There are several different types of home loans you will discover when shopping for loan programs. One special program you can come across is called a reverse mortgage, which is different from conventional and traditional mortgages. With this loan program, you borrow money against the equity in your home without having to make monthly payments.
However, one requirement you must satisfy to apply for a reverse mortgage is you and/or your spouse must be 62 or older. Your current mortgage does not have to be fully paid off, either. For instance, you owe $100,000 and your home is valued at $200,000. You could apply for a reverse mortgage to pay off the existing loan, so you would not have to worry about making monthly mortgage payments for the rest of your life.
On the other hand, let’s say your $200,000 home was fully paid off. In this case, you could apply for a cash-out reverse mortgage and get a lump sum, a line of credit to draw money from as you needed it, or a combination of both, in order to enjoy your life and use the money during your golden years.
The main thing to remember is that a reverse mortgage is still a mortgage. While you are not required to make payments on the loan, should you ever sell the home, the loan does need to be paid in full before you can receive any remaining proceeds from the sale. The loan also comes due after you and your spouse pass away.
Reverse mortgages can provide peace of mind so you can fully enjoy your retirement, but may not be right for everyone. To learn more about this loan program or other mortgage options, please feel free to contact Elite Financial at (800) 908-LEND (800-908-5363) today!