The Fannie Mae Reverse Mortgage works to increase the affordability of senior homeowners to remain in their homes but also access their home’s equity.
What is a reverse mortgage?
Reverse mortgages are becoming the fastest growing home loan type in America today. This mortgage enables a homeowner to access the equity that has built up in his or her home. This type of mortgage has been designed to strengthen a senior’s financial as well as personal independence by providing funds without attaching on the burden of a monthly payment during the time spent in the home. A senior can borrow against the equity in the home to increase income or as a source of cash. The loan does not have to be repaid until the borrower is no longer living in the home or violates any part of the terms and conditions.
The ‘Homekeeper Mortgage”
Fannie Mae has created this very popular reverse mortgage product. This product benefits a homeowner who is age 62 or older and needs a way to access his home’s equity without paying the loan back while still living in the home. With the Homekeeper mortgage, the loan is provided against the value of the home. The loan funds are provided according to the payment plan that is selected under the terms; with flexibility addressing any particular needs of the borrower. This loan money may be needed for an unexpected bill or as a monthly supplemental income.
Benefits of a Reverse Mortgage
~Does not have to be paid back as long as the borrower is still living in the home.
~The older someone is when applying for the mortgage, the more he or she will qualify for.
~The total amount owed will never be more than the home’s total value.
~A very flexible type of mortgage.
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