If you are a senior homeowner you’ve probably looked at the equity in your home and thought about accessing it. Whether you want to supplement your current income, pay off some of your debt or help one of your children or grandchildren to go to college or buy a home, MortgageDepot has a way for you to tap into the equity in your home without incurring an additional monthly payment. In fact, we can set it up to have the lender make monthly payments to you.
Taking advantage of the equity in your home
Reverse mortgages allow you to borrow up to the amount of the equity you have accumulated in your home. Unlike a traditional mortgage or home equity loan, reverse mortgages generally do not require repayment during your lifetime. The money you receive, whether in a lump sum or in monthly payments, is yours to keep without burdening yourself with a monthly payment.
Payment of the mortgage is deferred until you die or permanently live away from your home. If you own the property jointly with another person, the repayment is delayed until the last surviving owner moves away or dies.
If you pass away, your estate has six months to make arrangements to sell your home or otherwise repay the balance remaining on your reverse mortgage. Any additional equity in your home remaining after repayment of the reverse mortgage goes to your estate for distribution to your heirs. If the home sells for less than the balance due on the reverse mortgage, your estate is not responsible for the difference.
Eligibility for a reverse mortgage
Basic eligibility guidelines for a reverse mortgage include the following:
- All owners must be at least 62 years of age
- The property must be your primary residence
- Any liens or mortgages currently on the property must be satisfied before or at the closing
You are responsible for the payment of property taxes, insurance and maintenance on your home following the closing on the reverse mortgage.
Options for receiving your money from a reverse mortgage
You have the option to receive your money as monthly payments, a lump sum or as a line of credit. The amount you borrow depends upon four factors:
- Your age
- Current interest rates
- Value of your home as determined by an appraisal
- Payment method you choose
Speak to one of the professional mortgage loan officers at MortgageDepot for more information about reverse mortgage programs.