A special loan for homeowners aged 55 and up.
Is this for me?
If you're 55 or over and have equity in your home.
What is it for?
Using home equity as a regular source of additional cash flow without having to repay the loan immediately.
How it works
A reverse mortgage works opposite to a traditional mortgage (hence the name). It’s designed to help homeowners near or after retirement to replace their income with the cash equity they’ve built up in their homes. Since this loan is strictly equity-based, there are no credit score requirements or income qualifications. Unlike any other mortgage on the market, you never make a monthly payment. Think of it like a loan that lets you borrow from the value of your home with no strings attached.
What you need to know
Keep these facts in mind as you evaluate:
- Reverse mortgage interest rates are slightly higher than traditional mortgage rates (this is what your lender is paid only once you pass away, not what you need to be concerned with while you’re living);
- As you spend your reverse mortgage cash, you are subsequently reducing the size of your estate;
- The maximum loan-to-value for a reverse mortgage is 55%, and you may or may not qualify for the full allowable amount (this is to protect you, your beneficiaries, the value of the property and your lender).
Where 8Twelve Fits In
Our mortgage experts are very familiar with reverse mortgages, but we also understand it can be a difficult loan to fully understand since it’s so unconventional. We’re here to guide you with the necessary questions and provide you with the advise to make your own decision. If we determine a reverse mortgage is the most suitable loan for you, our proprietary process is efficient and stress-free. You’ll be putting your home equity to good use in no time.