You’ve probably heard the television or radio advertisements touting the benefits of reverse mortgages. What you may not know is how to find effective reverse mortgage lenders in Richmond. The advertisements are general in nature and can leave the listener confused, so if you find yourself asking questions about the benefits of reverse mortgages, you’re not alone. A qualified lender would be knowledgeable, and would be a great resource to clarify and answer some of those questions that might be bothering you. They should be able to easily define reverse mortgage, know how much money you might be able to get from your home, and give you options as to how you might receive payments. With a little research and a few phone calls you may be on your way to find effective reverse mortgage lenders in Richmond.
A lender who knows what he is doing would readily be able to define what a reverse mortgage is. He might start out by saying that a reverse mortgage is a specific type of loan that enables borrowers to draw upon the equity in a home and use it as cash. He may also inform you that the FHA has a reverse mortgage plan known as a Home Equity Conversion Mortgage, or HECM, which, under certain guidelines, does not require borrowers to repay the loan. If a borrower no longer uses his home as his primary dwelling, or if he doesn’t meet his mortgage obligations he may be subject to repayment. Otherwise, he would be entitled to draw upon the equity in his come and convert it into cash.
Another topic knowledgeable reverse mortgage lenders in Richmond would be able to give advice on is how much money might be available to you. He may respond by telling you there are several factors that influence the amount of money you may be entitled to. Expenses like interest and mortgage insurance can make a difference in how much money you might get. Because these expenses fluctuate, it can be difficult to really nail down an exact amount, but a mortgage lender should have the ability to give you a general idea. He may also inform you that the payout amount would be subject to an appraisal, and generally would not exceed the FHA’s limit of $625,500.
When settling on an HECM there are five payment options, which effective reverse mortgage lenders in Richmond would be familiar with. Do your research and find someone with the knowledge and determination to help you. Finding reverse mortgage lenders in Richmond would benefit you in your quest to better understand the benefits and drawbacks of a reverse mortgage.
