A reverse mortgage is simply a loan that is given to homeowners who are above the age of 62 years old. This loan allows them to convert some of their equity into cash from their homes. This loan was simply initiated to assist elders who are now retired and have limited income to cover some of their basic monthly living expenses and also pay for their health care. This type of mortgage is known as a reverse mortgage because instead of the borrower paying the lender every month, the lender makes payments to the borrower each month instead.
Once the payments have been made to the borrower, they don’t have to pay back the loan until their home is sold or they have vacated. As long as they are currently living in that house, they don’t have to make monthly payments for the loan balance. However, the borrower will have to pay the property taxes, insurance, and association dues if required.
How Can a Reverse Mortgage Specialist Help You?
Reverse mortgage specialists can answer any questions for you that you may not understand about the procedure and payments. These reverse mortgage specialists will help you out when you need to decide whether a reverse mortgage is right for you or not. Reverse mortgage specialist will explain to you the fees structure and how you will have to pay. They will tell you that you will need to pay for closing costs like the origination fees, mortgage insurances and also their service fee. Most of the time, depending on different reverse mortgage specialists; you can add all these costs into the loan itself and pay it all at once. This will then add into a number of your equity payments that you will get over the reverse mortgage.