What is a Reverse Mortgage?

If you’re a senior homeowner, you might benefit from a reverse mortgage. Reverse mortgages allow eligible homeowners to use their home’s equity in order to receive a loan. Unlike a traditional mortgage, you won’t be required to pay back this loan over the course of several years and months. In fact, you may not even have to pay back your loan at all (in the traditional sense). The following will go into more detail about this financial move and how it can benefit someone like you.

Following are the details about the financial move and its benefit.

  • Homeowners Must Meet Requirements
  • How Much Is A Reverse Mortgage Worth?
  • Is It The Right Move For You?

Qualify for a Reverse Mortgage

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Homeowners Must Meet Requirements

The main requirement that’ll determine your eligibility, besides you owning your home, will involve your age. You must be at least 62 years old in order to qualify for the Reverse Mortgage Solutions available. You must also have enough equity in your home and not have any outstanding liens. However, if you still have a mortgage left to pay, you can use the funds from your reverse mortgage to pay it off.

How Much Is A Reverse Mortgage Worth?

Every homeowner will be qualified to borrow a certain amount of money, and that amount will depend on a number of factors. For starters, the value of your home and the equity it contains will affect how much money you can receive. You’ll need to hire an appraiser to figure out the value of your home. You can then determine the equity of your home by subtracting the existing mortgage from the appraised value.

Homeowners will also have to take into account their age and the current interest rates figured by lenders. In short, the older you are and the more equity your home has the larger your loan can be. Your lender will use a Reverse Mortgage Calculator to determine your maximum loan amount.

Is It The Right Move For You?

Although it can be an excellent financial move, a reverse mortgage isn’t for everyone. A reverse mortgage is typically for those senior homeowners looking for a little extra money or something to supplement their income. Reverse mortgages are also best for those who plan on living in their homes for many years. These mortgages require the home in question to be your primary residence. If you choose to move or sell the home, you’ll have to pay back the money that you owe.

Speak with your lender for more Reverse Mortgage Information. Again, you must be a homeowner of at least 62 years of age. The maximum amount you’ll be able to borrow will depend on your age, current interest rates, and your home’s value and equity. Lastly, make sure that a reverse mortgage is the right move for you before agreeing to the terms.

Review the information laid out on Reverse Mortgage Qualifier

And then fill out the form above to see if you qualify