Article Sphere Logo
 

Reverse Mortgage Types

By Expert Author: Dennis Estrada Platinum Expert Author | Article Abstract
Word Count: 320 words | Views: 87 view(s)
The reverse mortgage helps the seniors over sixty two years old to use the equity of the home to supplement an existing income. Reverse mortgage is loan advance to the home without repayment unless the owner moves, dies, or sells the home.

In the United Kingdom, reverse mortgage is more common as lifetime mortgage. Hence, the owner never needs to repay as long as the owner lives in the home. The reverse mortgage lenders distribute the cash as lump sum, regular payment, credit line, or combinations.

In the United States, the basic types of reverse mortgage are single purpose reverse mortgage, federally insured reverse mortgage, and proprietary reverse mortgage. There may be more types in different countries, but the main idea is very similar.

Single Purpose Reverse Mortgage

The government agencies and non profit organizations offer this type of reverse mortgage. It is generally low costs. Although the government agencies may be local or state, the mortgage is available in a few locations only. The purpose of reverse mortgage is specific such as home repair, home improvements, and property taxes. And, the owner earns low or moderate income.

Federally Insured Reverse Mortgage

The U.S. Department of Housing and Urban Development (HUD) backs this type of reverse mortgage. This type is more commonly known as Home Equity Conversion Mortgages (HECM). The upfront costs are high especially if the owner stays in short period of time. So, this reverse mortgage is costlier than Single Purpose Reverse Mortgage.

It is the opposite of Single Purpose Reverse Mortgage in which the reverse mortgage loan can be used in any purpose. And, the mortgage are widely available anywhere. There are also no income or medical requirements.

Proprietary Reverse Mortgage

The private companies backed or owned this type of reverse mortgage. It is generally the most expensive type of reverse mortgage. However, the owner may get more than other types of reverse mortgage. Generally, it works the same way as the Federally Insured Reverse Mortgage.
Dennis Estrada

About the Author/Author Bio

Dennis Estrada is a webmaster of mortgage calculators, reverse mortgage, and jumbo mortgage loan website.

Article Source: http://www.articlesphere.com/Article/Reverse-Mortgage-Types/92764

Article Tags: reverse mortgage

Article Submitted: 2007-06-23 | This Article has been viewed 87 times.

Rate Article

Related Videos

A Reverse Mortgage
Learn about Mortgage Rates and Points
Home Loan Mortgage Choices for your Next Home
How to Lock Your Mortgage Rate Before Lender Hikes It
Your Mortgage Decision And Discipline
 

More "Mortgages Refinance" Related Articles

 
 

Listed below are more articles related to the above article from the "Mortgages Refinance" article category.

People interested in the above article "Reverse Mortgage Types" are also interested in the related articles listed below:

 
Financial analysts have been predicting that the commercial property sector will also undergo a crisis that might even be worse than the collapse experienced in the residential housing market. The increasing number of vacancies in commercial properties and the unchecked increase in the unemployment rate are harbingers of potential serious problems in this particular market.
There are a lot of options available in the mortgage banking industry for those with poor credit. However, this is not an easy undertaking. A mortgage is a long term commitment, usually for thirty years, so you definitely want to find a loan that will be manageable over the long haul. You will need to do some research and weigh your options.
Are you ready to buy a Canadian home? You're going to need a Canada mortgage. Have you checked the going rates? Don't know yet how to get the best rate? Your credit rating needs to be extra good to get the best rate. For more tips on getting a low mortgage, read this article.
Though there are programs in place that the federal government is supporting to hopefully keep more families in their homes, there have been some serious pitfalls in the actual workings of these programs to the dismay of many struggling home owners.
There are a few things you need to provide to the bank when you qualify for Los Angeles bank foreclosures. These things include proof of employment, a down payment, and your credit scores. The bank will look at each of these things differently when they make a decision on whether or not they should give you a loan.
If you are looking to buy your first home, there are some basic things that you should know about mortgages. Mortgages are basically the holding of the interest in a property in exchange for a loan. In the US, mortgages can be held by a bank or more commonly the mortgage is sold to Fannie Mae or Freddie Mac for the purpose of ensuring that mortgages are available equally across the nation.
Are you thinking of applying for a Canadian home equity mortgage loan? Do you need to work on your finances? How is the equity in your home? What will you do with your loan money? Are you ready to apply for your loan? How is your credit? For tips on getting an equity loan read this article.
 
Article Directory Home All Categories Finance Mortgages Refinance
 

Can't find what you're looking for? Try Google Search!
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.

Afrikaans Albanian Arabic Belarusian Bulgarian Catalan Chinese (Simplified) Chinese (Traditional) Croatian Czech Danish German English Estonian Filipino Finnish French Galician Greek Hebrew Hindi Hungarian Icelandic Indonesian Irish Italiano Japanese Korean Latvian Lithuanian Macedonian Malay Maltese Dutch Norwegian Persian Polish Portuguese Romanian Russian Serbian Slovak Slovenian Spanish Swahili Swedish Thai Turkish Ukrainian Vietnamese Welsh Yiddish