A reverse mortgage is a good idea for seniors who are having a hard time financially. Many seniors want to enjoy life and travel when they retire. However, sometimes, the money is just not there. They live on a fixed income, and there is no money left over for extras. Seniors who own their own home may want to consider a reverse mortgage. A Reverse Mortgage is a loan for senior homeowners that uses a portion of the home’s equity.
The homeowner receives the tax-free money in a lump sum at closing. The loan does not have to be repaid until the homeowner moves or passes away. The estate has six months to repay the balance of a Reverse Mortgage in Chesapeake, or sell the home to pay it off. All remaining equity goes to the estate. The only advantage to not doing a reverse mortgage is leaving the home in an estate. That benefits the family, and not the homeowner. Eligibility requirements include:
* owing a home
* all owners on the title must be at least 62
* the home must be your primary residence
There are no income or credit requirements. However, there are some requirements on the type of home that may be used. The property has to be a one to four unit home, a manufactured home built after 1976 or a condo. People interested in a Reverse Mortgage in Chesapeake should contact Reverse Mortgage Pro. The company has a great reputation in the Virginia Beach and Chesapeake area.
There are different types of reverse mortgages. A Home Equity Conversion Mortgage (HECM) is federally insured. This is the most common type of reverse mortgage. The government limits the amount an HECM lender may lend based on a person’s age, home value, location and current interest rates. Most seniors use the fixed rate HECM because the interest rate stays the same for the life of the loan. Variable rate products are used when a senior chooses to keep the loan for a shorter period of time or when fixed interest rates are higher. People work hard to pay for their homes. Why not use the equity for your enjoyment?
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