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How to Find the Best Reverse Mortgage Lender

U.S. News and World Report came out with a good article on reverse mortgage lender. Here’s a snippet:

If you own your home and are 62 or older, a reverse mortgage could allow you to access your home’s equity without selling or moving from your property. It’s important to understand how reverse mortgages work before signing up, as some types of reverse mortgages have downsides. This guide explains the fundamentals of reverse mortgages so you can decide whether a reverse mortgage is right for you.

How Does a Reverse Mortgage Work?

A reverse mortgage lets you borrow against your home’s equity so you receive cash without selling your home. You can choose to receive a lump-sum payout, regular payments over time, or set up a line of credit that allows you to take out money when you need it.

You do not need to pay back your reverse mortgage as long as you continue to live in your home, and you do not have to make any payments on the loan. However, you will need to keep up with other housing costs like property taxes, homeowners insurance, repairs and association dues.

When you die, the loan will be due. Your heirs can pay off the loan balance if they want to keep the property or they can let the lender keep the property to settle the debt

If you change your primary residence before passing away, you will need to repay the loan, which is usually done by selling the home. The lender considers that you changed your residence if you live outside your property for more than six months in a year for nonmedical reasons or 12 consecutive months for medical reasons.

The author goes into a good level of detail outlining various aspects of reverse mortgages for seniors to consider, like:

 These are all important points to consider. We take as much time as necessary with our clients to help them fully understand each of these aspects. In addition, we frequently meet with the adult children of our clients to help them understand the risks and benefits of a reverse mortgage.
To read the full article, here’s the link.
If you’d like to schedule a consultation, please give us a call or use the form on this website. We look forward to working with you!

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