What are the requirements to qualify for a reverse mortgage?
To qualify for a reverse mortgage loan, you need to be over age 62 on the date of closing.
The older you are, the more funds will be available.
That's why it is so important to know exactly how much your house is worth!
You can find this information by typing "my estimated home value" into a calculator as Zillow or Trulia.
The three variables which determine eligibility for an equity line of credit include:
1) Home Owner’s Age
2) Who owns the property? It's either alone OR together with someone else who may also get involved through joint ownership arrangements
3) The Mortgage Balance equals out the remaining debts owed on said residence
If you're wondering if you qualify for a reverse mortgage, the best thing to do is to talk to someone on our team about it.
What can I do with my reverse mortgage money?
A reverse mortgage is a way to free up money so you can do what's right for your family. The reasons people get one include:
- Eliminate monthly mortgage payments
- Pay off debt such as credit cards and other loans
- Buy healthcare services or in-home care products that will help with day-to-day tasks around their house while you are retired
- There are also options like making home improvements or repairs on an aging property which may need maintenance down the line too!
- You could even use it to supplement retirement income if necessary - this would depend entirely upon your situation
What happens when I die?
When the last surviving homeowner passes or leaves their house permanently, they will no longer be in need of money for mortgage payments. Instead, it becomes due to whoever is left behind as heirs with several options on how best to go about settling this loan!
The first option would simply entail keeping and repaying what you can from any amount left over after taxes; paying off some portion now but saving most importantly so that at one point down the future line (or sooner!), or the bank taking possession of the house if needed.
Are their monthly payments?
The owner of this property has no required monthly mortgage payments.
Although, they may choose to make them if desired and are still responsible for paying property taxes as well as homeowners insurance on their new dwelling place - the HOA dues too!
Are other benefits affected from a reverse mortgage?
There is no effect on Social Security or Medicare benefits because of the Reverse Mortgage's basis in home equity, but other public programs might affect your payments. We can help you determine if they do!
What's the difference between HECM versus a Home Equity Loan?
When you take out a home equity loan or line of credit, your property taxes and homeowners insurance will be paid for by the bank as long as that balance is still owed. With an HECM though there's more flexibility - not only can people pay nothing monthly but they also don't have to make these regular payments at all!
The interest on this type mortgage doesn’t accrue until something happens: either death occurs when someone passes away living in their house OR moving outside causes them too lose title (which could happen if renters buy).
Will the bank own my home in a reverse mortgage?
No. A home equity loan, also known as an FHA mortgage or just HECM is a type of credit that can be used to purchase your next house. Unlike traditional mortgages where you give up the title once it's paid off in full (and sometimes even before), with an adjustable-rate HECM payment should be seamless because you retain control by making any size monthly payments--or none at all if desired; thus keeping current on property taxes/insurance.
How can get my reverse mortgage funds?
- Lump Sum – A lump sum of cash at closing. (Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages)
- Tenure – Equal monthly payments as long as the homeowner lives in the home
- Term – Equal monthly payments for a fixed period of time
- Line of Credit – Borrowers can draw any amount at any time until the line of credit is exhausted
- Any combination of those listed above
Is HECM a last resort?
The aging US population is a major driver of interest in reverse mortgages. As people live longer, they increasingly rely on their homes for safety and comfort during retirement years - but accessing that equity can be difficult if you don't have enough money saved up.
There's now an easy way around both problems: HECMs work just like regular mortgages except instead your credit score gets checked at settlement time; all applications require only half down payment (plus some other minor stuff), which means less risk involved while still giving homeowners full control over how long they want to stay put before selling off property. No need to worry about being stuck paying monthly mortgage bills.
