Older homeowners (62 years and older) can take advantage of reverse mortgages. A reverse mortgage allows a homeowner to have an immediate full payment, monthly advances, or a credit line based on the equity of the home. This type of loan is ideal because it requires no monthly payments. In actuality, the lender pays the homeowner instead of the usual reverse, hence the name of the mortgage. Also, borrowers may receive fixed monthly payments, if they choose to do so, for as long as a they live, even if the amount surpasses the value of the home. If when the borrower dies, money is owed to the lender, it is covered by insurance, for example, by the FHA, or a third party, and never by the borrowers estate.
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Homeowners may find that there are more ways to fund home improvement that they expect. A large variety of loans exist to help homeowners finance repairs.
With the current low interest rates, a homeowner may also look into refinancing, but this should only be done if interest rates are considerably less than the original mortgage rate. A current mortgage can be refinanced at a much lower interest rate for a larger amount, giving the homeowner the funds for home improvement and also, saving the homeowner money in interest payments.
A recent AARP study found that 83% of older homeowners have no interest in moving. Though selling values may increase, many homeowners find it impossible to place a monetary value on the home where they have lived for years or even decades. In these cases, homeowners find it more desirable to modify or improve the homes they own rather than purchase new ones. If you are a homeowner wanting to make home improvements, apply online free to contact up to four lenders about home improvement loans.