"How do you find the best available interest rate? Multiple quotes from multiple lenders. 99% of mortgage sites offer quotes and rates from their main page. Don't be lazy with your refinance! Always get multiple quotes!" |
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Reverse Mortgage
What is a reverse mortgage?
A reverse mortgage enables homeowners that are 62 years of age or older to convert a portion of their home's equity into tax-free income without having to sell the home, release title, or acquire a new monthly mortgage payment. Instead of you making a payment to your bank, your bank may actually make payments to you.
With the baby-boomers coming of age, I anticipate Reverse Mortgages to be the next "big thing" in lending. If you are 62 years of age or older, you can actually get paid every month for your home!
How much money will I get paid every month?
This will depend on your age, the value of your home, the equity in your home, the current interest rate, and other determining factors.
Can I get a lump sum payment instead of monthly payments?
You can choose to:
How do I know if my home qualifies for a reverse mortgage?
Single-family homes, 2-4 unit properties, manufactured homes (built after June 1976), condominiums, and townhouses qualify for reverse mortgages.
What if I already have a home loan?
You may still qualify for a reverse mortgage even if you have an existing loan on your property. If there is a negative difference between your current home loan and the estimated value of your home, you may be required to pay the negative balance prior to acquiring a reverse mortgage. However, you cannot pay this negative balance by acquiring more debt. It must be paid by alternative means (such as a gift).
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