· A reverse mortgage lets you borrow against your home’s equity so you get cash without selling your home. You can choose to receive a lump-sum payout, regular payments over time or a line of credit that allows you to take out money when you need it.
For example, if you’re 65 years old and have a house with an appraised value of $300,000, you can obtain a reverse mortgage if you still owe $140,000 on the original mortgage. Be advised, however, that after paying off the original mortgage, plus fees and other costs, you will only have about $7,500 left to borrow.
The reverse mortgage is a national program available to homeowners age 62 and older providing you access your home’s equity without having to make a monthly mortgage repayment. You must continue occupying your home as your primary residence and continue paying your property taxes and homeowners insurance.
· Good Times to Get a Reverse Mortgage. When You Need the Money – If you need money now and you want to stay in your own home, then now a reverse mortgage can be a good solution. A reverse mortgage helps borrowers in need in two key ways: The loan eliminates your existing mortgage (if you still have one).
There’s no simple formula, but here’s an example: A 90-year-old with a house worth $200,000 could get a reverse mortgage of 75 percent of the home’s value, or $150,000, while a 63-year-old.
reverse mortgage frequently asked questions.. older (and in some cases as young as 60 years old), can access the equity (cash) built up in their home. How can I use the money I get from a reverse mortgage and are there restrictions ?
harp loan program requirements HARP extended through 2018 – While the HARP program and the replacement streamlined refinance programs have similar requirements, they are targeted at different groups. The new programs will be for loans that originate on or.
With a fha-insured2 reverse mortgage loan you'll never repay more than the. To qualify, you must be age 62 or older and be the titleholder to your home.
Eligibility For a Reverse Mortgage. To be eligible for a HECM reverse mortgage, the Federal Housing Administration (FHA) requires that the youngest borrower on title is at least age 62. If the home is not owned free and clear, then any existing mortgage must be paid off using the proceeds from the reverse mortgage loan at the closing.
home equity line of credit vs second mortgage One of the most popular ways to leverage the value of your property is via a home equity line of credit. a second home or a real estate investment," said Mock. For example, a property purchase of.