Reverse Mortgage Types
Every one should be extremely cautious if a dealer tries to trade something like an annuity, and propose that a reverse mortgage would be a simple way to reimburse for it. If you do not know what they are advertising, be even more doubtful. Keep in mind that your sum cost would be the price of what they are selling plus the fee of the reverse mortgage.
Prior to considering any reverse mortgage, ask with financial advisor and be sure to realize the tax penalty. The three types of reverse mortgage are:
Single-purpose reverse mortgages, presented by some state and local government agencies and nonprofit minded organizations
Home Equity Conversion Mortgages, which are federally insured and supported by the Departments of Housing
Proprietary reverse mortgages, these are private loans backed by the companies that develop them
Single-purpose reverse mortgages have very low costs, but they have a number of restrictions. They are not accessible everywhere; they can be used only for one principle and in most cases you must have a reasonable income to be eligible for these loans.
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