If you are over 60 and own your home, you may be interested in learning more about reverse mortgages. While you may know a lot about traditional mortgages, it is important to learn all you can about reverse mortgages before getting this kind of loan.
What is a reverse mortgage in Richmond?
A reverse mortgage is a loan based on the equity in your home. This financial product is only available to homeowners over age 62 and does not need to repaid until the homeowners permanently move out of the house or condominium. Most reverse mortgages are repaid by heirs when the homeowner dies or moves into an assisted living facility.
By getting a reverse mortgage, you can use the equity in your home without selling your property or managing a home equity loan. With a reverse mortgage, the makes payments to the homeowner who can use the money any way they like. Homeowners have the choice of receiving their loan in one lump sum, as monthly installments or as a line of credit. Pre-loan counseling is required to ensure that senior homeowners understand their options before entering into the contract.
When trying to understand reverse mortgages, you should note that, while you will not have to make payments on the proceeds of the loan, you will not be able to leave the equity in your home to your children or grandchildren. Reverse mortgages are best for seniors who need the extra money to pay for monthly expenses, make improvements to their home to make it more accessible as they age or to travel. If your children are already financially established and do not need your home, a reverse mortgage may be a good choice for you.
Some of the questions to ask your lender include: What is a reverse mortgage in Richmond?, What fees are involved?, How much do I qualify for in a reverse mortgage? and Is a reverse mortgage right for me and my family? Your lender can answer all of questions and help you decide whether a reverse mortgage or a home equity loan are best for your current financial situation.
