Many homeowners have found that a reverse mortgage is a great way for them to take advantage of the equity they have built up in their homes.
A reverse mortgage is different than a traditional mortgage. With a traditional mortgage you make monthly mortgage payments, but with a reverse mortgage the lender pays you money through monthly installments, a one-time lump sum payment, a line of credit or a combination of a line of credit and monthly installments. The money that you receive is dependent on the age of the youngest borrower or age of the youngest borrowering spouse, the value of your home and the current interest rate.
One of the great advantages of a reverse mortgage is that you are not required to pay the loan back until the home is no longer your primary residence or fail to comply with the terms of the loan. For more information on when a reverse mortgage comes due click here. Another great feature of a reverse mortgage is you can never owe more than the value of your home. No matter what.
If you’re aged 62 or older and own your home you might be eligible for a reverse mortgage. Contact us to find out more about reverse mortgages and ways to make it work for you, or apply now and start the process of tapping the equity in your home.
Check out these pages for more information about reverse mortgages.
These materials ae not from HUD or FHA and were not approved by HUD or a government agency (HUD Mortgagee Letter 2014-10),