After reaching the age of retirement, seniors often look for other ways to supplement their income. While there are a number of options to choose from, one of the most popular is a reverse mortgage. This allows seniors over the age of 62 to convert their home equity into cash so they can maintain their quality of life. Below, the professionals at Movement Mortgage in North Haven, CT, discuss what you need to know about obtaining a reverse mortgage.
What Is a Reverse Mortgage?
A reverse mortgage is a home equity loan reserved for seniors that does not require a monthly mortgage payment. The reason it is called a reverse mortgage is because instead of making payments to a lender, the lender makes payments to the borrower out of the equity. The borrower does not have to pay back the loan until the home is sold.
Who Is Eligible for a Reverse Mortgage?
To be eligible for a reverse mortgage, the youngest borrower on the title must be at least 62 years of age. They must also meet the financial eligibility criteria established by the HUD and own a home or have small monthly mortgage payments. If there is an existing mortgage on the home, it must be paid off using the money from the reverse mortgage loan.
What Are the Benefits of Reverse Mortgage?
One of the main benefits of a reverse mortgage is it can be used to pay off daily living and medical expenses, as well as home renovations and mortgages. It’s also an ideal situation for seniors who are active and able to live independently on their own for quite some time.
If you are seeking a reverse mortgage, turn to the licensed advisors at Movement Mortgage in North Haven, CT, for help. They will work with you to navigate your options so you can get approved and move on with the next stage of your life. Call them today at (203) 404-6847 to speak with a mortgage advisor, and visit them online for more information.