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What is a Reverse Mortgage? - Z Reverse Mortgage

Z REVERSE MORTGAGE WHAT IS A REVERSE MORTGAGE? A reverse mortgage is a loan that allows you to convert a portion of your home equity into income. When you enter into a reverse mortgage, you can choose to receive a single large payment, smaller payments every month, or a line of credit. Under a reverse mortgage, you will not have to make any loan payments until the home is sold, the borower dies, or the home is no longer used as a primary residence. WHAT DOES HECM STAND FOR? HECM stands for Home Equity Conversion Mortgage. An HECM reverse mort- gage is a loan regulated and insured by the Federal Housing Authority. Because it is government insured, your home will be protected even if your lender goes out of business or if your loan exceeds the value of your home. The loan will not have to be repaid until the house is sold, the owner dies, or the owner no longer uses the house as his primary residence. HOW DO I QUALIFY FOR A REVERSE MORTGAGE? To qualify for an HECM reverse mortgage: You (and your spouse) must be at least 62 years of age. You must own your home outright or have substantial equity in your home. Your home must be your primary residence. Eligible properties include 1-4 unit homes as well as manufactured homes and condomini- ums that meet FHA requirements. .... The home is used to secure the mortgage, so no credit check is necessary. HOW MUCH CASH WILL I GET AND HOW WILL I BE PAID? In order to determine how much cash you will receive, you will need to contact a lender and inquire about their reverse mortgage programs. The amount of the reverse mortgage will depend: On the youngest borrower's age The current interest rate The lesser of the appraised value or the HECM FHA mortgage limit of $625,500 Initial Mortgage Insurance Premium You can choose to be paid by a single large payment, smaller payments every month, a line of credit, or a combination of those options. CANI LOSE MY HOME? HECM reverse mortgages are federally insured, so that even if your loan becomes greater than your property value, you will not lose your home. As long as you continue to pay property taxes and hazard insurance, you will be able to live in your home.

What is a Reverse Mortgage? - Z Reverse Mortgage

shared by zreversemortgage on Feb 23
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A reverse mortgage is a loan that allows you to convert a portion of your home equity into income. When you enter into a reverse mortgage, you can choose to receive a single large payment, smaller pay...

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