Ohio Reverse Mortgages

Written by Michael Federico
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Ohio reverse mortgages are making it possible for older residents to maintain ownership of their homes while receiving loans that can be used for non-real estate expenses. A reverse mortgage differs from a standard, or forward, mortgage in several ways. With a mortgage, people are required to make payments to the lender each month. A reverse mortgage usually results in the homeowner receiving regular payments from the lender.

A reverse mortgage is similar to a home equity loan, because it allows people to "cash in" on the money they have in their houses. However, reverse mortgages were designed specifically for older residents who may not have a steady income or large sums of money, but have accrued high amounts of home equity over the years. In most cases, a reverse mortgage is not paid off like a standard equity loan, either. Many loans do not have to be repaid while the borrower remains in the house. In return, the lender holds the majority of, if not all of, the home equity.

Positives and Negatives of Ohio Reverse Mortgages

A person who gets an Ohio reverse mortgage can use the money from the loan for anything. It does not have to be put back into the house. A person can cover medical or travel expenses or he can pay off debts. Another positive aspect of reverse mortgages is that most lenders do not have a minimum income requirement. This means that retirees will not be penalized for no longer working.

The downside to reverse mortgages is that they are usually more expensive than standard mortgages. Also, many lenders have seized the opportunity to take advantage of people whose only assets are their homes. Before working with a lender, a person should do thorough research on the company's business practices.

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