Seniors have at their disposal a valuable tool that can be incorporated into their retirement planning strategy – a reverse mortgage. Reverse mortgages offer many benefits for seniors looking to supplement their retirement income. What do they do exactly? These four reverse mortgage loan benefits can be obtained from a mortgage lender.
As long as you own your home, you remain the owner.
One of the most common misconceptions about reverse mortgages is that you are giving up ownership of your home to the mortgage lender. This is not true. In exchange for paying your property taxes and homeowner’s insurance, you retain ownership of your home. So you don’t have to worry about the ownership of your house.
You don’t need to make monthly mortgage payments.
The biggest benefit of reverse mortgages is that they make payments to you, so long as you keep your home. Traditional forward mortgages require you to pay monthly amounts. This is quite different. A reverse mortgage provides you with cash from the mortgage lender. Your home loan is repaid when you sell it, move to another residence, or when you make your last monthly payment. As long as borrowers maintain their home, pay property taxes, and carry homeowner’s insurance.
Having a home equity loan protects you from a downturn in the housing market.
A reverse mortgage loan is insured by the government. Greater security is provided by insurance. Government insurance will cover the difference if the loan amount exceeds the home’s value at sale. As a result, the loan will be repaid in full using only the proceeds of the sale.
You can select from several options for disbursement.
Every senior has different needs. Therefore, different disbursement options are available to cover different needs. In addition, you have the option to receive funds in full or in part, as a line of credit, in monthly installments, or as a mixture of these options. It is all up to you.
These are only a few of the many benefits of reverse mortgages. To understand Reverse Mortgages, you need to know their basics. For more information about how you can benefit from a reverse mortgage, talk to a mortgage lender Philadelphia. They will sit down with you and go over a customized financial strategy so that you can take advantage of all the benefits it has to offer.
How long are loan proceeds distributed?
You can choose how you want to access the loan proceeds and how long the loan will take. There are many options available for obtaining proceeds, including accessing them all at once, in monthly installments over a set period or while living in the home, or through a line of credit. Our home equity solutions professionals will walk you through your options to determine which is best for you.
How does a reverse mortgage work?
Reverse mortgages are unique financial tools in that they allow borrowers to access their home equity without being responsible for monthly mortgage payments. In retirement, you can access cash with a reverse mortgage to supplement your income.
How can I learn more about Reverse Mortgages by calling PierPoint Mortgage?
PierPoint Mortgage’s Reverse Mortgage Professionals undergo a comprehensive training program and licensing process. Also, our professionals are trained in customer service and how to connect with people. Due to this, our loan officers are thoroughly knowledgeable and strive to share as much of that knowledge with you as possible, so you can make an informed and educated decision. We recognize that your situation is unique and deserves the best reverse mortgage lender to provide you with personalized attention.
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