What is a reversible mortgage?Who can qualify for a reversible mortgage?Is there an age limit on a reverse mortgage?Do I still own my home with this mortgage?
A reversible mortgage is a type of annuity plan where a mortgage company pays the property owner a set amount of money each month that is based on the equity in their home. Payments from a reversible mortgage are based on the age of the participant, the amount of equity in the home and other factors such as life expectancy.
Who can qualify for a reversible mortgage?
Any person that owns a home, meets the guidelines for the age restrictions and has equity available in their property can qualify for a reversible mortgage. Many different companies offer reversible mortgage programs. Consumers that are interested in the program should shop around for the best program suited to their individual needs.
Is there an age limit on reverse mortgages?
According to federal law you must be at least 62 years of age to apply for a reversible mortgage. This age limit is set to ensure that the people who apply for this type of income do not outlive the amount of equity that is in their home.
Do I still own my home when I get a reverse mortgage?
When you get a reverse mortgage you retain all property rights to your home for the length of time you live in the home. You may loose your property rights if the property falls into severe disrepair. Many reverse mortgage companies have a clause that states if the property fails to be kept up to livable standards they will claim possession to the home to protect their monetary interests. If you enter into a nursing home or assisted living facility you will also forfeit rights to the property. Otherwise, if you maintain the property and continue to live in the home you have full ownership privileges to the property.
*Affects pricing. With the No Closing Cost
Option, borrowers finance the closing costs instead of paying for them at
closing. Borrowers who pay closing costs at closing may qualify for a lower
interest rate. Some upfront fees (ex. credit report and appraisal) may apply
and may be credited at closing.
*Refinancing or taking out a home equity loan or line of credit may increase
the total number of monthly payments and the total amount paid when compared to
your current situation.
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