Top 5 Reasons People Get Reverse Mortgages
Once you’ve done your research on reverse mortgages and gained a more complete understanding of the product, the next step is to decide if a reverse mortgage is right for your situation. If you’re eligible (a homeowner 62 years of age or older with equity in your principal residence), this may be a quick decision or one that requires a bit more consideration. As with any decision, it’s always helpful to get the perspectives and experiences of others who have faced similar situations and asked themselves the same questions. So for those other folks who have decided to get a reverse mortgage, what were their reasons? We’ve asked some of our readers and site visitors and below are the top 5 reasons people get reverse mortgages:
Reverse Mortgages Basics
Reverse mortgages are loans against your home that require no repayment for as long as you live there. As opposed to regular mortgage loans, reverse mortgages have no income requirements and are based solely on the equity of your home or condo. There are no monthly payments to make as the mortgage is due only when the borrower is no longer living at the residence.
Considering a Reverse Mortgage?
Why you should consider a reverse mortgage?
Homeowners that are over 62 of age whose lifestyle might improve or to maintain their lifestyle by using the reverse mortgage as part of their retirement planning. It’s another financial tool available to senior homeowners over 62.
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Popular Questions?
How Does a Reverse Mortgage Work?
A Reverse Mortgage works like this. First you need to qualify for a reverse mortgage loan, which means you must own a home, be at least 62 years old and have enough equity built up in your
home. The reverse mortgage loan works by making payments to you the borrower based upon the percentage of equity that you have built up in the home. The loan is repaid when you the borrower
sells the home, moves out of the home or dies. The items/considerations that impact the proceeds (net cash) in which you may be eligible for include your age, the value of your home, interest
rate and whether your home conforms with the Federal Housing Administration’s (FHA) mortgage limit of $679,650.
Do I still own my home?