Find Out if A Reverse Mortgage is Right For You
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How Reverse Mortgages Work
Your home is your greatest asset. Why not use the equity from your home to increase your cash flow?
A reverse mortgage is also known as a Home Equity Conversion Mortgage (HECM).
The program was created by the Federal Housing Administration (FHA) specifically to help homeowners, aged 62 years and older. A HECM can provide seniors the means to enjoy home ownership through retirement.
It may help reduce financial stress by using the equity from the home to eliminate monthly mortgage payments.
The funds from a reverse mortgage loan can help seniors supplement retirement income, pay off debt, pay for medical care and in-home services, make home improvements and repairs, or simply pay for daily living expenses.
Because there are many factors to consider before deciding if a reverse mortgage is right for you or your aging parents, it’s important to find an honest mortgage lender to help you fully understand the benefits and risks of this type of loan.
On Q Financial Reverse Mortgage Consultants advocate for you and take your financial needs into account to find the best path for your financial retirement objectives.
It’s time to take charge of your future and live your dream because this is your life.
Loan Proceeds From a Reverse Mortgage
Perhaps the best part of a reverse mortgage is that there are no house payments to pay out each month.
Instead, the lender makes payments to the borrower against the equity of the home until the property is sold, or the homeowners move or pass away.
Here are some options for how loan proceeds from a reverse mortgage can be distributed:
A lump sum of cash at closing*
Equal monthly payments as long as the homeowner lives in the home
Equal monthly payments for a fixed period
Growing line of credit that the homeowner may draw any amount at any time until the line of credit is exhausted
Or any combination of the above
With a reverse mortgage home loan the amount is determined by a formula that considers the borrower’s age, current interest rate, and the lesser of the appraised value of the home, sale price or lending limit.