Considering A Reverse Mortgage? Talk To The Experts
A reverse mortgage is a type of loan available in the United States for people aged 60 and older. In a reverse mortgage, one borrows back money that has already been put into the home; that is, they are borrowing off their equity. The money can be released in monthly payments or a single lump sum, and can be used for anything from vacations to medical treatments.
Payments in a reverse mortgage do not usually become due while the borrower is still living in the home; rather, the amount plus interest is paid back when the home is sold, or if the owner passes away or moves to a new home. Borrowers are allowed to live elsewhere for up to a year, usually to stay in a retirement facility.
The amount you can borrow varies depending on several factors, including your age and the equity that you’ve built up over the years. One can only borrow from the debt-free part of the home, so you may have to clear all other debts on the property (such as liens and second mortgages) before you can take out the loan. A reverse calculator such as All Reverse Mortgage Company (allrmc.com) can give you an idea of how much you’re entitled to.
AllRMC is a family-owned outfit run by experienced mortgage banking professionals. It has long advocated the benefits of reverse mortgages to seniors and takes pride in finding no less than the best terms for every borrower, as well as ensuring a hassle-free process all the way to closing. Unlike other firms, they do not pressure borrowers into settling for specific deals—they always try to find the best fit depending on your circumstances. This practice has earned them hundreds of positive reviews and an A+ rating with the Better Business Bureau.
Funds received from a reverse mortgage are tax-free, but the interest is usually higher than that of a regular mortgage. Some loans even cost as much as a credit card or other line of credit. Lenders may also require you to pay for a home appraisal (to determine how much you can borrow), legal fees, and a variety of closing costs. Needless to say, taking out a reverse mortgage isn’t cheap—but in some situations it’s more than worth it. Working with an experienced company such as AllRMC can help you make smart decisions and make your money work for you.
