Reverse Mortgage Lenders-Top 5 Facts you Should Know
A reverse mortgage can be the answer to a prayer for many older homeowners, especially those on a fixed income.
What is a Reverse Mortgage?
A reverse mortgage allows the homeowner to turn part of the equity in their home into cash. Depending on the type of reverse mortgage you choose, the funds can be paid in a single lump sum, but most plans allow the funds to be paid to the homeowner in installments each month.
How is a Reverse Mortgage Repaid?
Most reverse mortgage lenders do not require the loan to be repaid until the borrower is no longer living in the home as their principal residence. This means the loan will come up for repayment when the homeowner sells their home, moves to another residence or is no longer living. While plans do vary, many reverse mortgage lenders will provide the homeowner’s beneficiaries up to six months to repay the loan in the event of the homeowner’s death.
Who Qualifies for a Reverse Mortgage?
- Homeowners age 62 and older
- Homeowners of all income brackets
You should know the amount of money you can borrow will typically depend on several factors including:
- Current interest rate
- Appraised value of your home
When looking for a reverse mortgage lender, be sure to consider the payment options available to you, interest rate and the amount of money you can borrow. MortgageLenders.org can help you find a variety of reverse mortgage lenders to choose from.