Reverse Mortgage Basics
Reverse Mortgages have been around for many years, and are becoming more and more popular. The word 'reverse' is used because they work the exact opposite as a regular mortgage works - instead of borrowing money for a house and paying it back over multiple years, the Reverse Mortgage actually pays YOU using the equity in your house.
How do I qualify for a Reverse Mortgage?
- You must be at least 62 years old
- You must have a substantial amount of equity in your home, or, own it free & clear
- Your home must be your primary residence
What about income or credit score qualifications?
- You do not need to prove income (unless you own other real estate)
- You do not need to have any assets (outside of your home)
- You do not need to have any minimum credit score
How can I use the money from a Reverse Mortgage?
- As extra income each month
- As a 'bridge' if you have income coming in the future, and need steady income now
- As a lump sum payment if you have medical expenses or other bills to pay
How does a Reverse Mortgage get paid off?
Because a Reverse Mortgage is a loan, it does have to be paid back. When you do not occupy the house any longer, or if you die, the home is sold to repay the bank the balance owed on the Reverse Mortgage. And there is good news: any money that is left after the mortgage is paid goes to you, or your heirs! And there is even better news: Reverse Mortgage loans are what are knowns as 'nonrecourse loans.' That means that whatever the proceeds are from the sale of the home, whether they cover the balance owing on the Reverse Mortgage loan or not, the loan is considered paid in full. The bank cannot come after you (or your heirs) for more money!
How do I get a Reverse Mortgage?
Reverse Mortgages are something I specialize in. If a Reverse Mortgage is the answer you have been looking for, give me a call and I will answer any questions you have. The process is simple and straight forward, and easy to get started!