Get Cash For Your Home With Reverse Mortgages

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Mortgage Advisor™ has been aligning customers with their best mortgage lender since 2005.

What is a Reverse Mortgage?

A reverse mortgage is a loan that helps homeowners who are 62 years of age or older to convert the equity mortgage in their home into cash and eliminate future mortgage payments. If you qualify, a reverse mortgage can be a great choice as it has the ability to give you supplemental income for the remainder of your life. Because the amount that you can qualify to receive in a reverse mortgage is different for everyone, it is best identified by speaking to a Mortgage Advisor.

How Do Reverse Mortgages Work?

Wouldn’t it be nice to be able to NOT make monthly mortgage payments and have the bank pay you instead? It is possible with reverse mortgages.

The money you receive through a reverse mortgage comes as payments from the bank or your lender. The amount you can receive is based on:

  • Your age
  • The present value of your home
  • Current interest rates
  • The distribution type you choose (e.g. how you decide to receive payments)
  • Other financial obligations

With a reverse mortgage loan, you will be able to stay in your home for the rest of your life without making any more mortgage payments. The remaining balance of your loan will eventually need to be paid, which can happen when the home is sold or when you die. If it is the latter, the remaining amount of home equity mortgage left in your house is given to your surviving spouse or any designated member(s) of your estate.

There are several different ways in which you can receive home equity payments from your reverse mortgage:

  • A lump sum
  • A partial sum
  • Monthly payments
  • A line of credit

How Do I Qualify for a Reverse Mortgage?

Not everyone qualifies reverse mortgages. In order to receive one, you must meet this criterion:

  • One of the borrowers on the loan needs to be age 62 or older
  • You must completely own the home or have a large amount of home equity (usually 40% or more)
  • The home you live in must be your primary residence and be well-maintained
  • Property insurance and taxes must all be paid before applying
  • You are required to attend reverse mortgage counseling with HUD

Find out how much you could qualify for a Reverse Mortgage. Talk with a Mortgage Advisor by calling (888) 851-1301 or by filling out our quick 1-minute form.

Should I Apply for a Reverse Mortgage Loan?

Research shows that 41 percent of people between the ages of 55 and 64 do not have any retirement savings at all. A reverse mortgage can help provide seniors in this situation or with limited funds the ability to have the money they need for the rest of their lives. A reverse mortgage can also help those who have had a hard time keeping up on payments to stay in their home.

The Benefits of Reverse Mortgages

Along with these benefits, there are a few other advantages to getting a reverse mortgage:

  • It’s simple to apply as long as you meet the requirements
  • You can receive supplemental income for the rest of your life
  • The income you receive is tax-free

There are also some things you need to keep in mind when applying for a reverse mortgage loan, such as:

  • If you die and your spouse is not listed as a borrower and has not yet turned age 62, they will still be able to stay in the home for the rest of their life if they choose to do so.
  • You are still required to pay taxes and insurance on your reverse mortgage loan, just as with other loans
  • There will be HECMs fees involved, however, you can choose to finance them into the loan so you won’t have to pay them outright

As with any loan, it is best to talk with reverse mortgage lenders who can find the right plan for you and your situation. Once you’ve found these lenders, you’ll need to discuss any specific details about your situation with them so they can determine the right solution for you.