Reverse mortgages could be a great option for the right type of borrower. It is vital to understand the pros and cons prior to selecting this mortgage program. This blog offers details on reverse mortgages for Southern NH homes.
Reverse Mortgage Overview
A reverse mortgage is a specific kind of mortgage that lets you convert a part of the equity in your home into cash. However, unlike traditional equity loans, borrowers do not have to make monthly payments towards the loan. The mortgage is paid back when the homeowners no longer occupy the real estate as their principal residence or fail to comply with the terms of the mortgage. The amount owed includes the equity taken out, interest on the loan, and other applicable charges.
Qualification Criteria for Reverse Mortgages
Not every home owner can apply for a reverse mortgage. You must…
- Be age 62 or older.
- Own a home that you live in as a primary residence.
- Have a qualifying property type.
- Have equity in the real estate.
- Have consulted with a reverse mortgage counselor.
The amount of a reverse mortgage is based on how old you are, the current mortgage rates, the appraised value of the real estate, and FHA mortgage insurance limits. Older homeowners are allowed to use more equity. Cash can be received all at once, a fixed amount each month, or through a line of credit.
Further Details On Reverse Mortgages For Southern NH Homes
Reverse mortgage options are provided by most mortgage companies. Up-front fees are high, so it should only be used when no other mortgage programs are feasible. Program specifics and fees can differ, so be sure to review figures from a few different companies before making a decision. The details on reverse mortgages for Southern NH homes provided above is meant simply as an overview. Program terms may change, so speak with reverse mortgage experts for details relevant to your situation.