Reverse Mortgage Lets You Borrow For Retirement

Many people argue that parents should not save for the college education of their kids. After all, as they say, there are college loans but there are no retirement loans. But is it really true that there are no loans available for retired individuals? What about reverse mortgages?

The Basics of Reverse Mortgages

A reverse mortgage can be compared to a home equity line of credit or home equity loan. But there’s one glaring difference. You won’t be making payments to the lender. Instead, it’ll be the lender who’ll be paying you. A reverse mortgage loan will provide you with another source of income that will supplement your other retirement funds like your Social Security benefits.

A HomeEquity Conversion Mortgage (HECM) accounts for around 980% of all reverse mortgage loans, making it a popular option among the seniors. A lot of individuals don’t know that their home is a valuable asset. They tend to overlook it as an integral part of their retirement planning.

A reverse mortgage is a great way of tapping into your home equity to cover your retirement costs, without having to give up your house. A reverse mortgage loan could be an excellent option for those who are cash poor but house rich.

Can I Get A Reverse Mortgage?

You have to be at least 62 years old if you wish to apply for a reverse mortgage loan. You should also own a house. In case there’s an existing mortgage on your property, the outstanding balance should be small and can be settled using the proceeds that you get from the reverse mortgage. You should live in the house and use it as your primary home. You must not be delinquent on any federal debut like federal student loans or federal income taxes.

What are your financial obligations as a borrower?

As a reverse mortgage borrower, you are responsible for maintaining your house, paying the property taxes, HOA, utility bills, flood insurance, and homeowners insurance.

How much money can you get?

The amount that you get will be based on the age of the younger borrower, the interest rate, the HECM FHAlimit, and appraised home value. The proceeds of the loan increase with the borrower’s age and go down along with higher interest rates.

In case the age of the borrower is below 62 years old, the spouse will not qualify as a reverse mortgage borrower. But the loan proceeds would be based according to the younger age of the spouse, so the spouse would be able to remain in their home in case the borrower dies first.

Generally speaking, a reverse mortgage Charleston is set to a limit of 50% of home equity. The borrower might be able to borrow more than the capped 50% in case the loan proceeds are used to settle an existing mortgage.

Call Reverse Mortgage Specialist if you wish to learn more about reverse mortgages.

Reverse Mortgage Specialist
Charleston, SC 29401
843-353-6071
http://reversemortgagecharlestonsc.com/