What is a reverse mortgage? It is a tax free loan from your home equity that doesn't have to be repaid as long as one of the customers on the loan still lives in the home.
Who can qualify? Generally, homeowners over 62 with home equity.
What if I already have a regular mortgage balance? If you qualify for a large enough reverse mortgage you can pay off the regular mortgage and eliminate the mortgage payment.
How much cash can I get from a reverse mortgage? It depends on the home value, your age, which plan you select and the current interest rate. Generally you can get 40% to 70% of the homes appraised value.
Which is the best plan available? Your prospective lender should show you, and explain the details about each plan available. The finance rate and cash benefit should be shown for each. Currently most customers select a Home Equity Conversion Mortgage (HECM) because it often gives the most cash and the lowest rate.
What purpose can the money be used for? It's your money to use for whatever you wish.
What are the choices for how to receive the cash? You can choose to get a line of credit, monthly income paid to you, a lump sum of money, or a combination of these.
Are reverse mortgages regulated by the government? Yes, HUD strictly regulates these loans. There are safeguards built in including restrictions on rates and fees. There is also a requirement for the homeowner to receive free counseling from an approved, independent counselor, prior to a reverse mortgage.
Is this a good program for all senior homeowners? No. For example it may not be good for a homeowner that expects to move out of the home in the near term. The free counseling service will cover the points to consider before making a decision.
Who can qualify? Generally, homeowners over 62 with home equity.
What if I already have a regular mortgage balance? If you qualify for a large enough reverse mortgage you can pay off the regular mortgage and eliminate the mortgage payment.
How much cash can I get from a reverse mortgage? It depends on the home value, your age, which plan you select and the current interest rate. Generally you can get 40% to 70% of the homes appraised value.
Which is the best plan available? Your prospective lender should show you, and explain the details about each plan available. The finance rate and cash benefit should be shown for each. Currently most customers select a Home Equity Conversion Mortgage (HECM) because it often gives the most cash and the lowest rate.
What purpose can the money be used for? It's your money to use for whatever you wish.
What are the choices for how to receive the cash? You can choose to get a line of credit, monthly income paid to you, a lump sum of money, or a combination of these.
Are reverse mortgages regulated by the government? Yes, HUD strictly regulates these loans. There are safeguards built in including restrictions on rates and fees. There is also a requirement for the homeowner to receive free counseling from an approved, independent counselor, prior to a reverse mortgage.
Is this a good program for all senior homeowners? No. For example it may not be good for a homeowner that expects to move out of the home in the near term. The free counseling service will cover the points to consider before making a decision.