As a leader in providing Reverse Mortgages for clients, I’m often asked a lot of questions. So I’ve outlined below some of the more common questions. Of course please email me if you have specific questions not covered below.
Suffice to say that a Reverse Mortgage may be just what you are looking for so that you can pull money or income out of your home, without being obliged to make a payment. As a result you do not have to qualify like you would in a regular mortgage. This has significant advantages for people over the age of 55 who are looking at reducing costs, enhancing their lifestyle or taking care of a serious medical situation. You can not obtain this product from your bank!
Here are some frequently asked questions.
How can I receive my money?
You can chose to receive it all at once, in monthly instalments, as a credit line or a combination of these. That’s a lot of flexibility!
How much money will I receive?
The amount will depend upon the value of your home, your ages and the lending limit in your area that the lender establishes. Generally speaking it’s somewhere between 20% and 50% of the value of your home.
When do I pay the mortgage back if I’m not making any payments?
The mortgage would be paid back when the property is sold. Your heirs can keep the home as long as the mortgage is paid off.
Will I ever owe more than the value of the home?
No, in no event will the repayment amount exceed the value of the home at the time the loan comes due!
What do the rates look like for a Reverse Mortgage?
For a 5 year term the current rate (January 2012) is 5.95% an historically low interest rate for any mortgage. If you select this mortgage, there are no legal, closing or administrative costs. You would still retain a lawyer for independent legal advice and the lender would request an appraiser to verify the property value.
So you can see, how easy it is to obtain a Reverse Mortgage. The benefits are great and it allows you to do those things that need doing or that you want to do, but didn’t have the money to do so.
Imagine that your home is worth $400,000 and you could obtain 25% of it’s value as a Reverse Mortgage. That’s $100,000 to use however you wish with no tax consequences or payments!
Please contact me if you’d like to learn more, at the contact information on this website.
