Reverse Mortgage Facts

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

  1. There three distinct types of reverse mortgages including: single purpose reverse mortgage, proprietary reverse mortgage, and federally insured reverse mortgage.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

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