Knowledge makes for better decisions. When it comes to picking out a reverse mortgage, here are a few things you’ll need to know:
There are three types of reverse mortgages you can choose from. There’s the single purpose reverse loan. The downside to this is that you can only use it to pay for certain things, and the lender gets to say what those are, says the Federal Trade Commission. Proprietary reverse loans work best for high-value homes. For seniors, though, Home Equity Conversion Mortgages, or HECMs, are most ideal.
How much money can you get out of that loan? It all depends on a number of factors, which include: your age, the value of your home, the reverse mortgage you pick, your financial capabilities, and today’s interest rates. Some loans, like the HECM, require loan applicants to be at least 62 years of age. You’ll need to have your home appraised as well to make sure that the market value is accurate.
You can use it to pay for any remaining balance on your mortgage, so you can take that load off your shoulders and have an easier time managing your monthly budget. Need funds to repair or renovate your home or to cover the costs of long-term care? Then an HECM can be the best solution for you. You won’t even have to worry about leaving your heirs with debt, since the loan is based on your home’s appraised value, ensuring that you keep well within the limits.
You do have to shell out cash for fees, interest rates, and other costs. Your budget has to have room for your property taxes, too. If not, that could make you lose your home.
If you want to know more, look for a reverse mortgage specialist near you and ask for help. Browse this website for more information.