Reverse Mortgage
If you are 62 or older, have equity in your home and need to access that money without paying it back in a monthly payment, a reverse mortgage may be an option for you.
In a reverse mortgage, a homeowner aged 62 or older receives money for the equity they have in their home and do not have to pay it back in monthly payments. They may receive the loan money as monthly payments, as a line of credit to withdraw from, or a combination of the two.
As long as the homeowner keeps the property in good condition and pays property taxes and insurance, the reverse mortgage does not need to be repaid until the homeowner dies or moves out of the home (such as permanently into a nursing facility). At that time, the sale of the property pays off the loan and interest, with money in excess of the loan amount going into the homeowner’s estate. The homeowner’s heirs also have the option to pay off the loan themselves and retain the property.
Even though the homeowner does not repay a reverse mortgage in monthly payments, it is still important to seek the best mortgage rates available to maximize the available equity.
Consumers who owe little or no money on their home and need to supplement their monthly social security or make home repairs, but cannot make a monthly loan payment, can benefit from a reverse mortgage. Because the equity in the property secures the loan and no monthly loan payments are required, there are no credit or income requirements to qualify.
On Best Mortgage Rates, you can find the best mortgage rates for a reverse mortgage.
If you are 62 years old or older and have equity in your home, a reverse mortgage may be right for you. To find out if you qualify and lock in your rate, contact a lender today.
