A Reverse Mortgage Is
A reverse Mortgage is a home LOAN, a reverse mortgage is NOT free money. It is a federally insured home loan, but the borrower is not obligated to make any mortgage payments. If you have any other questions regarding reverse mortgages, feel free to contact us at 562-881-9811 or email us at Miguel@Homecentralfinancial.com We are here to help. So if you have time, you can look for it here in the YouTube channel and you'll find that but briefly, just some things about what a reverse mortgages, a reverse mortgage is a home loan. Reverse Mortgage is not free money. Reverse Mortgage is a federally insured loan program. A mortgage a reverse mortgage is a program where the bar is not obligated to make any mortgage payments. They do however, are responsible for paying your home taxes and hazard insurance. But I guess the main point I wanted to get across is the reverse mortgage is a loan. A reverse mortgage is a mortgage. Just like the mortgage that most people purchase their home with is a loan just the way the most people borrow the money from a bank or lender to buy their home. That money is a loan to the homeowner. It's a mortgage to the homeowner and that's how they were able to buy the house. So a reverse mortgage is the same thing as the current loan that you have. It's a loan. It's a mortgage. Okay. That was the bottom or the point that I just wanted to make in its most simplest form. A reverse mortgage is just another type of loan.
A reverse mortgage loan, like a traditional mortgage, allows homeowners to borrow money using their home as security for the loan. Also like a traditional mortgage, when you take out a reverse mortgage loan, the title to your home remains in your name. However, unlike a traditional mortgage, with a reverse mortgage loan, borrowers don’t make monthly mortgage payments. The loan is repaid when the borrower no longer lives in the home. Interest and fees are added to the loan balance each month and the balance grows. With a reverse mortgage loan, homeowners are required to pay property taxes and homeowners insurance, use the property as their principal residence, and keep their house in good condition.
With a reverse mortgage loan, the amount the homeowner owes to the lender goes up–not down–over time. This is because interest and fees are added to the loan balance each month. As your loan balance increases, your home equity decreases.
A reverse mortgage loan is not free money. It is a loan where borrowed money + interest + fees each month = rising loan balance. The homeowners or their heirs will eventually have to pay back the loan, usually by selling the home.
If you have any more questions regarding reverse mortgages, feel free to contact us at 562-881-9811 or email us at Miguel@Homecentralfinancial.com
