What Is A Reverse Mortgage?
mortgages are a way for senior citizens to leverage the equity in their
homes without incurring extra monthly payments. It sounds too good to
be true, but itís really simple to understand how this works..
reverse mortgage is similar to a home equity loan in that it allows you
to borrow against the money you have already paid toward it. The
difference is that you donít have to pay it back until you move out,
sell the home, or die. That means that you get the benefits of a home
equity loan without the burden of making more payments.
can receive the proceeds from a reverse mortgage in several ways. You
can get a lump sum like you do with most loans. You can get a set
amount of money each month. Or you can get a line of credit that you
can borrow against as needed. The flexibility of how you get your money
is one of the most popular features of the reverse mortgage.
qualify for a reverse mortgage, you must be a homeowner who is at least
62 years of age. There are also certain requirements that your home
must meet. Some manufactured homes, dwellings with more than four
units, and cooperative housing are not eligible.
amount of money you can get from a reverse mortgage depends on how much
equity you have in your home. If you have an existing mortgage, the
proceeds of a reverse mortgage must be used to pay it off. But if you
qualify for more than you owe on your home, you can still receive funds
from the reverse mortgage. If you qualify for less than you owe, you
will have to make up the difference yourself. The advantage would be no
longer having a monthly mortgage payment.
key advantage of reverse mortgages is the lack of an income
requirement. Most loans require recipients to make a certain amount of
money in order to qualify. But because you do not incur a monthly
payment with a reverse mortgage, you can get one even if you have no
income at all. You also donít have to worry about losing your home,
because no payments are required as long as you live in it.
mortgage proceeds can be used in any way you see fit. Many seniors use
them to make needed repairs or additions to their homes or to pay
property taxes. But there is no limit to the ways you can use the money
from your reverse mortgage. It can be used to simply help make ends
meet, pay off existing debt, cover health care costs, or even to buy a
new car or take a vacation.
reverse mortgage must be paid off once the owner dies or ceases to live
in the home. This usually requires that the house be sold. So itís
important to discuss this with your children if you plan to leave the
house to them.
you are a senior citizen, a reverse mortgage can help you with any
money troubles you may have without requiring you to make another
monthly payment. It can help you pay for big-ticket items, consolidate
debt, make ends meet, or avoid foreclosure.
If you would like more
information about the reverse mortgage process and how it can help you
live out your retirement without the stress of financial burdens please
call me or one of my team members at 219-662-0166 or send an email
We will be happy to provide a complete
complimentary analysis of the amount of money you could expect to
receive from the best available products.
James Barath, CMPS