How A Reverse Mortgage Could Work For You
If you have equity in your home, you’re at least 62-years-old and would like to convert that equity into cash, a reverse mortgage may be beneficial for you. If you qualify, the housing counselors at Advantage CCS are ready to help walk you through the process in a reverse mortgage counseling session.
Understanding Reverse Mortgages:
A reverse mortgage is a refinancing option available to older homeowners who have built up substantial equity in their property. In a reverse mortgage, the money is drawn based on the value of the property without an immediate repayment obligation, because the lender expects repayment by the sale of the property in the future.
To learn more about any aspect of reverse mortgages, including the information below, schedule a reverse mortgage counseling session with an HUD-approved credit counseling agency like Advantage CCS.
The Benefits Of A Reverse Mortgage:
- The ability to use your home equity as tax-free income.
- Access to a loan without income guidelines or credit requirements.
- You can stay in your home without a loan payment for as long as you live in the home.
Pre-requisites For A Reverse Mortgage:
- Everyone on the deed must be at least 62 years old.
- The home must be your primary residence.
- The home may need to meet Federal Housing Authority standards.
- You should have equity in your home.
- You must complete a counseling session from an organization like Advantage CCS.
You Can Receive Your Money In:
- A lump sum payment.
- A monthly income.
- A line of credit.
- A combination of a monthly income and a line of credit.
Additional Points:
- Reverse mortgages have upfront fees that include loan origination fees, mortgage insurance premiums, an appraisal fee, closing costs, a service fee set aside and possibly legal fees.
- Borrowers can use the money in any way they wish.
- Borrowers make no monthly payments on a reverse mortgage during its term. The loan is repayable when the borrower sells the home or permanently moves out.
Schedule Your Reverse Mortgage Counseling Session
Anyone considering a reverse mortgage must first go through a reverse mortgage counseling session with a housing counselor. To set up a counseling session with a certified housing counselor at Advantage CCS, call (866) 699-2227 or Contact us via our Online Form.