Many homeowners have found that a reverse mortgage is a great way for them to take advantage of the equity they have built up in their homes.
With a traditional mortgage you make monthly mortgage payments, but with a reverse mortgage the lenders pays you money through monthly installments or a one-time lump sum payment. The money that you receive is dependent on your age and the value of your home.
One of the great advantages of a reverse mortgage is that you are not required to pay the loan back until the home is no longer your primary residence.
Another great feature of a reverse mortgage is you can never owe more than the value of your home. No matter what. If you’re aged 62 or older and own your home you might be eligible for a reverse mortgage.
A reverse mortgage is a loan designed to allow seniors to draw upon the equity in their homes either by a lump sum payment or by monthly installments thus providing income even after retirement. The reason this type of mortgage is called a “reverse mortgage” is because the money goes directly to the home owner instead of into paying for the home.
Eventually the money paid to the homeowner is repaid with interest, however it generally doesn’t become due until the homeowner leaves the home due to death, move, etc.
Getting a reverse mortgage is a big step and needs to be carefully evaluated. Many people have found that by taking a reverse mortgage they avail themselves of the equity they have built in their home.
Something about it allows them to live without moving out of their home. Do they use the words “Draw down” when referring to equity.
Typically those who benefit most from a reverse mortgage are those who plan to stay in their homes over an extended period and have built a decent amount of equity in their homes. Also, the risk associated with a reverse mortgage is significantly lower than more traditional types of mortgages because you can never owe more than the value of your home.
Contact one of our professionals today to find out if you have enough home equity to make a reverse mortgage a good decision for you. If you have a good amount of equity in your home and you plan on staying there for an extended period of time then a reverse mortgage might be right for you.
If you own your home and are over 62 years of age you are eligible for a reverse mortgage. The home you are thinking of taking the reverse mortgage out on must generally be your primary residence. There are some conditions to what type of home may qualify.
You’ve worked hard to pay the mortgage on your home. With a reverse mortgage you can receive the equity that you earned. A federally insured reverse mortgage program will help you unlock that equity by increasing your monthly income. Rest easy knowing you’re protected because with a reverse mortgage you can: