What Is A Reverse Mortgage?
A reverse mortgage is a special type of loan made to older homeowners to enable them to convert the equity in their home to cash so homeowners can finance living expenses, home improvements, in home health care, or other needs.
An older homeowner may wish to use a reverse mortgage in order to pay their living expenses. In this situation, the LENDER is now making payments to the BORROWER.
This process permits older people to stay in their homes without having to continue monthly payments. There are a number steps involved in setting up a reverse mortgage.
If a home is owned outright by someone who is 62 years of age or older and has no tax liens or other debt, they may qualify for a Reverse Mortgage.
If you choose a Reverse Mortgage, you have the option to receive your payments as: lump sum payment, fixed monthly payments for life, or a line of
Should the homeowner sell the property, it is possible to have an annuity in effect that will provide ongoing monthly income.
The amount of money that the homeowner may receive will depened on type of reverse mortgage, the borrower’s age and current interest rates, and the home’s property value. “Projected Life Expectancy” is used to determine the amount of the monthly payments or credit lineSeniors do not have to meet income or credit requirements to qualify for a reverse mortgage.
Reverse Mortgage features:
- No monthly payment. Instead, you are paid each month.
- No income or credit qualifying needed.
- You maintain title and ownership of your home.
- Proceeds from a Reverse mortgage are not subject to personal income taxation.
- It is not a government grant, but a loan that is repaid in the future.
- Can be used only for the borrower’s primary or principle residence.
Our reverse mortgage specialists can help you tap into the equity that has accumulated in your home so you can use the funds. The proceeds can be used for any purpose and are available in a variety of payment methods such ascash payments, monthly payments, or an Equity Line.
When you choose our mortgage company, you can feel secure knowing you are workingwith a trusted leader. Contact us at (561) 123-1234.