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If you are at least 62 years young or older, reverse mortgage may be for you. Reverse Mortgages allow homeowners to convert the equity in their home to cash while retaining ownership and not making any house payments as long as you live in the house.
Property taxes and homeowner insurance are still the responsibility of the homeowner, to pay, though.
Hope you enjoy this little video that we can all relate to…
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In order to qualify for a reverse mortgage you must have paid off or have equity in your home. There are limits as to how much money can be drawn out of the equity. You can be paid in a lump sum, in monthly advances or through a line of credit. Maybe even all three.
The money you receive and agree upon can be used for daily living expenses, medical care, repairs on the house and much more.
You make no payments to a lender anymore. There is only one stipulation, you must reside in the house.
Its important to make sure that HUD backs the Reverse Mortgage. You will be referred for counseling to determine if you are eligible. Once you have completed the counseling, you will be issued a certificate as proof that you have completed counseling. This certificate must be presented to a HUD Direct Reverse Mortgage Lender.
You will be asked how or if you would like to receive payments and the Lender will provide you with the total cost of the loan, as required by the Federal Truth in Lending Act. An appraisal of your home must be done in order to determine the value and the physical condition of the property. If there are any significant repairs to be made, you will be required to have a contractor complete the repairs after the Reverse Mortgage closes.
It does cost money to sign and record all of the paperwork, which is what we call closing. However, you can opt to have those costs rolled into the reverse mortgage loan.
What happens is that your remaining loan is paid off and a new lien is placed on your property.
Each month you will receive a statement that shows what the current interest rate is and how your equity has been reduced. It is important to have a good understanding of how Reverse Mortgage works and see if its a good idea for you.
If you are interested in having a quote fill out the form at the link or speak with a HUD Direct Reverse Mortgage Specialists, by calling 1“866“326“2583.
There are plenty of Active Adult communities that are gated if that is of interest to you. Just give me a call and I can make sure to send you homes and condos for sale in retirement communities both in Sacramento, Elk Grove, Folsom, Roseville, Lincoln and El Dorado Hills.
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Gena – Good to see you back online with excellent advice about reverse mortgages.
Thank you Paula. Reverse Mortgages will be the hotest item going in the next few years. I think it will also bring with it people who will try to take advantage of seniors.
It’s our job to make sure that they get good information in order to make informed decisions.
Thanks for popping by.