What is a reverse mortgage? For the answer to this question you can choose to watch the video below or if you're a reader, just keep reading.
Every day on TV we see celebrities pitching reverse mortgages as the answer to living the perfect retirement. It sounds pretty good, maybe even too good. There has to be a catch, right?
In my experience, if something sounds to good to be true, it probably is. But I also believe that if I can learn the facts about a product, how it’s used, how it works and how the seller makes their money from it, then I can use my own “common sense” to decide if I want to do business with that person.
So… What is a Reverse Mortgage exactly? So…. what exactly is a reverse mortgage? A reverse mortgage is really just a mortgage. Like any other mortgage you would get. The bank loans you money, charges interest and wants to get paid back. The major difference between a traditional mortgage and a reverse mortgage is that the reverse does not require ANY monthly mortgage payments. In fact you al long as you live in the home, keep it insured and maintained, and remain current on your property taxes and HOA if you have it, you NEVER have to make a mortgage payment.
Why would the bank do that? You know they have to make money - so how does a mortgage without payments make sens for them? To understand that you need to know “How a Reverse Mortgage works, the second video in this series> If you enjoyed this video and learned something please share it with your friends and family. If you would like to find out how much you or your family member would qualify for and recieve a personalized reverse mortgage quote please click on the link HERE and complete the easy form. You’ll have your numbers in no time at all!
By Deborah Nance
Your Local Southern California Reverse Mortgage Professional
Click the Learn More Button below to email me a question.
iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin.
Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.