What is a Reverse Mortgage Program? This is a one of a kind mortgage option available to homeowners age 62 and older. Due to the years of hard work and building up equity in the property, homeowners have the ability to leverage their equity as they see fit without having to make monthly payments! The loan would be repaid when the last surviving borrower no longer occupies the property.
In what form can you receive your funds?
- Lump sum
- A Line of Credit
- You may also receive your funds in monthly payments
Unlike your traditional mortgage where you make monthly payments and build equity, a reverse mortgage program takes the equity from your home and gives it back to you. Homeowners instead wind down their equity and receive payments. Some reasons to pull out equity is to repave your driveway, building a beautiful stone wall, new patio, purchase new appliances or furniture, and many other reasons.
Typically you may take about 60%+ of your home’s equity. Anything remaining after the last surviving borrower vacates the home, any existing equity belongs to the homeowner’s heirs. But how much can you receive? That depends on a number of factors. Some of these important factors are:
- Age of the youngest homeowner
- Current value of the property
- Balance on existing mortgage loans
- Current Interest Rates
The pre-approval process is easy for reverse mortgages. Please give me a call today for a free consultation.