Many homeowners have found that a reverse mortgage loan is the best way for them to reclaim the equity they have built up in their homes and improve their cash flow.
With a traditional mortgage loan you make monthly mortgage payments, but with a reverse mortgage loan the lender pays you money through monthly installments, a one-time lump sum payment, a line of credit or a combination of a line of credit and monthly installments. The money that you receive is dependent on your age, the value of your home and the current interest rate.
One of the great advantages of a reverse mortgage loan is that you are not required to pay the loan back until the home is no longer your primary residence or you fail to maintain the home or to pay property taxes and/or homeowner's insurance or do not otherwise comply with the terms of the loan.
Contact us to find out more about reverse mortgage loans and ways to make it work for you or apply now and start the process of tapping the equity in your home.
To apply now, just send us these four items of information we need to create your loan proposal:
In 24-36 hours, we will send you a complete proposal showing your benefits.
You’ve worked hard to pay the mortgage on your home. With a reverse mortgage loan you choose to receive a portion of the equity that you earned. A federally insured HECM reverse mortgage loan can help you unlock that equity by increasing your monthly cash flow. Rest easy knowing you’re protected because with a reverse mortgage loan you can:
Apply today and learn the value for you having a reverse mortgage loan.
A reverse mortgage loan is a loan designed to allow seniors to draw upon the equity in their homes. Seniors can select to receive the loan proceeds either by a lump sum payment, by monthly installments, as a line of credit or as a combination of a line of credit and monthly installments thus providing cash flow even after retirement. The reason this type of loan is called a “reverse mortgage loan” is because the loan proceeds are paid to the homeowner.
Eventually the money paid to the homeowner is repaid with interest, however the loan generally does not become due until the borrower passes away, sells the home, no longer maintains the home as the primary residence or fails to pay property taxes, fails to pay homeowners insurance or otherwise fails to comply with the loan terms.
Many people have found that by taking a reverse mortgage loan they benefit from access to the equity they have built in their home.
Typically, those who benefit most from a reverse mortgage loan are those who plan to stay in their homes over an extended period and have built a decent amount of equity in their homes.
If you have a good amount of equity in your home and you plan on staying there for an extended period of time, then a reverse mortgage loan might be right for you.
Call, email or text us these four items of information we need to create your loan proposal:
In 24-36 hours, we will send you a complete proposal showing your benefits.
The very nature of a reverse mortgage loan can be confusing. With a reverse mortgage loan, lenders pay you either in monthly installments, with one lump sum, a line of credit or as a combination of a line of credit and monthly installments. The following lists provide information regarding repayment of a reverse mortgage loan.
A reverse mortgage loan comes due when under the following conditions:
When the reverse mortgage loan becomes due there are two options for paying it off.
Like all loans a reverse mortgage loan does carry conditions in order to remain valid. Reasons a borrower may find themselves in default include:
Just like a traditional mortgage, a reverse mortgage does have fees associated with securing it.
Origination Fee – The origination fee covers the lenders operating expenses associated with making the reverse mortgage loan.
A lender can only charge a HECM origination fee up to $2,500 if your home is valued at less than $125,000. If your home is valued at more than $125,000 lenders can charge 2% of the first $200,000 of your home's value plus 1% of the amount over $200,000 up to a cap of $6,000.
Appraisal Fees – Before a reverse mortgage loan can be approved an appraiser will come to your home and inspect it. The appraiser will be looking to determine the worth of your home based mostly on condition, location and the current market situation.
If the appraiser uncovers a significant problem, you will be required to hire a contractor to fix the problem before obtaining your reverse mortgage loan. That same appraiser will come out again and re-inspect the property.
Mortgage Insurance Premium – The mortgage insurance premium is a fee associated with the HECM reverse mortgage loan. The initial MIP will be .5 percent or 2.5 percent, depending on the amount you request to be disbursed. Additionally, you will be charged an annual Mortgage Insurance Premium (MIP) that equals 1.25% of the loan balance.
The mortgage insurance premium guarantees that you will continue to receive your monthly payments and that you will never owe more than what your home is worth once the loan reaches maturity unless you choose to pay off the loan while you or a non-borrowing spouse are still living in the home.
Closing Costs – Closing costs that are generally included in a reverse mortgage loan are: