Reverse Mortgage Loans - Reverse Mortgage Lender
- Could you use extra cash to consolidate debts or to supplement your monthly income?
- Do you have equity in your home?
- Would you like to not have to make mortgage payments in the future?
If the answer is yes, then our reverse mortgage loan programs may be for you! We are a [statelong] reverse mortgage lender with a variety of [stateshort] reverse mortgage loan products.
What is a reverse mortgage?
A reverse mortgage is a special type of home loan that lets a homeowner convert the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to the homeowner in a number of ways: in a lump sum, in a stream of payments, or as a supplement to Social Security or other retirement funds. But unlike a traditional home equity loan or second mortgage, with a reverse mortgage repayment is not required until the borrowers no longer use the home as their principal residence.
Use of Funds
The funds from a reverse mortgage can be used for anything. Common uses include supplementing retirement income to cover daily living expenses; repairing or modifying your home (i.e., widening halls or installing a ramp); covering health care expenses; paying off existing debts; taking a vacation; paying property taxes; and preventing foreclosure. There are no income or medical requirements to qualify. You may be eligible for a reverse mortgage even if you still owe money on an existing mortgage.
You can choose to receive the money from a reverse mortgage all at once as a lump sum, fixed monthly payments (for up to life), as a line of credit, or a combination of these. The most popular option – chosen by more than 60 percent of borrowers – is the line of credit, which allows you to draw on the loan proceeds at any time.
What are some of the benefits of a reverse mortgage?
- Strengthen your personal and financial independence.
- Help pay for health care or other needs.
- You can never lose your home in foreclosure as long as you maintain the property tax and insurance payments.
- The loan is only paid off when the house is sold by you or your heirs, or all borrowers move out of the house.
- Keep your Medicare or Social Security benefits.
- Use it as a credit line and draw upon it as needed.
- Get all your cash right away.
- Get the best of both—get cash now and have a balance in reserve to use as a credit line.
- No Income Requirements: The homeowner does not need to be working and is not qualified based on income.
As the homeowner receives monthly cash income, the loan balance increases. In the following twelve-month example, the homeowner begins with a debt-free home. As money is received by the homeowner, the mortgage grows. By the end of month twelve, the homeowner owes the bank $6,000 plus $232.44 interest. All Reverse Mortgage loans have a variable rate.
|Regular monthly advances||$500|
|Annual interest rate||7.0 %|
|Monthly interest rate||.583% (.07 / 12)|
|Month||Beginning Balance||Interest||Ending Balance||Cash Disbursement|
*Many criteria are considered when determining the reverse mortgage loan amount, interest rate, etc.
Call us now at (800) 876-LOAN to speak to one of our [statelong] reverse mortgage specialists or click here to have one of our [stateshort] reverse mortgage specialists give you a call today.
If you are interested in applying for a reverse mortgage, you can apply online now.