Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
Reverse mortgages, available to seniors who have clear title on their home, allow them to use the equity in the home to provide either a lump sum of money or money distributed through multiple payments. Interest on these loans is added to the lien on the property which becomes due and payable on the owner’s death, the sale of the home, or if the owner moves to an old age home.
Like any mortgage, home insurance is required to protect the lender for the duration of the loan. The lender will require proof of insurance and a copy of the insurance declaration page, showing the name of the insurance company, the policy term, the insured, the amount and type of coverage, will usually suffice.
The home must be insured to 100% of the replacement cost of the reconstruction value so that the home can be rebuilt and the lender will be protected in the event of a loss, such as fire. It's important that any improvements made to the building are reported to the insurance company to ensure the value is accurate, and if you live in an area that is subject to flood or earthquake, to arrange coverage for these perils.
- 3 Factors that Can Negatively Affect Your Mortgage Application
- What Lenders Don't Reveal About Home Equity Loans
- 3 Reasons Banks Reject Short Sales
- How to Get Approved for an FHA Loan despite Bad Credit
- 3 Warning Signs of Loan Modification Scams
- Should You Refinance? Make Sure the Timing is Right
- Alternatives to Getting a 2nd Mortgage
- Second Mortgages: Advantages and Disadvantages
- Short Selling a Rental Property