A reverse mortgage is a lending product for senior homeowners with significant equity. It is an especially flexible type of loan that you can use for any purpose you want. In this post, we will answer some questions you may have about reverse mortgages.
- Q: How do you receive reverse mortgage funds?
- A: There are three main options for how to receive reverse mortgage funds. You can receive them in a lump sum, in monthly installments, or as a line of credit. You get to choose whichever works best for you.
- Q: Are you eligible for a reverse mortgage?
- A: At least one borrower must be age 62 or older to qualify for a reverse mortgage. You must have sufficient equity in a qualifying property that serves as your primary residence, and must be current on all home maintenance payments (and able to stay current).
- Q: What happens if you have a younger spouse?
- A: If a spouse is younger than 62, they can be listed as an eligible non-borrowing spouse on the reverse mortgage. The benefit of being listed as such is that if the older spouse dies, the younger spouse may qualify for a loan repayment deferment. If they are not listed, the loan may come due immediately.
- Q: Will you be able to stay in your home?
- A: Yes, you can remain in the home for as long as you want, or until a maturity event occurs (such as the death of the last borrower, or the sale of the home). Many people who take out reverse mortgages opt to stay in their homes for the rest of their lives.
Apply for a Reverse Mortgage
You should now have a stronger understanding of reverse mortgages and how they work. You can find additional answers in Frequently Asked Questions About Reverse Mortgages, Part 2.
To ask us the rest of your reverse mortgage questions, or to get help applying for a reverse mortgage, please call (248) 788-0800. We work with senior homeowners in Farmington Hills, throughout Michigan, and in 14 other states.
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