Unlike a regular mortgage where you pay a lender each month to buy your home over time, a Reverse Mortgage is designed so the lender pays you. The payments are determined by the equity of your home. and you’re not required to pay the lender back until you die or move out of the home.
A Reverse Mortgage can be advantageous for people who own their home or are close to owning their home. These types of mortgages can be extremely complex, which is why it’s important to choose a trusted mortgage broker to explain the pros and cons of a Reverse Mortgage.
Call Maine Mortgage Solutions LLC at (207) 730-1495 to see if a reverse mortgage is right for you.
How Do I Know if a Reverse Mortgage is Right for Me?
Remaining Balance on the Original Home Loan
If you own your home outright, or you’re close to paying off your home, a reverse mortgage could be a good opportunity for you. Because you have little or no outstanding balance on the original loan, your home has gained a considerable amount of equity.
Not Moving Any Time Soon
You are required to pay back your reverse mortgage loan once you move from the home. It also doesn’t make sense to pay for the upfront costs if you’re going to move within a few years. Remember, the longer you live in the home, the more equity you build.
Financially Stable to Maintain Costs
With a reverse mortgage, you still have to pay for property taxes, homeowner’s insurance, general home maintenance. In fact, if you falter on your monthly or yearly costs, the lender can require you to pay back the loan sooner or the tax authority can repossess the home.
Age of the Borrower
Reverse mortgage borrowers must be at least 62-years-old. In case of your spouse is younger than 62 at the time you die, they are protected from losing the home, but they won’t be eligible to receive any more proceeds. It’s ideal for both you and your spouse to be 62-years-old.