The reverse mortgage revolution is here!
This new type of reverse mortgage allows homeowners over the age of 62 to borrow against the equity in their home, with the hope of refinancing and growing their incomes over time. With the housing market still recovering from the Great Recession, now is the perfect time to take advantage of this new type of reverse mortgage.
What is a reverse mortgage?
A reverse mortgage is a type of loan that homeowners can take out from the Federal Housing Administration (FHA) in order to pay off their debt and have a steady stream of money coming in for as long as they live in their home. In a traditional mortgage, a homeowner borrows money from a lender to purchase a home and then lends the home back to the lender as partial payment on the loan. The reverse mortgage works the opposite way: the homeowner borrows money from the lender to pay off their current mortgage, and then the lender agrees to continue to make monthly payments on the loan in lieu of the house being sold. This allows the homeowner to live in their home while paying off their debt, and the lender can even make money if the home is sold down the road.
There are a few factors to consider when thinking about taking out a reverse mortgage. The first is how much money you think you will need to pay off your debt. The second is whether you think you will continue to live in your home for the long term. If you plan on moving in the near future, you may want to consider a shorter-term reverse mortgage that allows you to pay off your loan more quickly.
How does a reverse mortgage work?
A reverse mortgage is a loan product that a homeowner can use to help pay down debt or build equity in their home. The homeowner borrows money against their home equity, which is then paid back to the homeowner over the course of a fixed number of years. The loan payments are capped at a percentage of the homeowner’s Adjusted Gross Income, and the homeowner can keep the home they live in while making the payments.
There are a few things to keep in mind before taking out a reverse mortgage. First, you’ll have to have a stable financial situation and enough equity in your home to qualify. Second, you’ll have to be able to make your loan payments on time, and you should consult with a lender to make sure you understand your options and what’s required of you.
A reverse mortgage can be a great way to help you pay down debt or build equity in your home. If you’re interested in learning more about the option, speak to a lender or call 1-800-Reverse-Mortgage.
What are the benefits of a reverse mortgage?
Reverse mortgages are a great way to help elderly or disabled individuals stay in their homes while still having some financial security. With a reverse mortgage, the homeowner borrows money against their home’s equity, with the intention of paying off the loan over a period of time. Not only are the benefits of a reverse mortgage awesome in and of themselves, but they can also offer significant tax breaks as well.
Here are some of the main benefits of a reverse mortgage:
- It can provide elderly or disabled homeowners with a financial security boost.
- As long as the homeowner still owns the home, the reverse mortgage can offer significant tax breaks.
- There’s no need to sell or give away the home in order to take out a reverse mortgage.
- Because it’s a loan, the reverse mortgage can be extremely flexible in terms of repayment terms.
- Reverse mortgages can help homeowners age in place and avoid having to sell their homes in order to downsize.
- A reverse mortgage can also be a great option for first-time homebuyers.
So, whether you’re an elderly homeowner looking for a way to stay in your
Who is eligible for a reverse mortgage?
People who are eligible for a reverse mortgage must meet several criteria, including being at least 55 years old, having a qualifying loan, being current on all payments, and owning the home being refinanced. To be eligible, the home must be your primary residence. For those who are not owner-occupants, the home must be the primary residence of the borrower’s spouse, child, stepchild, or parent. Reverse mortgages are not available to members of the military or to people who are in default on their loans.
Reverse mortgages are a type of home equity loan that allows homeowners to borrow money against the value of their homes. The loan is not traditional—the borrower does not have to pay back the money until after they die, sell the home, or can no longer make the payments. The interest on a reverse mortgage is typically lower than the interest on a traditional loan, and the home cannot be sold until the debt is paid off.
With home prices steadily on the rise, now is the time to get a reverse mortgage, home values are high and interest low. With a reverse mortgage, you can tap into your home’s equity to cover essential living expenses while maintaining your home as your primary residence. Get started today and see a reverse mortgage specialist to get the best rates available.