If you don’t know all the facts regarding a reverse mortgage you may end up making a bad financial decision. With so many reverse mortgage facts and myths you need to know exactly what you are doing before making a final decision.
Important Reverse Mortgage Facts To Consider
- There three distinct types of reverse mortgages including: single purpose reverse mortgage, proprietary reverse mortgage, and federally insured reverse mortgage.
- Not all reverse mortgage lenders are the same. Some people believe that one reverse mortgage is as good as the next one – this is not true. Just like a traditional mortgage, make sure you shop around and receive quotes from at least three lenders.
- There are no income requirements. Unlike a traditional mortgage, there are not usually income requirements related to a reverse mortgage. Since the sale of the property acts as the repayment, it does not matter how much money the owner earns.
- You can receive the proceeds of your reverse mortgage in a number of different ways. The most common options include: personal credit line, installments, or a lump sum payment.
- There is a minimum age requirement. In order to qualify for a reverse mortgage you need to be 62 years of age or older.
These five reverse mortgage facts should give you a better idea of what to expect.
The bottom line is simple: a reverse mortgage is not the right decision for everybody. Based on the facts above, you should have a better idea of whether or not this is a financial move that will benefit you now and in the future.
If you have any questions regarding these reverse mortgage facts, contact a qualified, reputable lender for further advice.