A reverse mortgage is a specialized form of loan for those 62 years and older. It offers a way to entertain the lifestyle you imagined, from long held dreams of RVing or travel, to the changing desires that come with events like children moving to different states, or just simply the ability to age in financial comfort.
All the hard years of work can be given to you in the form of cash from the equity of your home. This means all the years of mortgage payments to keep your home asset can be accessible to you now. Your home can actually be put to work for YOU.
When you take a reverse mortgage you retain ownership and the title. Very little will change from all the previous years of homeownership, except you will have the ability to cash in on all the value that has been accruing during your years of dependably paying to live there – while living mortgage and loan payment free.
A reverse mortgage is also called a Home Equity Conversion Mortgage (HECM). This unique type of loan comes with peace of mind since the FHA backs it with a 100% guarantee that you will never owe more than the actual market value of this cherished possession. When you take a reverse mortgage the loan does not come due until the last borrower passes away or moves permanently, and at that time there are options available to keep the home in the family or sell it.
More protection is offered as well, as HUD counseling is not only offered, it is required. The counseling is from an accredited independent third party and takes place before any costs for the loan are set in motion. While this may seem like a requirement, it is more of a privilege so you can understand all the details of reverse mortgage.
The funds from a reverse mortgage can be accessed via a lump sum, monthly installments, line of credit, or even to purchase a home. There are no limitations as to how the money is spent – that is completely up to the borrower.
Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington. Contact Janis and learn if reverse mortgage is right for you.