Reverse Mortgages and Home Equity

A reverse mortgage is a home equity loan. Instead of selling your home for cash, a reverse mortgage converts a portion of your home’s equity into the funding you need. Reverse mortgages are typically great options for anyone with decent home equity. Some people also use this type of mortgage as an excellent way to plan for their retirements.

How Does a Reverse Mortgage Work?

Traditionally, having a mortgage means paying back on this loan each month. However, a reverse mortgage is the opposite of a traditional mortgage. Instead of a borrower paying money each month, they receive money through a reverse mortgage.

The borrower doesn’t have to repay a reverse mortgage home equity loan until they pass away, sell their home, or move out of it. However, borrowers obtaining reverse mortgages must pay property taxes and homeowner’s insurance while maintaining the mortgaged property.

If you choose a reverse mortgage, you have options for how you’ll receive your funding, including:

• Monthly payments
• A lump sum
• A line of credit
• A combination of a monthly payment and a credit line

Several vital factors determine how much you’ll receive from a reverse mortgage, including your age, current interest rates, and the overall value of your home. A reverse mortgage broker can help you understand these factors and how much you qualify for.

Who Are Reverse Mortgage Equity Loans Right For?

A reverse mortgage is best if you:

• Are a homeowner
• Are at least 55 years old for a conventional loan or 62 for an FHA loan
• Are not planning to move anytime soon
• Can afford to maintain your home
• Want to supplement your income or set money aside

The Benefits of Reverse Mortgage Home Equity

• Settling debt and other expenses
• Monthly payments aren’t required
• Improves monthly cash flow

If you’d like to learn more about this type of mortgage, contact Lend 4 You. Lend 4 You is a reverse mortgage broker with over 30 years of experience in the lending industry. Contact us today, and we’ll help you find a loan that suits your needs.