Reverse Mortgage in Boulder, CO
A reverse mortgage is a special type of loan that enables individuals aged 62 and older to convert some of their home's equity ino tax-free cash. Unlike the traditional equity loans, you'll receive payments instead of making them.
Interest Rate Options. These are available in either a fixed-rate or variable rate. Any adjustment in a variable rate mortgage has no effect on the amount or number of loan advances you can receive. However, a variable rate adjustment can cause the loan to grow at a faster or slower rate.
Cash Options. There are three options available for a reverse mortgage in Boulder, CO. Lump sum advances allow you to take cash immediately. Lines of credit allow cash to be disbursed upon request. Finally, tenure plans allow fixed, monthly cash advances.
Costs Involved. Like other loans, closing costs are included and can be financed into the loan. These costs can include origination fee, title insurance, appraisal, mortgage insurance premium and attorney fees. The typical out-of-pocket expense required at closing is about $350. You'll be expected to continue maintaining the property, including paying real estate taxes and hazard insurance premiums.
Assuming you continue to live in the house, taxes and insurance are kept up-to-date, and the property is maintained to FHA standards, there is no need to repay the loan. Check with a reverse mortgage specialist to find out more about how this program is designed.
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