3 Reverse Mortgage Loan Questions to Consider

What is a Reverse Mortgage Loan?

A reverse mortgage is a loan designed to allow seniors to draw upon the equity in their homes. Seniors can select to receive the loan proceeds either by a lump sum payment, by monthly installments, as a line of credit or as a combination of a line of credit and monthly installments thus providing cash flow even after retirement. The reason this type of mortgage is called a “reverse mortgage” is because the money goes directly to the home owner instead of into paying for the home.

Eventually the money paid to the homeowner is repaid with interest, however the loan generally does not become due until the borrower passes away, sells the home, no longer maintains the home as the primary residence or fails to pay property taxes, fails to pay homeowners insurance or otherwise fails to comply with the loan terms.

Why should I get a Reverse Mortgage Loan?

Getting a reverse mortgage is a big step and needs to be carefully evaluated. Many people have found that by taking a reverse mortgage they avail themselves of the equity they have built in their home.

Typically those who benefit most from a reverse mortgage are those who plan to stay in their homes over an extended period and have built a decent amount of equity in their homes. Also, due to the non-recourse feature of a reverse mortgage, the borrower (or their estate) will never owe more than the loan balance or the value of the property.

Contact one of our professionals today to find out if you have enough home equity to make a reverse mortgage a good decision for you. If you have a good amount of equity in your home and you plan on staying there for an extended period of time then a reverse mortgage might be right for you.

How do I qualify for a Reverse Mortgage Loan?

If you own your home and are 62 years of age or older, you might be eligible to apply for a reverse mortgage. The home you are thinking of taking the reverse mortgage out on must be your primary residence. There are some conditions to what type of home may qualify.

  • Typically single-family units are acceptable
  • HUD-approved Condominiums
  • Most mobile homes and co-ops are generally not eligible
  • All eligible property types must meet all FHA property standards and flood requirements

We can help you figure out if you’re eligible for a reverse mortgage. Call us today! If you're ready to get started on a reverse mortgage apply now!

Colonial Mortgage Group

Company NMLS# 70452
Paul Skeens NMLS# 7392
www.nmlsconsumeraccess.org

Licensed:  MD 17542  DC MLB70452  FL MBR1384
Licensed by the Virginia State Corporation Commission License #MC5185 & MLO-2351VA
Licensed by the PA Department of Banking License #MB35217

By refinancing your existing loan, the total finance charges may be higher over the life of the new loan.

 

Phone: 301-932-4610
Toll Free: 877-248-0500
Fax: 301-500-1201

3261 Old Washington Road Suite 1011
Waldorf, MD 20602

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