Living on a reduced income can be very difficult with expenses for everyday life growing higher. Whether it's the cost of gas, the higher cost of food or the higher cost you may be paying for utility bills, living on a fixed income can be very challenging in this reverse mortgage lending economic environment. That's why many people, who are currently retired, look for ways to increase their monthly income.
Some people look to take on a part-time job. However, not everyone is in a position where they can work either part-time or full-time hours. In these situations, these people will look for alternative methods of increasing their monthly income. If you are in this particular situation, you may want to consider contacting Security 1 Lending to inquire about possible options.
One option that many retirees use is a reverse mortgage. These mortgages allow a mortgage company to pay you a monthly payment pursuant to the amount of equity you have in your home. If you own your home outright, or you have a great deal of equity in your home, you can leverage the value or equity of your home in order to open up an extra stream of revenue to help increase your monthly income.
There are many questions people have about reverse mortgages, and it's important to have those questions answered before you decide on this particular option. One common question is what to do if the value of your reverse mortgage is more than the value of your home. While a reverse mortgage lender may not loan you money in excess of the value of your home, depending on certain extenuating circumstances, your home may experience a loss in value over time.
If your home drops in value, the mortgage company will not be able to ask for more than what your home is worth. In most cases, these reverse mortgages won't have to be repaid unless you and your spouse die. However, if you move, your mortgage will become due. Lenders are prohibited under federal law from asking for more money to repay the mortgage than what the house is worth. In these situations, the mortgage company will take out mortgage insurance. This typically increases the cost of a reverse mortgage, but it covers any losses that a lender may take if the house does depreciate in value.
There are many other questions that you may have about reverse mortgages. If you've searched