What is a reverse mortgage?
A reverse mortgage is a loan that a senior citizen may take out on his/her home to convert the home equity into cash. Based on the applicant’s age, the value of the home and its location, reverse mortgages supply either a lump sum payment or a monthly stipend or a credit line. No payments are made on the mortgage until the borrower dies or puts the home up for sale.
A reverse mortgage is offered to homeowners that already own their home and have reached an age (senior citizenship) where they want to withdraw the equity they have accumulated in their home. The money you desire to extract can be taken out as either a lump sum, monthly payments, or can be used as a line of credit. Typically, this type of loan is re-paid when the last surviving borrower no longer resides in the home for more than 12 months. The home is then sold to repay the loan. Reverse mortgages are not available from all mortgage lenders. If this is a loan you desire, then you should check with each lender you wish to contact on here to learn the specifics of the reverse mortgage programs that they may have available. You as the homeowner would still be responsible to pay all of your homeowner taxes, homeowners insurance, and general repairs on the home.
A reverse mortgage is a loan borrowed against your property’s value and does not have to be repaid at a predetermined date. The loan continues (without any payment from you) as long as you: • Live in the home as your primary residence. • Make necessary home repairs. • Pay your property taxes. In short, it’s a loan in reverse, where the lender or bank pays you, enabling you to turn the value of your property (single family home, condos and manufactured homes , etc.) into cash. You or your estate will pay the money back plus interest when you permanently move out of your home. In addition to using a reverse mortgage on your current home, you now also have the option of using a reverse mortgage to finance the purchase of a new home. If you are considering moving, we can help you learn more about Reverse Mortgage for Purchase. You can also try our Downsizing Calculator to see how a reverse mortgage for purchase might help in your situation. Important notes: • You always retain title and ow
