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With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Choosing between a monthly payment, a line of credit, or a lump sum, your loan amount is determined by a variety of factors including age, equity in the home, value, and current interest rates. The loan doesn't have to be repaid until the homeowner sells his home, moves away, or dies, or fails to meet the terms of the loan. At the time your house has been sold or is no longer used as your main residence, you (or your estate) must pay back the lending institution for the funds you obtained from your reverse mortgage as well as interest among other fees.
Are you Eligible?
The conditions of a reverse mortgage loan usually are being 62 or older, using the house as your primary living place, and holding a low remaining mortgage balance or having paid it off. Any existing liens against the home will have to be paid off at closing using the loan proceeds from the new reverse mortgage or your other assets.
Many homeowners who live on a limited income and find themselves needing additional funds find reverse mortgages helpful for their circumstance. Reverse Mortgages can have adjustable or fixed rates. The lending institution can't take the property away if you live past the loan term nor will you be forced to sell your home to pay off your loan even if the loan balance is determined to exceed current property value, though you must continue to make payments for taxes and insurance and maintain the home to avoid triggering foreclosure. Call us at (918) 748-4470 to discuss your reverse mortgage options.
These materials are not from HUD or FHA and were not approved by HUD or a government agency.
1st Security Home Mortgage Corp. can answer questions about reverse mortgages and many others. Give us a call: (918) 748-4470.