Our team recently took a crash course in reverse mortgages. Turns out, there are many situations where a reverse mortgage makes sense for some homeowners or buyers.
You can use a reverse mortgage for purchasing a home and you can also obtain one to access equity you have in a home you already own.
For instance, with sufficient down payment, you can purchase a home with this type of loan and enjoy making no loan payments while you live in the home. You do continue to keep property tax, insurance and HOA fees current. Or, assuming you have enough equity, you can access your equity by refinancing or obtaining a new loan as a reverse mortgage and then choosing how you would like to receive your money.
Monthly fixed amounts or as needed draw down on a line of credit are popular choices, also with the benefit of not having to make loan payments yet keeping property tax, insurance and any HOA fees current.
This method of financing can make buying or keeping one’s current home possible for those with sufficient cash or equity, but without the income stream to qualify for a big loan payment. These types of loans do require the homeowner to live in the home, along with other requirements best suited for an expert to discuss.
Reverse mortgages are very special loans, not offered by most traditional lenders. We recommend working with an expert who can help you understand this type of loan and best assist in deciding which options are perfect for you. We enjoyed the expertise and professionalism of Mitchell Cooper of Mutual of Omaha. He’s very approachable, incredibly knowledgeable and has a very good way of describing the process in a very simple to understand way. You can reach Mitchell at 916-768-9150 or mcooper@mutualmortage.com.
You can also visit www.mutualreverse.com/
Sharon Currie is a Realtor (DRE #01357602) and operations manager for the Betsy Hamilton Real Estate Team. Contact her via email at sharon@betsyhamilton.com.