Are you age 62 or older? Do you need cash to cover living expenses and health care? If so, you may qualify for a reverse mortgage. Here’s what you need to know.
What Is A Reverse Mortgage?
Your home is a source of accumulated wealth in the form of equity. Unfortunately, you can’t tap into that wealth unless you sell the home, and for many older homeowners, selling isn’t an option. That’s where the reverse mortgage comes in.
With a reverse mortgage, a lender makes monthly payments to you as the homeowner, giving you access to the equity in your home without selling. You will not have to pay back this money as long as you live in the home.
Are You Eligible?
In order to apply for a reverse mortgage, you must meet these requirements:
- Age—All borrowers listed on the property must be at least 62 years old.
- Current on taxes and insurance—While you are not required to pay off the loan, you must remain current on taxes, insurance, and any homeowner’s association dues.
- Primary residence—The property must be your primary residence. It may not be a vacation home or investment property.
- No other liens—Your existing mortgage must be paid off and there may not be any other liens on the property.
- Maintenance—You must maintain the property and cover any necessary repairs.
- Responsibility for repayment—In the event of the borrower’s death, the heirs or estate will be required to pay either the mortgage balance or 95% of the appraised value, whichever is less.
What Should You Do Next?
If you have questions about whether you qualify or whether a reverse mortgage is right for you, call Money Street Mortgage to talk about your options. We will help you understand the reverse mortgage process and walk you through the loan application, approval, and closing.