What Is A Reverse Mortgage?
A Reverse Mortgage allows homeowners 62 years of age or older to take advantage of the equity in their home. The funds can be used for:
- Pay off existing mortgage
- Monthly bills or medical expenses
- Debt relief
- Gain financial flexibility
Who Is Eligible for A Reverse Mortgage?
The great thing about Reverse Mortgages are that there are no income or credit requirements and the only guidelines are that you must be older than 62 and must have sufficient equity in your home.
How Exactly Do They Work?
The first step in obtaining a Reverse Mortgage is to apply, just as you would for any other type of loan. If approved, you may choose to pay off your current mortgage or you can use choose to receive the proceeds from the Reverse Mortgage as a recurring monthly payment, a single lump sum, or a a line of credit.
If you choose not to make regular payments on your Reverse Mortgage, the amount you owe will increase with time. This will reduce the amount of equity you will have in your home. When the term on the Reverse Mortgage ends, you will either owe the amount of the home's value or the amount of the mortgage (whichever is less).
Reverse Mortgages allow you to maintain the property's title, meaning you will still own the home. All other expenses, such as property taxes and insurance will also still be your responsibility. You won't have to pay back the loan until you no longer occupy the home.
If you'd like to learn more about Reverse Mortgages, speak with one of our Mortgage Experts to determine whether you qualify for a Reverse Mortgage and get you on your way to financial freedom!