As a senior homeowner, you may have considered taking out a loan against the value of your property. SteveKnowsLoans can help you access the equity in your home without requiring a new monthly payment, whether you need to supplement your existing income, pay off some debt, or assist a family member with further education or a home purchase. In fact, we can arrange for the lender to start sending you regular installments right now.
Using the value of your home as collateral
With a reverse mortgage, you can access your home’s equity to secure a loan. Reverse mortgages, in contrast to more conventional mortgages and home equity loans, typically do not necessitate repayment during the borrower’s lifetime. You are not required to make regular payments on the money you receive, whether it is a lump sum or installments.
The mortgage won’t have to be paid off until you either pass away or no longer need the property. Repayment is put off until the last surviving co-owner sells, gives up possession, or passes away if the property is held under joint tenancy.
If you pass away while still owing money on your reverse mortgage, your estate has six months to settle the debt. After the reverse mortgage is paid off, any leftover home equity is given to the borrower’s estate. Your estate will not be responsible for any remaining reverse mortgage balance after the sale of the home.
Reverse mortgage qualification
The following are some of the most fundamental requirements to qualify for a reverse mortgage:
- The minimum age for a homeowner is 62.
- The home must serve as the primary residence of the buyer.
- There must be no outstanding mortgages or liens on the property at the time of closing.
- After the reverse mortgage closes, you will be responsible for all costs associated with keeping the property in good repair, including taxes and insurance.
The Various Ways You Can Access Your Reverse Mortgage Funds
You can get your money in a flat sum, on a regular schedule, or as a line of credit. You can expect to pay back your loan based on four criteria:
- How old are you?
- Interest rates as of right now
- What an expert valuation puts on your home
- Choose your own mode of payment.
If you’re interested in learning more about reverse mortgages, contact a professional mortgage loan officer at SteveKnowsLoans now.
Call Steven Jackson at 813-616-9411 now!
