• A Reverse Mortgage allows owners to tap the equity in their home.
• Borrowers must be at least 62 years old and occupy the home as their principal residence.
• There are no required monthly mortgage payments.
• Any outstanding mortgage must be paid off with the new Reverse Mortgage.
• There are no “upfront” fees to be paid other than a Counseling fee and an Appraisal fee.
• There is no credit qualifying, other than a search to be sure there are no legal items outstanding; if so, the balances may be paid with the new Reverse Mortgage.
• A Reverse Mortgage even can be used to Purchase a home.
Property owners who want to consider a Reverse Mortgage should carefully choose their lender; talking with a financial advisor is also highly recommended. A Reverse Mortgage is just the opposite of a standard mortgage – no payments are made; quite the reverse, payments are received. The most popular Reverse Mortgage is the one endorsed by FHA. Borrowers can pull out cash, set up an equity line or monthly payments, or a combination of all three.
Social Security income and Medicare benefits are not affected by a Reverse Mortgage.
• No repayment of the debt is made until the home is sold; the owner permanently moves out or passes away.
• A borrower will never owe more than the current market value of the home at the time the loan comes due, even if the loan balance is higher.
What can the income or proceeds of a Reverse Mortgage be used for – just about anything the borrower wants. You can tell I am a great advocate of Reverse Mortgages. I have a deep history with them and was very excited when State legislation first allowed them in the mid-1980s. I have seen these mortgages positively change many people’s lives, often at their most critical time of need.
Karen Lee Davis, DOC #245892 of The Mortgage House, Inc. She has over 37 years’ experience in the mortgage banking industry. Your e-mailed questions are welcomed through her website at: www.themortgagehouse.com or call her at 1-800-305-9731. .