Are you a senior over the age of 62 and struggling to find the financial resources to maintain your current lifestyle or keep up with necessary home repairs? If so, a reverse mortgage home loan may be the right solution for you. This type of reverse loan home mortgage can put money in your pocket now to spend on the things you need.
What Is a Reverse Mortgage?
A reverse mortgage allows older homeowners, age 62 or older, to obtain a loan based on the equity of their home. With a reverse mortgage, homeowners do not have to repay the principal or interest of the loan until they sell the home, permanently move out of the home or die. Homeowners can choose to receive their reverse mortgage loan as a lump sum payment, fixed monthly payments, a home equity line of credit or a combination payment plan.
Pros and Cons of a Reverse Mortgage
The biggest advantage of obtaining a reverse mortgage is that it puts much-needed cash into the hands of the homeowner. Since the homeowner is not required to repay the loan until they sell the house, move out or die, there are no monthly mortgage payments to make.
The biggest disadvantages of reverse mortgages are the higher fees, interest rates and closing costs that are often associated with this type of loan. The homeowner is also responsible for paying property taxes and homeowner insurance until they sell the home.
Reverse Mortgage Loan Requirements
To qualify for a reverse mortgage loan:
- The homeowner must be over 62 years old.
- The home must be the primary residence of the borrower.
- There must be little or no remaining mortgage on the home.
- The loan amount must be for less than the value of the property.
SouthPoint Financial Home Loan Solutions
At SouthPoint Financial Services, we understand the unique demands placed on seniors today. We know how difficult it is to determine what type of home equity loan is right for you. This is why our professional loan officers will always take the time to get a clear understanding of your goals, help answer any of your questions, and work with you to help determine which senior home loan solution is ideal for your specific situation.
We also help to take the stress out of the mortgage reverse loan process. Our team will walk you step by step through the entire process to make sure you understand exactly how a reverse mortgage works and what your responsibilities are.
Learn more about reverse mortgage home loans and loan requirements by contacting our SouthPoint Financial office today, sending us an email or completing our online contact form.