There's a wide range of home loans available to homeowners and would be homeowners. However, there's nothing quite like the reverse mortgage Fort Lauderdale. What is it, and why should you consider one? Here's everything you need to know before you apply for one.
What Is A Reverse Mortgage?
A reverse mortgage is different than any other home loan, as it's designed for those who aren't looking to move from their home. In fact, to get a reverse mortgage, you must ensure that you're going to stay in your current home for the duration of the loan.
If you've ever heard of 'unlocking the value of your home,' this is how you do it. When you take out a reverse mortgage, you borrow the value of your home and receive that money while you're still living in your property. The amount will need to be paid back in full if you move out, or when all those named on the mortgage pass away.
Unlike a regular mortgage, where the borrower makes payments to the lender, the lender will instead pay the money to the borrower. Reverse mortgages were originally conceived as a way for the elderly to bring in money when they have limited means.
Who's Eligible for A Reverse Mortgage?
To be eligible for a reverse mortgage, you'll need to be over 62 years old and own your home. Other than that, you won't need to meet any more requirements. If this fits you, then you can speak to a reverse mortgage company in Fort Lauderdale to see what your options are. You may be surprised at what they can offer you.
Why Get A Reverse Mortgage?
There are plenty of reasons why you should consider getting a reverse mortgage. If you fit the criteria, it can open up a lot of capital for you, to do with as you wish. There are no limitations on what you can spend the money on, but options include:
- General living costs: If you have limited means but have wealth accumulated in your home, this is often the best option. You can bring in cash, so you don't have to worry about money during your retirement.
- Medical costs: Many people take out a reverse mortgage as it can help cover the medical costs they incur during their retirement years. These can rack up quite quickly, so having a way to pay them off can take a lot of worry off you and your family.
- Travel: If you want to enjoy your retirement years, then why not use the money in your home to travel the world? If you've never been able to do this before, thanks to child rearing or other commitments, now's the time to do it. Use that money to have the experiences you've always wanted to have.
What You Need to Know
Does a reverse mortgage sound right for you? Then here's what you'll need to know before you apply for one.
The home used as the basis of your loan must be your primary home, so you'll need to prove that you live there most of the year. Vacation or other homes are not eligible.
If you take out a reverse mortgage, it must be the primary lien on your home. If there is a remaining balance on your original mortgage, you must first use your reverse mortgage to pay it off. To be able to use a reverse mortgage, you'll need to keep up to date on all other fees on your home. This includes taxes, estate fees, and condominium fees among any others that you may be required to pay.
You'll also be required to keep up on any necessary repairs in the home for the duration of the loan, to keep it in good condition.
Apply for Your Loan Today
Now that you have all the right information in hand, it's time to talk to reverse mortgage lenders in Fort Lauderdale. Here at NHL Lending, we're dedicated to helping you find the best deal possible. Come in or give us a call, and we can start you on the right path.