REVERSE MORTGAGE
What Is A Reverse Mortgage?
Before determining if a reverse mortgage is right for you, you should know what one is. Reverse mortgages are a way for homeowners who are 62 years of age or older, to access the equity in the home they own. This equity comes back to you in the form of a loan that you don’t have to pay back. With a reverse mortgage, you are not selling your house back to the bank; you are just taking cash in the form of a loan against your home.
You may be thinking this sounds too good to be true, but with Everse Mortgages a reverse mortgage really is that straightforward. With the loan you obtain, you can access cash based on the value of the home you live in, without having to make any monthly payments. This cash can help you plan for and manage your financial future.
Home Equity Conversion Mortgage (HECM)
One specific type of reverse mortgage is a Home Equity Conversion Mortgage or HECM. This loan is adjustable either monthly or annually depending on your preferences. Unlike other types of reverse mortgages, though, you must acquire mandatory counseling by a HUD-approved counselor. Once approved, you can take your proceeds as one lump sum, as a line of credit, or as a fixed monthly income. There is no limitation to your use of your HECM, and all proceeds are considered equity, so they are not taxed.
How To Get A Reverse Mortgage
Everse Mortgages is here to help you. We will make sure you understand your loan fully, and guide you through the process from start to finish. We will take our time to determine the current market value of your home, and then underwrite your loan application. When the loan is reviewed, we will help you close on the documents and determine how you want to proceed in receiving your funds.
Things You Should Know
Like anything else, a reverse mortgage must be used properly. In order to qualify for a reverse mortgage, you must have equity in your home and all proceeds must first be used to pay off existing loans.
A reverse mortgage is not affiliated with any state or federal agency but is insured by the government. It’s designed to help people who are older have more stability in their financial future; there are no monthly payments and you can use the cash that you receive, for anything. You don’t lose your title to your home when you obtain your loan, nor pay back the loan until you decide to move or leave the property. If one should pass away while having a reverse mortgage, heirs will inherit the property in name with a lien.
If you are interested in seeing if a reverse mortgage may be right for you, contact us today.