What is a reverse mortgage?
Eliminate those “what if” feelings / Make the most of retirement
A reverse mortgage is a special type of home loan allows you to borrow against the equity you’ve established in your home. The “reverse” part of a reverse mortgage is that instead of making monthly payments you receive them. A reverse mortgage can help:
- Eliminate an existing mortgage
- Supplement your income
- Avoid foreclosure
- Cover medical expenses
- Update your home
- Pay off existing debt
Enjoy financial freedom
You are eligible to receive a Reverse Mortgage if you are older than 62 years old, own and occupy your home as your principal residence. There are no income; employment or credit requirements to qualify. Lender’s use a formula based on the youngest borrower’s age and the FHA Lending limit, your home’s appraised value and current interest rates. Usually the older you are the lower the rate and the more money you will receive.
You can choose how you want to receive your cash: a lump sum, monthly payments, as a line of credit or a combination of all options.
Feel secure with your decision
You do not need to repay the loan until your home is no longer your principal residence. You will need to keep current on tax and insurance payments and maintaining the property.
You and your heirs can pay the balance due at any time with no penalty, or sell the home and use the proceeds to pay off the Reverse Mortgage. Keep in mind that your home will likely appreciate over the years and that any equity left after you repay your loan will always belong to you or your heirs.
We’re with you all the way
Since each senior’s situation is unique, it is important that you talk to someone you can trust when exploring your Reverse Mortgage options. Contact Cambria Mortgage today – we specialize in helping senior homeowners make the most of retirement.