Let’s start with few basic of reverse mortgage:
- Homeowners age must be 62 and over and can mee their financial obligations
- Must have enough equity to qualify
- Your name will remain on the title
- Yes, a credit check is preformed to see if you can pay your property taxes and homeowners insurance.
- Yes, you can get a reverse mortgage even if you have not paid off your existing loan, if you have enough equity
- What can the funds be used for? If you have an existing mortgage on the property that must be paid off first and then you can do anything ells without any restrictions how you spend the money
Reverse Mortgage Steps
- Meeting in person or over the phone
- Ordering appraisal of the property
- Determining the qualified amount of the reverse mortgage
- Confirming the interest rate options and loan amount
- Selecting an independent lawyer to obtain legal advice
- Legal Process
- Funds become available
The Myths and Misconceptions of Reverse Mortgage
You cannot lose your home just because you have a reverse mortgage, you continue to own your home and hold title even hold title of the home and have full control over it as you would with a regular mortgage. Lender cannot make you sell your home as long as you live in the property and kipping it maintained, you are responsible for paying your property taxes and insurance.
Note: This is a major step you will be taking, and we recommend you talk with your financial, legal and accountant advisors.
Consumer Financial Protection Bureau provide counselling for all reverse mortgage borrowers.