This is a question that I frequently get from bankers, realtors, financial planners, CPAs, families of seniors, and of course seniors!
Here are the TOP 5 things you need to know about a reverse mortgage:
1. Age Matters! You must be 62 years or older to get a reverse mortgage. If you are shopping for a reverse mortgage and you are not yet 62, keep this in your retirement plans. This will be a great tool to help you retire more comfortably.
2. You never have to make a mortgage payment! This is very true! As long as you live in the home, you will not need to make any mortgage payments. The only thing you will need to pay is homeowners insurance and property taxes.
3. Your home does not need to be paid off to get a reverse mortgage. Roughly you need about 50% equity to get a reverse mortgage. The older you are, the less equity you need. General rule of thumb is 50%.
4. You are not guaranteed a line of credit or monthly income with a reverse mortgage. If you are coming into a reverse mortgage and we are paying off your existing mortgage where you owe 50% or more, you will probably not be eligible for a line of credit or monthly income. However, we will pay off your existing mortgage and you will save that in monthly income.
5. The bank does NOT own your home. You remain on title at all times. When you move out, the loan becomes due (just like a traditional mortgage, the loan needs to be satisfied).
A reverse mortgage helps many seniors live more comfortably. It is definitely NOT for everyone, but those people that it is for it can really help!
To find out if you qualify for a Reverse Mortgage, call me directly at 559-994-3692 or 800-779-1851.
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