Features of a Florida Reverse Mortgage
What should I know about Florida reverse mortgage?
If you are over 61 years of age and own your principal residence, you are eligible for a Florida reverse mortgage. A Florida reverse mortgage may be the ideal vehicle for people who are on a fixed income and need some extra money to fund projects they want to accomplish in their retirement. For many people, their house is their single biggest asset and the equity remains untapped.
What are the significant features of a Florida reverse mortgage?
The two most significant features of a reverse mortgage is that you retain the title to your home and the loan must be repaid when you or your spouse - whomever lives longer - passes away, sells the property, or no longer uses in the property as their principal residence.
Since a reverse mortgage is a loan, the money received is not taxable as income.
There are some things to consider prior to taking a Florida reverse mortgage the most important factor being that it is still a home loan and subject to many of the same rules and obligations. Origination fees and closing costs must still be paid to the lender.
Like conventional home mortgages, the lender may charge service fees during the whole term of the mortgage.
Like conventional home loans the reverse mortgage loan may have fixed or variable rates. Many times variable rates are tied to a particular financial index and fluctuate with the state of the market.
Like a conventional mortgage, the interest rate is tax deductible when you are paying the lender.
That means you can only avail yourself of the benefits of tax deduction when you are settling the loan, not while you are receiving funds.
More Florida Reverse Mortgage Information:
Florida Reverse Mortgage | 4 Steps for Reverse Mortgage | Ask Yourself This... | Lump Sum or Monthly Payments | Must Do Things for a Florida Reverse Mortgage Loan | Retirement Tips | Reverse Mortgage | Feautures of a Florida Reverse Mortgage