What You Should Know and Do Before Getting a Reverse Mortgage

Reverse mortgages can be a great option for those over the age of 62 and looking for extra cash flow, but while it is a great financial product, it is not for everyone. For those who are considering a reverse mortgage, they should make sure that they understand what they are getting into.

If you have substantial equity in your home, and do not plan on leaving your home any time soon, a reverse mortgage might work for you. Alternatively, for those who did not qualify for a traditional mortgage, may find that the without a salary requirement or credit check makes it easier to qualify for a reverse mortgage.

HOW A REVERSE MORTGAGE WORKS

A reverse mortgage is a special FHA-approved loan that is meant to help those who are over the age of 62 age in place. Instead of borrowing money from the lender, you are borrowing against the equity that has built up in your home and they get to choose how they would like to receive the loan – in a lump sum, monthly payments or a credit line. Borrowers also do not need to worry about making monthly payments to the lender, as long as they continue to live in the home as their primary residence.

Borrowers do not lose ownership of their home in a reverse mortgage and they continue to retain title to their home. Borrowers are also able to choose how they would like to spend the money, whether it is to help pay off the mortgage or to buy a new car.

With a reverse mortgage, there is no maturity date, however, a loan becomes due when a maturity date occurs. A maturity date can occur when the borrower is no longer physically living on the property as a primary resident or if they are no longer paying the property taxes and home insurance.

WHAT YOU SHOULD DO BEFORE YOU APPLY

Research is key: Fully understanding the reverse mortgage program is key for borrowers to protecting themselves and to make the most out of their loan. Arm yourself with knowledge, so that you are prepared and to ensure that you are making the right decision for you. Resources are available online and through

Make the most of your reverse mortgage counseling session: The counseling session is available for borrowers to speak with a third-party individual regarding the reverse mortgage loans and to make sure that a reverse mortgage is the right choice for you. Take advantage of your counseling session and don’t be shy about asking questions – they are there to answer all of your reverse mortgage questions for you.

 

If you are interested in learning more about how a reverse mortgage can help you, call 1-888-808-8486 to speak with a Senior Advisor today.

 

 

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