Bank of America Reverse Mortgage is the home loan that is given to the senior citizens in which the equities are converted into cash. Reverse mortgage is therefore a bliss that is used by many senior citizens who have no mean of any income. To get Bank of America reverse mortgage one must first qualify to get the loan. These conditions are:
- Must be 62 years of age or more than that
- Must have his or her own home and living in the same at the time of reverse mortgage
- Mortgage balance at the time of reverse mortgage should not be more
Now, the amount that is given to the borrower as reverse mortgage from Bank of America depends upon the age of the applicant. Other things that matter are economic condition, interest rate and value of the home. After taking the reverse mortgage, you still have to make the payments of property taxes and other associated insurance.
Bank of America Reverse Mortgage: Types and Features
Bank of America reverse mortgage are of two types:
- Home Equity Conversion Mortgage (HECM)
- Senior Equity Reverse Mortgage Platinum
Both these Plans of BofA reverse mortgage include:
- No repayment is made till you live in your home.
- You are eligible to make decision on how to get the payment. It can be in monthly installments, line of credit or lump sum. Along with this two options of getting the payment can also be combined
- The title of the home is retained by you and can live there as long as you wish to live
- the amount owed will never increased the appraised value of the home. The difference between loan amount and home value is taken care by Bank of America
On the other hand Home Equity Conversion Mortgage (HECM) is available for manufactured homes. Under Senior Equity Reverse Mortgage Platinum, the amount can be used to buy a new home and you can also keep some part of of your home equity for your kids. Now if the borrower has passed away, sold the home or not living in the same home for more than 12 months then the reverse mortgage with touch the maturity and will make the balance as due and payable. Along with this transference of title, non-payment of property tax, not able to maintain the home and keeping it uninsured will also lead to the same.
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