Reverse mortgages are a relatively new mortgage product aimed at seniors with equity in their home that want to either get rid of their mortgage payment each month or get additional income to supplement what they’re currently receiving. Reverse mortgages are surrounded by a lot of misconception and many consumers tend to shy away from them before even asking important questions. Does everyone qualify for a reverse mortgage? What do I have to pay? Will I own my home? Before writing off the notion of a reverse mortgage, consumers should always seek the answers to these questions and more.
Who Are Reverse Mortgages Aimed At?
Reverse mortgages are designed for homeowners that are at least 62 years old with a moderate to high amount of equity in their home. These mortgages are used for both eliminating mortgage payments and supplying the homeowner with additional income each month that is completely tax-free. With a reverse mortgage, a senior can remain in their home, receive money from the equity each month and live without a mortgage payment, all without giving up the home they’ve lived in and loved for years.
Does Everyone Qualify For A Reverse Mortgage?
So, does everyone qualify for a reverse mortgage or is it only available to certain homeowners? In truth, only a certain population is eligible for a reverse mortgage. One of the main factors is age. Only consumers over the age of 62 qualify, and they must own the home and live in it as their primary residence. In addition, there must be at least a moderate amount of equity in the home to draw on. There are no credit checks required for a reverse mortgage and income is not a factor. Instead, only the value of the home and neighborhood, as well as equity, are considered.
Related posts: