Reverse Mortgage offers a second chance to life

By: Antonio Redford
Who says that life begins at forty? Today with the evolution and revolution of so many things, life too, has been highly influenced. The United States of America is one nation that has been progressing at a great pace and at the same time makes sure that the citizens of the county are happy staying in their nation. When we talk about the people of any nation, how can we manage to overlook the senior citizens of that nation? Thanks to this concern for the senior citizens of America, one can say that life now begins at sixty. With facilities like reverse mortgage gaining more popularity among the senior citizens of America, it seems that now they can actually live their dreams that they had left unfulfilled.
Now let us understand what a reverse mortgage is. A reverse mortgage is a kind of a loan that is made available to senior citizens of the age of sixty-two years and above. A reverse mortgage can be used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves. In a typical mortgage, the homeowner has to make a monthly payment to the lender and after each payment, the equity increases within his or her property, and typically after the end of the term, i.e. the year for which the loan has been taken, the mortgage is paid in full and the property is released from the lender.
However, in a reverse mortgage, the house owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, then the debt on the property increases each month.In a reverse mortgage, the loan is repaid when the homeowner or the spouse no longer occupies the home of the borrower. The bank or loan lender sells the house and then uses the funds to pay back the outstanding loan. If there is any money left over after the loan is repaid, then it goes to the homeowner or their estate. Essentially, the loan is not repaid until you no longer have use or need of your home.
There are n numbers of reasons why a reverse mortgage can be useful, the first and foremost reason being that the amount that the borrower incurs from the reverse mortgage can actually help to finance many things. Moreover, the borrower can stay in his or her home despite the fact that it has been mortgaged to the lender. In any other kind of mortgage loan, the borrower has to leave the house that he has put up as the mortgage.
Though reverse mortgage was introduced around twenty years back in the United States, it has been just three years that it has gained popularity. A reverse mortgage can be the answer to any sort of a financial help that the senior citizens of America want. Therefore, when one has an option like reverse mortgage, then why one should depend on anybody for any kind of a financial help. Just help yourself with a reverse mortgage and start your life at sixty or more precisely, sixty-two.
http://www.articlecube.com