People think they’ll be able to travel when they retire. Unfortunately, living on a fixed income isn’t easy, and the money for travel isn’t there. Many seniors may be able to use the equity in their home, to live the life they want. Reverse mortgages let seniors use their home equity, while they’re alive. And, the best thing about a reverse mortgage is there are no monthly payments. You have to be at least 62 and own a home with equity. Equity is the difference between what you owe and what the
home appraises for. Eligible candidates must not have a history of defaulting on a government loan.
What is a Reverse Mortgage Richmond will help seniors understand the different types of reverse loans. The HECM standard fixed is the most popular. It provides seniors with a loan where the interest rate never changes. The standard fixed is also the best option for seniors who want the maximum amount of equity in a lump sum. Another popular option is the HECM standard adjustable. Homeowners can also get the maximum amount of equity, but the interest rates may go up.
The process of applying for and closing on a reverse mortgage loan takes about three months. Participants are required to pay for a mandatory HUD counseling session, and a home appraisal. Reverse Mortgage Richmond explains that upon death, a move or a sale, the loan becomes due. There will be less equity available for your heirs. You will continue to pay for taxes, insurance and maintenance. Seniors can choose how they want to receive their money–monthly or in a lump sum.
Further, the income is tax free and there’s no risk of foreclosure. There are some new benefits to the program. The government placed an interest cap on reverse loans. Therefore, the interest rates won’t go too high. What is a What is a Reverse Mortgage Richmond says seniors can now qualify for a reverse mortgage, if they live in a mobile or manufactured home. You worked hard for your home and it’s an asset to be used. If you want to travel or just quit worrying about paying bills, try a reverse mortgage loan.