Reverse mortgage loans are unique from other loan options. If you are a person who is at least 62-year-old or more and has huge home equity, you can borrow against the value of your home and receive funds as a lump sum or a line of credit. This is unique as the homeowner won’t need to make any loan payments.
Instead, the complete home balance becomes payable when the borrower dies or sells the house. Federal regulations need lenders to structure the transaction, so the amount doesn’t surpass the house’s value. The borrower or his estate won’t be liable for the difference if the home’s value is lower than the home loan amount. In such a case, it is advisable to make use of a reverse mortgage calculator to anticipate the house’s value.
In a reverse mortgage, the homeowner doesn’t make any payments to the lender. Instead, the lender pays the homeowner. The homeowner pays interest on the received proceeds. The interest gets rolled into the loan balance, so there is nothing that the homeowner has to pay upfront. Moreover, the homeowner keeps the title to the house. The homeowner’s debt keeps on increasing, and home equity decreases over the loan’s life.
After the demise of the homeowner, the proceeds from the house’s sale repay the reverse mortgage’s principal, interest, fees, and mortgage insurance. In case the sale proceeds beyond the loan, the amount goes to the homeowner if he is alive or to his estate in case he has passed away.
HECM reverse mortgages have helped over a million seniors comfortably age in place. Learn more about how these products can help your customers fund the retirements they have worked so hard to achieve.
Fixed & Adjustable Rate Reverse Mortgages
A fixed rate reverse mortgage loan offers a single lump sum disbursement, and a consistent, fixed interest rate over the life of the loan. An adjustable rate reverse mortgage has an interest rate based on the one-month LIBOR index. Multiple payment plans are available to suit borrowers’ needs such as:
Designed to assist seniors to buy their next home, using a reverse mortgage:
With a Jumbo Reverse Mortgage, you will have access to these great features:
A reverse mortgage calculator helps you track your future loan balance. This way, it will be easier for you to track the amounts you’ll have to pay.
Old age is a difficult phase for people. In such a period, things become tougher when one doesn’t have money to fulfill the basic living necessities. If you are in this stage and your shelter is the only asset you have, Whittaker Gregory is here to help you with a unique loan option- the reverse mortgage loan. It is fit for old aged people who have a house as their sole asset. Now, the twist here is that taking out such a loan is equal to spending a large amount of your equity. Thus, a reverse mortgage calculator comes to help to make better decisions.