Reverse Mortgages have become a popular alternative for many senior homeowners needing access to the equity they have accumulated in their home after years of monthly mortgage payments. As the name implies, this type of loan can be used to reverse the owner’s monthly cash flow. Rather than making monthly house payments to your lender, you can elect to have monthly disbursements made directly to your bank account. Qualifying for a reverse mortgage loan is simple. You must be 62 years of age or older and have equity in your home. Since you are the one being paid, there are no credit checks, no medical evaluations and no source of income required for obtaining a reverse mortgage. Proceeds from a reverse loan can also be paid to you in a lump sum or your reverse mortgage lender can establish a home equity line of credit (HELOC) for immediate equity access to as little or as much tax-free cash whenever it’s needed.
As long as you continue to live in your home, you will retain ownership and will never need to repay the loan. Your reverse mortgage lender does not own your home. You retain title to your home and, once the property is passed to your estate, your heirs can elect to refinance the home with a traditional mortgage, sell the property and pocket the difference, or walk away allowing the reverse mortgage lender to settle the payoff. Since reverse mortgages are non-recourse loans, the amount owed will never be more than your house is worth at the time your home is sold by you or your estate. You or your spouse are required to occupy your home as your primary residence. Should both of you leave your home for twelve consecutive months, e.g. for nursing home care, the reverse equity loan must be repaid at that time through the sale of the home or the refinancing of your property.
With a traditional mortgage, or a home equity line of credit, a senior homeowner must have sufficient income versus their debt ratio to qualify for a home equity loan. When applying for a reverse mortgage, it is very different. The amount you can borrow depends upon your age, the current interest rate and the appraised value of your home. Typically, the older you are and the more equity you have in your home, the more you can borrow. To determine how much money you might be eligible to receive, try our reverse mortgage calculator. If you are a senior living in your home, contact Trinity Reverse Mortgage at 1-866-707-4664 for additional information about using a HECM to access the equity in your existing home to accommodate your needs for an independent retirement lifestyle. California residents welcome! Call today for your “No Obligations” free quote.
