Reverse Mortgage Basics
A home equity conversion mortgage (HECM) must be repaid in full when the homeowner dies or if the home is sold. Also, its due in full if property tax payments along with insurance are in default. A reverse mortgage loan allows homeowners to attain cash by using the equity in their home as collateral. Must be 62 years of age or older. Using the equity in your home is a powerful tool that can help you improve your overall financial well being and pay off unexpected medical bills, home loan with a low mortgage balance, debts, supplement social security income, and credit cards etc. You are still responsible in terms of paying property taxes, insurance, and utility bills.
Will the property go to the state upon death or sale or be left to my heirs?
When the home is sold, you or your estate will repay the cash issued out by the lender, plus interest and other fees to them. The remainder of the home equity belongs to you or to your heirs.
To be eligible it must be a single family home or 1-4 unit property with one unit occupied by the owner. HUD Approved condominiums and manufactured homes are also eligible.
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