Tips from top, Orange County lender can guide you in the right direction
Is a Reverse Mortgage Right for You and Your Situation?
You’ve probably seen the commercials on television and the Internet stating how a reverse mortgage can save your home and provide money for you during your retirements. Well, before you move forward, it’s essential to find out if a reverse mortgage is right for your particular situation.
With this in mind, here is some helpful information about reverse mortgages:
What is a reverse mortgage, anyway?
Per the National Reverse Mortgage Lenders Association, “a reverse mortgage is a loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their homes into cash.”
Instead of making payments to a lender, you make payments to the borrower, and there are no monthly interest or principal payments. You maintain ownership of your home, but you need to live it and stay current with all of your property taxes, insurance and appropriate HOA dues. This way, you don’t need to pay back the loan until you sell or vacate the home.
Is a reverse mortgage right for you?
When getting a reverse mortgage, there can be a lot of fine print, rules and regulations to follow for your particular situation. That’s why it’s important to work with an experienced expert who can guide you through the process.
Your reverse mortgage loan originator will look at your unique needs, and give you the facts and information you need to know and what to expect. This way, you’ll be prepared to move forward or pass on a reverse mortgage.
What should you be aware of with a reverse mortgage?
If you decide to get a reverse mortgage, you need to work with your loan originator and ask questions. For example, how will you receive your payments? If you get an adjustable interest rate, you may have equal monthly payments over a specific term, unscheduled installments, a combination of all of these, or a modified payment plan depending on your situation. With a fixed interest rate on your reverse mortgage, you receive a single disbursement lump sum at mortgage closing.
Reverse Mortgages Provide Many Benefits!
Touting the safe, financial security of their FHA reverse mortgage program, The U.S. Department of Housing and Urban Development indicates that, “many seniors use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more.”
However, this may or may not be the right choice for you. Find an experienced and licensed reverse mortgage originator to help answer your questions. Then, you can move towards your own, financial security goals with more confidence.
Do you want to discover if a reverse mortgage is right for you?
As an experienced, local Orange County mortgage specialist, you can contact me directly here, and I’ll be happy to help!