You have probably seen a lot for reverse mortgage advertising on television or read about it in magazines, but the information can seem complex and hard to understand. It is not unusual for reverse mortgage information to be confusing to most people. Even just choosing a company that provides this option can be stressful. Reverse Mortgage in Chesapeake can be cleared up when you have the right resources at hand. The following will cover some of the basics of the most confusing things about reverse mortgage.
What is it?
A reverse mortgage is a home loan type designed for people 62 and older to take advantage of their home’s equity. It allows you access to instant money without making monthly payments while you maintain ownership of your home. Simply put, it is an equity loan secured by the equity in your home that allows you to defer your mortgage interest.
Who qualifies?
The requirements for reverse mortgage are that you must be at least 62 years old and the house has to be your primary residence. To qualify as a primary residence, you must live in the house for at least six months of the entire year. You cannot get a reverse mortgage for second homes or investment properties.
What if you have credit problems?
Since reverse mortgages do not require that you meet any credit requirements (outside of liens), credit problems are usually not an issue. You also do not have to meet income requirements to qualify for a Reverse Mortgage in Chesapeake.
Does your home have to be owned outright?
A common myth is that people think they must have no current mortgage or lien on the house to qualify. The truth is that many people choose this option to pay off their mortgage, liens, or equity loans so they won’t have a payment.
These are the basics you should know about reverse mortgages. You should also know they are not always used by people desperate to get out of debt, they are non-recourse loans which means your heirs are not responsible for paying off the loan, and you are not signing your home over to the government or lender. If you are 62 or older and interested in learning the details of reverse mortgage, Click Here to learn more from Reverse Mortgage Pro.
