Are you over the age of 62? Have you considered a reverse mortgage? Reverse mortgages are designed for older homeowners that need to take into their home’s equity without the monthly mortgage payment. Borrowers have their home’s equity paid out to them monthly. Reverse mortgages are often used as part of a retirement planning tool. People over 62 can tap into their home’s equity and use it for the purchase of another home, or for other things.
Should I Apply for a Reverse Mortgage?
To know if it is right for you, contact Fairway Mortgage. Our financial advisors can provide you with helpful information pertaining to your current mortgage. Here are some things that do make sense for people applying for a reverse mortgage:
- Want to access the money from their home’s equity for income
- Plan on staying in the home
- Can afford to maintain their home, pay insurance, and taxes without the need to borrow money to cover these expenses
A lot of people turn to reverse mortgages because they help to improve cash flow and give them the chance to pay off their existing mortgage.
How it Works
A reverse mortgage is similar to the application for other loans. Our experts will be here every step of the way to ensure your documents are secure, and we are here to answer any questions you may have. Here are some of the things you can expect:
- Lenders pay the borrowers a percentage of the home’s equity
- When the borrower dies or moves, it will need to repair
- You must be 62 or older, own the home outright or have a small mortgage
- You cannot be delinquent on any federal debts
- Credit checks are required
Check back next week for our next section about reverse mortgages and how they can improve your life!