Most Frequently Asked Questions About Reverse Mortgages
Reverse mortgages are a unique type of financing option that offer older homeowners the opportunity to convert their home equity into cash while still being able to live on the property. As with any major financial undertaking, there are many things to consider and complex guidelines to understand with a reverse mortgage. If you are a senior citizen in West Palm Beach, St. Pierce, or Tampa Bay, Florida, and interested in exploring your financial options with a reverse mortgage, CTC Mortgage is here to help. Continue reading to get answers regarding the most frequently asked questions about reverse mortgages.
How Does A Reverse Mortgage Work?
Reverse mortgages are home loans that are for people 62 years or older that allow them to convert their home equity into cash. Rather than making mortgage payments each month to a lender, which is common with traditional loans, the lender actually makes payments to the borrower. Throughout the time that the borrower lives on the property, monthly mortgage payments will not be required; the reverse mortgage only becomes due when the borrower moves out or dies.
What Type Of Homes Can Be Purchased With A Reverse Mortgage?
A reverse mortgage can be used to purchase many different types of properties, such as a single-family home or a multi-unit home with up to four units. In certain cases, townhomes, condos, and manufactured homes can also qualify for a reverse mortgage.
Who Owns The Home In A Reverse Mortgage?
The borrower remains the owner of the home in a reverse mortgage. The reverse mortgage contract will be terminated when the borrower relocates or when they pass away. At that point, the home will be transferred over to the lender when the contract ends if the borrower’s heirs do not wish to pay off the remainder of the loan balance.
What Are The Advantages Of A Reverse Mortgage?
A reverse mortgage can offer a borrower several benefits. First of all, it can offer retired people a supplemental source of income; they can use the payments for other financial needs such as home repair, paying off other debt, while still being the owner of the home and living in the home. Additionally, the money received from a reverse mortgage is not taxable and the price of a reverse mortgage is generally cheaper than buying and moving to a new home.
Get Your Reverse Mortgage Questions Answered
A reverse mortgage can be a great financing option for some aging homeowners, although it may not make financial sense to others. Therefore, you will want to work closely with your lender to understand what’s best for you. If you have questions about a reverse mortgage in West Palm Beach, St. Pierce, or Tampa Bay, Florida, contact CTC Mortgage today for a consultation.
