How to Get a Reverse Mortgage
What is a Reverse Mortgage?
A reverse mortgage, otherwise known as a home equity conversion mortgage (HECM), is a loan that’s available to homeowners that are 62 years old or above. This loan helps homeowners turn part of the equity from their home into cash that can be used as a supplemental retirement income.
How Does a Reverse Mortgage Work?
Unlike a typical mortgage, this loan doesn’t require any monthly mortgage payments. Instead, the bank will pay you money through one single payment, a monthly payment, or a line of credit. The amount they pay you will depend on the current market value of your house.
Then the loan will be paid back when you no longer need the home. All remaining equity on the home will go to you if you sell the house or to your surviving spouse or estate heirs if you pass away.
A reverse mortgage will allow you to continue living in the home that you’ve paid off over time, as long as you use it as your primary residence. Also it’s important to note that you’ll still be accountable for the tax and property insurance payments on the home.
How Do I Qualify for a Reverse Mortgage?
If you answer yes to all of the following questions, then you could qualify for a reverse mortgage:
- Are you 62 years old or above?
- Do you use the home as your primary residence?
- Do you own the home or have a small amount left to pay on the mortgage?
- Is the property a single family home, multi family home, townhome, condominium, or manufactured/mobile home?
- Is the home in good condition?
To get a reverse mortgage, you will have to meet with a HUD approved housing counselor to decipher whether or not it’s right for you. You will also have to pass a financial assessment, which will ensure that you can pay for the following items:
- Taxes on the property
- Homeowner’s insurance
- Cost of home maintenance
- HOA fees, if necessary
Trusted House Finance Can Help You Get Started Today
If you’re interested in getting a reverse mortgage, contact Trusted House Finance. We can help you find out how much you qualify for and get you started on the next steps.
Plus we compare the best reverse mortgage offers to find you the right solution and the best loan.
Contact Us today to speak with a trusted professional!
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