Abstract:
In this paper we will discuss about the reverse mortgage in the United States of America. Many American banks offer reverse mortgage loans to the senior citizens.
Like in many other countries, reverse mortgage in US is also given to the senior citizens only. The amount of loan is dependent on the value of the mortgage properties.
The reverse mortgage loan helps the senior citizens to live happily after retirement without any hazard caused by financial problems.
Eligibility:
(1) The candidate must be a senior citizen, that is, at least 62 years old.
(2) There is no need of any minimum income or good credit history.
(3) There is no need of any earning verification or FICO scores.
(4) The housing properties should be free from encumbrance.
The rate of the reverse mortgage loan is set by the LIBOR index or the U.S. Treasury 10 year T-Bill. The loan amount is dependent on the age of the borrower. The cost of a reverse mortgage loan taken from a private sector lender may go well beyond the costs of equity conversion loans or other types of mortgage.
However, several American banks provide reverse mortgage loans to the senior citizens. Different banks have different terms and conditions. The reverse mortgage terms and conditions vary from state to state.