MortgageDepot has come up with a solution for homeowners of the baby-boomer generation to access the equity in a home without taking on the burden of a monthly mortgage payment. We work with members of the baby-boomer generation to take advantage of the many benefits offered by reverse mortgages. Our loan officers have all of the information a senior homeowner needs, but here is a brief introduction to our reverse mortgage program.
Borrowing without incurring a monthly mortgage payment
A reverse mortgage allows borrowers receive tax-free payments each month from a lender based upon the equity in a home. The lenders we work with at MortgageDepot determine the equity available in a home and calculate how much of it can be made available to the homeowner through one of the following methods:
- A tenure option offers equal monthly payments for life as long as the borrower continues to occupy the home as a primary residence.
- Borrowers may elect to receive a monthly income for a fixed term instead of for life.
- A line of credit option is available for borrowers who prefer having the ability to access the available equity in the home only when they need it.
- Borrowers may elect to take the available equity in the form of lump-sum payment.
Borrowers working with our loan officers can combine the available payment options to develop one that meets a specific need.
Eligibility and repayment guidelines
All borrowers must be at least 62 years of age to qualify for a MortgageDepot reverse mortgage. Unlike other types of mortgages, reverse mortgages do not have income or credit requirements for eligibility. The primary criteria for eligibility are the age of the borrower and the amount of equity in the home. Borrowers can elect to pay title insurance, credit reports, appraisal fee and other costs related to the loan from the proceeds of the reverse mortgage.
Repayment of a reverse mortgage usually occurs when the borrowers no long occupy the home as a primary residence. The surviving spouse of a deceased borrower does not have to repay the reverse mortgage until the home is no longer occupied as a primary residence.
Benefits of a reverse mortgage
Reverse mortgages offer many benefits for senior homeowners, including:
- The ability to remain in the home while receiving supplemental income each month.
- No repayment of the loan as long as the home remains occupied as the primary residence of the borrower or a surviving spouse.
- The equity in the home becomes available for use by the borrowers for any purpose they choose.
- Title to the home remains in the name of the borrowers.
Borrowers receive a tax-free payment while maintaining full control over their home. Any equity in excess of the amount of the reverse mortgage belongs to the borrowers or their heirs upon sale of the property.
MortgageDepot is a mortgage broker company, so our loan officers can help borrowers find the best lender for their reverse mortgage needs.