A reverse mortgage is an increasingly popular consumer loan for senior homeowners age 62+. It allows these senior homeowners to tap into the home equity that has been built up. There are no monthly mortgage payments, but homeowners are still responsible for paying property taxes, insurance, and maintenance. The repayment of the loan is deferred until the homeowner dies, sells, or moves out of the home. Because there are no monthly mortgage payments and homeowners can generally receive their home equity as tax-free cash this particular type of loan has seen over 1,000,000 seniors take advantage.
DOWNLOAD PDFTo qualify for a reverse mortgage loan, you must own a home, be at least 62 years old and have enough equity built up in your home. The loan works by making payments to the borrower based upon a percentage of the equity that has been built up in the home. The loan is repaid when the borrower sells the home, moves out of the home or dies. The factors which impact the loan amount for which you may be eligible for include your age, the value of your home, interest rate and whether your home conforms with the Federal Housing Administration’s (FHA) mortgage limit of $765,600.
There are several considerations to make before deciding to proceed with a reverse mortgage loan. As with any large decision, it’s helpful to have an understanding of the pros and cons associated. Some of them include:
Pros:
Cons:
The process of getting a reverse mortgage loan is pretty straightforward and typically entails the following steps:
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At Lenderment, we fit the mortgage to the buyer, not the buyer to the mortgage. It’s why we offer a variety of mortgage loan options with highly competitive rates. Let our experienced team find what’s right for you. We’ll keep it simple and straightforward. We are licensed in Illinois, California and Florida.