Last time, we learned about who can qualify for a reverse mortgage (see Reverse Mortgages - Part 1). This time we are going to discuss payment options and how much money someone can get with a reverse mortgage.
~ You will never have to make another mortgage payment ~
When you finance your home with a reverse mortgage, as a borrower you will never have to make a mortgage payment while you live in your home. You will of course be required to pay your taxes and home owner's insurance.
There are several ways to receive the equity in your home through a reverse mortgage. You can ...
- Receive a lump sum after your new reverse mortgage has funded,
- Receive a monthly payment from the mortgage company, or
- Create a mix of the two above options, such as; receive a $5,000 lump sum after the loan funds, and use the rest of your equity to receive monthly payments from the mortgage company.
In the event were there isn't enough equity in a home to receive monthly payments or a lump sum, it is possible to finance (or refinance) the home simply so that a monthly payment will not have to be made. This alone can relieve a huge burden from a senior who is making payments from Social Security income or their pension. (We will talk about other income in a future article).
How much money you receive is determined by several factors;
- Your age at the time you choose a reverse mortgage,
- The amount of equity in your home,
- The value of your home, and finally
- Interest rates at the time.
Other factors could include what type of Reverse Mortgage you choose. The choice is often obvious when comparing your options.
We hope you find our future reverse mortgage posts informative as well. Stay tuned.
If you have additional questions or need immediate assistance, feel free to call Steve Kappre on his cell phone at 856-419-3561.
- Reverse Mortgages ~ Who is Eligible? - Part 1
- Reverse Mortgages ~ Payment Options - Part 2
- Reverse Mortgages ~ Expected Costs, Appraisals, and Title - Part 3
- Reverse Mortgages ~ Counseling - Part 4
- Reverse Mortgages ~ Is Reverse Mortgage Income Taxable? - Part 5
- Reverse Mortgages ~ What Happens When My Reverse Mortgage is Due? - Part 6
- Reverse Mortgages ~ Purchase a Home with a Reverse Mortgage - Part 7
Steve Kappre is a Certified Mortgage Planner with Treasury Mortgage, a subsidiary of Aurora Financial Group, serving all 50 states, focusing on Gloucester, Camden, and Salem County, NJ. Steve specializes in;
• All areas concerning First-Time buyers; First-Time Buyer mortgages, grants, down payment assistance, tax credits, police and fire loans, rehab loans for first time buyers, and more.
• Reverse Mortgages for seniors age 62 or older.
• Equity Management strategies for high-end homes and high net worth individuals.
Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com