Reverse mortgages
Reverse mortgages are a special type of mortgage that allows older homeowners to borrow against the equity in their home with no repayment required as long as they continue to live in the home.
Proceeds are generally tax-free, and don’t usually affect Social Security or Medicare benefits. The borrower keeps the title to the home, and does not have to make any monthly payments as long as they live in the home. The home cannot be foreclosed due to missed mortgage payments, since none are due.
In some cases you can use the money for whatever you want (depending upon the type of reverse mortgage you apply for), and in many cases there are no income restrictions. One caveat is that they are generally more expensive than other mortgages to originate, so if you plan to remain in your home for only a short time, a reverse mortgage may not be your best choice.
There are several types of reverse mortgages available. Proprietary reverse mortgages are one kind, offered by private lenders and generally with fewer restrictions. This type of reverse mortgage can be especially suitable if your home is more valuable and you would like more cash up-front than may be available from other types of reverse mortgages.
Some states are becoming more competitive, with a greater percentage of seniors coupled with many valuable homes, such as the market for
In such an environment as this, a mortgage broker can assess your situation and present you with a number of offers from different lenders in order to secure the best terms for your particular situation. Particularly if you are in the market for a CA reverse mortgage, or any other location where competition is keen among lenders, be sure to contact a broker to consider the offers from their lender’s network, even if you are considering a different type of reverse mortgage.
Entry Filed under: Mortgage