No Mortgage Payments EVER!
Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. Reverse mortgages are insured by the U.S. Federal Government commonly known as Home Equity Conversion Mortgage (HECM).
If your age is 62 or over you can qualify for a Reverse Mortgage .The value of your home is one of the biggest factors in how much you can borrow with a reverse mortgage. The standard amount approved is usually up to 60% of your home’s current appraised value, the higher your home value is, the more money you can potentially get approved to access.
Common Reverse Mortgage Questions:
How do I receive the money approved?
Answer – There are three main options for receiving your money through a line of credit, monthly payout, or lump sum payout.
How much you can borrow? the amount approved?
Answer – depends on your age
Is there a monthly payment on a reverse mortgage?
Answer – Unlike a traditional mortgage, with a reverse mortgage loan, borrowers don’t make monthly mortgage payments.
Who is a Reverse Mortgage Ideal for?
Answer – Reverse mortgages are ideal for retirees who don’t have a lot of cash savings or investments but do have a lot of wealth built up in their homes. A reverse mortgage allows you to turn an otherwise illiquid asset into cash that you can use to cover expenses in retirement.
Who owns the house in a reverse mortgage?
Answer- When you take out a reverse mortgage loan, the title to your home remains with you.
What does my credit score have to be ?
Answer – There is no minimum Credit score required on Reverse Mortgages
Will a reverse mortgage affect my credit score?”
Answer – A reverse mortgage does not have any direct impact on your credit score. However, should you elect to use reverse mortgage funds to pay off existing debts, you may find a positive improvement in your credit profile