As a senior homeowner, you’ll have various costs that you need to keep up with. If you’re retired, then you could use some extra cash to help you with these costs. A reverse mortgage can be just the thing to help you out, and you may already be eligible. Here’s how a Hollywood Reverse Mortgage can be right for you.
What Is A Reverse Mortgage?
A reverse mortgage is a type of loan available to senior homeowners. It get its name from the fact the loan is based on your property. The amount you can get is dependent on the value of your home. If you have equity in your home, it’s a good way to borrow money.
The loan does not need to be repaid until the last remaining homeowner moves out of the home or passes away. When this happens, the estate has 12 months to pay the balance of the loan, or to sell the home.
Why Take Out A Reverse Mortgage?
If you’re a senior looking into Hollywood Home Loans, then you’ll get a good deal with a reverse mortgage. They’re ideal as they use your existing equity in your home. You won’t have to worry about paying back the loan until the home is no longer in your possession, so you can get on with enjoying your retirement.
These kinds of loans are perfect for people who want to stay in their own homes, homes that they may have been living in for decades. You’ve raised your children there and your grandchildren visit you there. You don’t want to move out just because you’re retired, why should you when you’ve created so many memories there? A reverse mortgage allows you to stay where you are, while enjoying your home to its fullest.
A reverse mortgage is also a good option if you’re looking at paying medical bills. Many seniors need to get medical care during their retirement years, and the costs add up fast. A reverse mortgage can help alleviate that pressure, so you can get the care you need, when you need it.
Are You Eligible?
If this sounds good to you, you’ll need to know if you’re eligible. You can get a reverse mortgage if you’re:
- Aged 62 or over
- Own your own home
- Have equity in your home
- Be current on all your property taxes
- Have zero liens on the property
You’ll also need to stay in the property for the duration of the loan, and not want to keep the property in your family when you leave.
The Fees You Should Expect
As with any kind of loan, you’ll need to expect some fees when you take out a reverse mortgage. There are three main fees you’ll need to pay:
- Origination fee: This fee is paid to initiate the loan. It can be financed as part of the loan, if you so wish.
- Mortgage insurance premium: This payment protects you as the borrower in case circumstances change. If your home drops in value or anything else happens, this will ensure that you still get the payments you agreed upon with the lender.
- Third party closing costs: These fees will encompass a few different costs, such as title searches, appraisals, and inspections, before the loan can be completed.
How To Find The Right Lender For You
If you’re eligible and think a reverse mortgage is right for you, then you’ll need to find a lender who’s able to give you the best service. There are a lot of lenders out there, so you’re going to need to do your research. If you’re feeling confident, and don’t need much help in completing a loan, then you can go to a larger lender to get your loan. If you need some more help during the process though, a smaller, local lender will be the people for you.
Here at Nationwide Home Loans, we can walk you through the process of getting a reverse mortgage, and give you a competitive rate. As a local lender, we want to ensure you’re getting the best deal, so come talk to us if you think a reverse mortgage is right for you.
Reverse mortgages are a great option for many senior homeowners, so come talk to us today about getting a loan. You can release the equity in your home and use that cash for the things that really matter. Come talk to us today, and we’ll help you find a rate that’s right for you.