Sunday, March 16, 2008

Earn more with annuity reverse mortgage

An annuity reverse mortgage is quite different from other regular and not so traditional mortgages. However, it is more beneficial for the policy holder. Well, annuity reverse mortgage is where a senior citizen can borrow against the equity in their home to receive payment in a form of monthly payment or lump sum. Hence, it is advisable to opt for this kind of reverse mortgage because it offers great benefits.
With the time, the loan balance decreases, as the insured is able to pay the amount of equity in allocated tenure. In this kind of loan, the borrowers receive money for the equity in their homes. As they receive money, the equity in their home declines and their loan balance increases. However, an annuity reverse mortgage should not be confused with a home equity loan or home equity line of credit, as both of these are ways of obtaining money for the equity in a home. With either of these, the borrower must pay at least the monthly interest that is levied on the loan amount received, or the amount that they have drawn from their equity line. However, a reverse mortgage client does not have to pay anything until the loan is paid off. However, it is quite different for annuity reverse mortgage. However, there are various types of annuity reverse mortgages available and can be quite expensive in comparison to regular mortgages. The annuity mortgages are more beneficial in terms of money to the insured person.
Well, the kinds of annuity reverse mortgages currently available today include reverse mortgages offered by state or local governments often referred single purpose reverse mortgages. These annuity reverse mortgages are the least expensive. Moreover, they can be restrictive also, on how the money is distributed and can be used. The other one is federally insured home equity conversion mortgage. These annuity mortgages are less expensive than other private sector reverse mortgages, but more expensive than the mortgages bought from the authorities. The third kind will be private sector or proprietary reverse annuity mortgages.
However, all these annuity reverse mortgages feature charge origination fees and closing costs. Therefore, if the person who is seeking this loan is still unsure, then it is advisable to hire an agent or a broker from a reverse mortgage firm to avoid any hassles in future. In fact, it will benefit them more, if the borrowers acquire knowledge on such reverse mortgages, so that the company or the broker cannot misguide him or her. Likewise conventional reverse mortgages, the annuity mortgage has to be paid when the last owner of the property named on the loan dies, the homeowner sells the home r has permanently move out of the home. However, prior to any of these conditions, nothing needs to be paid on the loan. There are also default conditions that can cause repayment of the loan which are similar to default conditions for other mortgages e.g., declaration of bankruptcy, donation of the home, abandonment of the home, fraud or misrepresentation, and more.
Antonio Redford is a legal expert. He gives advice to clients who are looking for expert counsel on reverse mortgage. For more queries about Reverse mortgages,annuity reverse mortgage,American reverse mortgage, annuity reverse mortgage visit on www.reverse-mortgage-seniors.com



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