A reverse mortgage is for primary residence, owner-occupants, 62 years of age or older.
As long as credit is good, taxes and insurance paid to date, there is usually no income, no asset check on this loan.
There is no mandatory monthly repayment although you can pay the loan back if so desired. If you do not make any payments the interest accrues and you go in reverse. You borrow $100,000 at 4.75% fixed and at end of year you would owe $104,750 if you made no payments.
Cash taken on a reverse mortgage is not considered income.
You do not give up ownership to the home. Deed stays in your name.
The Reverse must be paid off when the primary occupants no longer occupy the home. In the case of an estate sale, the estate normally has up to a year to sell as long as someone is communicating with the Reverse Servicer.
The closing costs on a reverse vary. You can take a bit higher fixed rate and the closing costs may be only $4,500. With a line of credit (LOC) or a market fixed rate closing costs can be $10,000 – $15,000 depending on loan size.
You can choose to take a lump sum, one time at closing or can take a line of credit where you can take a certain amount during the first year and then additional monies are available year two and each year whatever portion of the line you do not use, will automatically increase year-to-year.
The amount of the Reverse Mortgage you have access to depends not only on the product you choose but on the borrower’s age and value of the home.
WE AT DML MORTGAGE PROVIDE A DETAILED BREAKDOWN OF WHAT YOU MAY QUALIFY FOR ON A REVERSE MORTGAGE.
JUST VERIFY YOUR CREDIT IS GOOD AND PROVIDE US WITH YOUR DATE-OF-BIRTH AND HOME ADDRESS AND LET US KNOW IDEA OF HOME’S VALUE AND WE WILL SEND YOU BACK A FOUR PRODUCT COMPARISON OF HOW MUCH YOU MAY QUALIFY FOR ON A REVERSE MORTGAGE AND EXPLAIN THE LOAN PROCESS IN DETAIL.