If you’re over 62 and want to use your home’s equity to supplement your income, a reverse mortgage could be a great option. The bank will give you payments every month in exchange for a part of your home’s value with no payments due on your part until your house is sold or otherwise vacated.
The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the federal government. Following recent legislation, there are new increased borrowing limits are available along with the ability to purchase a new home with this program. Other options are available as well, so if you’re not sure which is best, contact us today.
Borrowers choose reverse mortgages for a number of reasons, including:
The disbursement options on a reverse mortgage loan are flexible. You can access money in a lump sum, establishing a line of credit to use as needed, or a combination of the two.
When and if the home is left permanently, the balance on your reverse mortgage becomes due. Selling the home itself can pay for this—any remaining equity belongs to you or your heirs.
If you’re interested in learning more about your reverse mortgage options, contact us today and one of our team members will happily answer any of your questions.
If you’re thinking of living in the Kalamazoo Michigan area, consult this comprehensive guide outlining the top-ranked neighborhoods, as well as location, school districts, median home prices, local amenities, recreation, and more.
Read MoreGovernment-backed mortgages provide many financial benefits for first-time and repeat homebuyers, such as lower down payments, lenient credit score requirements, improvement project grants, and more.
Read MoreIf you’re thinking of living in the Greenville, South Carolina area, important factors to consider include location, school districts, median home prices, transportation access, local amenities, entertainment, and more.
Read MoreWhen considering purchasing a home on Long Island, it’s best to have updated documentation including financial statements and tax returns, mortgage pre-approval and commitment letters, neighborhood and realtor preferences, and more.
Read More