All About Reverse Mortgages
One service that many people don't realize a mortgage broker can help them with is obtaining a reverse mortgage. A reverse mortgage is a loan that people can take from their home equity without selling their home.
Reverse mortgages, sometimes known as an equity release, are an option for elders 55+ in retirement who have put a lot of money into their homes but lack funds now.
Seniors can access between 10-50% of their home's equity as monthly payments or as a lump sum. This rate is dependent on age and the value of the home. So, instead of having to make monthly payments, a lender will instead pay the homeowner.
Like with all loans, this loan will need to be fully repaid, but only when it is due. Typically, when the borrower moves out from home, sells it, or the borrower passes away, it will be repaid from the estate.
However, you can repay the loan's principal and interest at any time, but may be charged a fee to pay off the reverse mortgage early.
Eligibility for Reverse Mortgages
To be eligible for a reverse mortgage, a person or couple must own the home, use it as their primary residence, and be over 55 years old. If you have a current mortgage on your home, it needs to be paid off, which can be done with the reverse mortgage.
Getting a reverse mortgage can be complicated; this is where Highline Mortgage can help. Our reverse mortgage service can help seniors get the equity they need to live their life to the fullest.
Using a mortgage broker is beneficial as there are more costs associated with getting a reverse mortgage, Highline Mortgage can help you break down the costs.
Reverse mortgages tend to have a higher interest rate than a traditional mortgage, so creating a payment plan is important. There are also fees to appraise your home and to set up the mortgage. Fees and language vary among lenders, so letting Highline Mortgage help you with the process will remove any confusion and stress. We also work with multiple lenders to help you find the best rates to suit your needs.
If you're not sure whether a reverse mortgage is right for you, here are some things you can do with your reverse mortgage. You can first pay off any debts like your mortgage, and then you can use it to help with your bills, cover health expenses or pay for home repairs.
However, it is important to note that if you default on your loan, you will have to repay the entire amount. You could default by using the loan on anything illegal, lowering the house's worth by not taking care of it, being dishonest in your original application, or not following any of the conditions set up by the lender. As each lender will have different conditions, to avoid making any mistakes, let Highline Mortgage explain your contract to you.
Although you may not need a mortgage broker to apply for a reverse mortgage, using one is beneficial to you. Highline Mortgage will help you throughout the entire reverse mortgage process, starting with finding the perfect lender, applying for your loan, laying out all the conditions, and creating a payment plan.