. Reverse mortgage payments to the borrower can either be disbursed monthly or a one time payment. A reverse mortgage is secured by a deed of trust. The mortgage becomes due and payable when a borrower dies and the property is not the principal residence of at least one surviving borrower.

 

If the property is sold, or transferred without retaining at least one of the borrowers on title the note also becomes due and payable. Once the request is made the borrower has thirty days to pay, sell the property, or give the lender a deed in lieu of foreclosure to satisfy the loan.

 

The benefits of a reverse mortgage are having tax-free funds as long as you live in your home. The reason the money is tax-free is because it is loan money. The loan does not have to be repaid as long as you live in the home. This also applies if you have to move to assisted living outside of the residence. There typically is not an income, medical or credit requirement. You do retain ownership of your home for your life as long as you reside in the home and pay all insurances and taxes, along with maintaining the home.

 

This type of loan can be a way to pass your estate to your loved ones while alive without tax penalties. How you spend the money is up to you, just remember a reverse mortgage is a lender using the equity in your home, which has to be free and clear of any other lien, to give you a reverse mortgage.

 

If you are planning to leave your home to dallas reverse mortgage loans relatives, they would have to satisfy the reverse mortgage loan to keep the home from going into foreclosure.

 

A reverse mortgage is not the full value of the home. The value limit is based on the lowest selling margins for your area. So if your home is worth $431,000 in today’s market the home value limit may be $362,790 yielding a loan principal limit of approximately $259,395 minus all fees to be approximately, $17,125 to give you $236,621 as your net principal limit. This is based on the borrower taking monthly payments which yields a higher amount of a loan given versus taking a one lump sum which yields less benefit of the equity.