Do Reverse Mortgages Make Sense?
Maybe we should explain reverse mortgage layman’s terms! If you are over the age of 62 and own your own home, a reverse mortgage just may be the perfect thing for you. Looking for some money for an unexpected expense, pay down another mortgage, go on a dream trip, home renovation or anything else? Well, why not a reverse mortgage?
Basically, a reverse mortgage allows you to take money out of your home equity without monthly mortgage payments.
Since the FHA rules can change from time to time, make sure to reach out to other sites and mortgage brokers to get the most up to date information. We recommend:
Florida reverse mortgages – ASmartSenior.com
New Mexico reverse mortgages – andersonreversemortgage.com
Texas reverse mortgages – reversemortgageoftexas.com
Eligibility For Reverse Mortgage
There are a few factors that you have to meet and here are a few of the main ones:
- You have to be 62 years of age or older.
- You must reside in the home you want to take the loan out on.
- Any fees must be paid by the homeowner.
- The home must be in good condition.
- Any mortgages that already exist must be paid in full.
There are a lot of variables as well that depend on the situation. You will probably want to ask:
- How much will it cost?
- How much will it pay or how much will I get?
- How to calculate reverse mortgage?
- Is it taxable?
- Will it affect your credit score?
Benefits Of A Reverse Mortgage
The biggest advantage is that the loan amount is not paid back as long as the home owner continues to live in the home.
Cons and Disadvantages Of Reverse Mortgage
Of course, with pros, there are always some cons as well. Sometimes there are higher fees and interest. Also, yo uare not allowed to move and if you do, you have to pay off the loan.
Can I Get A Reverse Mortgage With No Equity?
Unfortunately not. You need equity built up in order to take advantage of this.
How Does A Reverse Mortgage Work after Death?
Basically, if the borrow dies while the reverse mortgage is in effect, the home is sold to pay off the debt or it falls on the heirs to pay it off to be able to keep the house.
Is A Reverse Mortgage A Good Deal Or A Ripoff?
This cannot really be answered because it all depends on your own situation. For some, it may be the perfect solution and to others, it may not be. Visiting a good broker to find out all your options is the best bet.