In case you are at least 62 years old and you would like to
have some cash to pay off your mortgage, have an additional source of income,
or perhaps fun your healthcare expenses – you should consider taking out a reverse
mortgage. It lets you convert a part of your home equity into cash without the
need to sell your house or pay extra monthly bills.
But you should take your time. A reverse mortgage loan can
be quite complicated and may not be the best option for you. It could use up your
home equity, which means less assets for you and your estate. In case you want
to look for one, check the different kinds of reverse mortgages and compare
them before you choose a company.
Types of Reverse Mortgage
When you are considering if a reverse mortgage is the best
one for you, additionally find out which of the three kinds of reverse mortgage
that is suitable for your needs.
Single purpose reverse mortgages – they are the least
expensive reverse
mortgage loan option. They are provided by some location and state
government agencies, and non-profit organizations, however, they are not
offered everywhere. This type of loan can be used for a single purpose, which
the lender will determine. For instance, the lender could say the loan would
only be used for home improvements, repairs, or to settle property taxes. The
majority of homeowners with moderate or low income could qualify for this type
of loan.
Proprietary reverse mortgages – these are private loans that
are supported by the companies that created them. In case you have a home with
a higher value, you might be able to get a much bigger loan advance from this
kind of proprietary reverse
mortgage loan. Therefore, if your house has a higher appraised value and
you’ve got a small mortgage, then you may be able to qualify for more funds.
Home Equity Conversion Mortgages (HECMs) – these are reverse
mortgages that are insured federally and are backed by the HUD or the U.S. Department of Housing and Urban Development.
You can use an HECM loan for any purpose you want.
Proprietary reverse mortgagas and HECMs are costlier than
conventional home loans. Plus, the upfront costs could be high. This is one
factor that you need to think about especially if you are planning to stay in
your house for a shorter time or you just want to borrow a small amount. The amount
you could borrow with these two types of loans will depend on various factors
like your age, the kind of reverse mortgage that you choose, your home’s
appraised value, current interest rates, and assessment of your ability and
willingness to pay homeowner’s insurance and property taxes.
Payment Options
There are several payment options to choose from when it
comes to the HECM. It could be a single disbursement option, a term option, a
tenure option, a line of credit, or a mix of line credit and monthly payments.
Call Reverse Mortgage Specialist if you wish to learn more about the different types of reverse mortgage loans.
David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/
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