When a reverse mortgage makes sense
If you’re over the age of 55, need cash and are intending to stay in your home for the rest of your life, a reverse mortgage is an excellent financing option to consider. Allowing you to put your home equity to good use, a reverse mortgage increases your cash flow – without typical monthly mortgage payments.
How it works
Simply put, 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 prompt you with the necessary questions and provide you with the guidance you need to come to the right conclusions. 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.
What’s The Takeaway?
This Applies To You If You Are...
You’re over the age of 55, in need of cash, you don’t want to take on additional monthly payments, you have equity in your home and you have no interest in moving.
You Need It Because...
You require additional cash to live now that you’re approaching retirement or already retired. The equity in your home is available and you want to use it.
You Can Obtain A Reverse Mortgage By…
Clicking the link below to get started. Still have questions? No problem. Contact the 8Twelve mortgage team directly and we’ll be happy to answer them. Together, we can determine whether or not a reverse mortgage is the ideal loan for you. If it is, we secure it on your behalf quickly and seamlessly.
