A home keeper reverse mortgage is very similar to a home equity conversion mortgage. Both loans are designed for people 62 years of age or older. Both programs are based on home ownership and the available equity in that home. The home must be the primary residence of the borrower and remain so throughout the life of the loan. The major difference between the two government programs is that with a home keepers reverse mortgage borrowers are required to make monthly payments on the loan. With a regular reverse mortgage the debt is not paid until the home is sold. A home keeper reverse mortgage can only be obtained through Fannie Mae.
If I Get A Home Keeper Reverse Mortgage What Are My Repayment Options
When you get a home keeper reverse mortgage you will be able to decide on the repayment plan when you are at the closing. The representative of the lender will offer several different repayment packages. These packages will be based on the amount of the loan and the age of the borrowers. Unlike many other types of mortgages, this payment plan can be changed as many times as necessary during the course of the loan. The repayment plan will also take into account the method of which you receive your money. Borrower’s that have an open line of credit will have different repayment options than those who take a lump sum.
What Type Of Payouts Are Made On This Reverse Mortgage
When you have a home keepers reverse mortgage you can accept a single payment or monthly draws. You can also arrange to have the mortgage set up as an open credit line. All these options will be discussed prior to the final closing of the mortgage. Interest rates on a home keepers reverse mortgage are generally adjustable and stay current with the regular rates.
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