A reverse mortgage is a low-interest loan for senior homeowners that uses a home’s equity as collateral. The loan amount is a percentage of the home’s value determined by the age of the youngest homeowner. The loan does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 12 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is inherited by the estate. The estate is not liable if the home sells for less than the balance of the reverse mortgage.
Reverse Mortgage Home Loans
The reverse mortgage can be a great option for seniors. To be a good candidate for this type of mortgage, you must be at least 62 years of age along with having equity in the home. You must also not have any plans to move, be able to afford to maintain their home and not want to keep the home in the family when it is time for them to move. The money received from this type of loan will not affect social security payments or Medicare benefits, and it can be used to supplement the income, pay medical bills, pay for remodel or pay for travel expenses. When it comes to a reverse mortgage, you should expect to pay higher interest rates and fees. Our lenders can discuss all the specifics with you when you contact us today!
Importance of Choosing the Right Lender
When it comes to the best reverse mortgage lenders, it is in the eyes of the beholder. If the applicant wants attention and for their hand to be held throughout the entire process, then they would be best serviced with a local mortgage lender as they have offices within the community and can meet face to face. If the applicant does not care about personal attention, they can apply online or via a big named bank where they will have little to no face to face interaction and no hand holding.
With the local lender such as ours at NHL, we have a vested interest in their applicants since we live in the community and want you to receive the best reverse mortgage loan possible. These lenders will meet with the applicants face to face to ensure they feel comfortable throughout the entire process.
With the online or big named bank lenders, the applicant will be treated well but not given any personalized attention. The process may also take longer due to the number of applicants they work with.
Therefore, when it comes to finding the best possible reverse mortgage lenders, it is a matter of personal preference. With this being said, it is important they take the time to research the various options before making a final decision.
Secure your financial freedom with a reverse mortgage!
If you are close to retirement, you can ensure your financial freedom with a reverse mortgage. With this being said, you need to research it to ensure it is a good fit for you. After you have researched it, you will then need to find the best possible lender. A reverse mortgage is not a good solution for all homeowners. To qualify for this type of mortgage, you will need to meet the following requirements:
• Be at least 62 years of age
• Have equity in the home
• Be current on all property taxes
• Have zero liens on the property
The money received from the reverse mortgage can be used however the homeowner chooses. It can be used to pay medical bills, home improvements, traveling or supplementing income. The payments received will not affect Social Security benefits or Medicare benefits.
Once you have verified, you are a good candidate you will be one step closer to financial freedom with a reverse mortgage.
Find the Best Reverse Mortgage Company with NHL!
When it comes to choosing a reverse mortgage company, they are not all the same. To choose one who meets your requirements will take time. As you begin your research, it can quickly become overwhelming and not lose sight as to what is important. To not become overwhelmed, you should take a lot of notes. As you are looking at the various companies, you should also look at their customer feedback. If they have had any negative feedback, you should dig deeper to see what caused it. If it is a one-off complaint and everything else is positive, you should write off the comment.
Once you have reviewed the feedback, you can then contact the companies you like the best. During the meeting, they should answer your questions and address your concerns. If you feel as if they are not giving you their full attention, then it may behoove you to move onto the next one. When you have met with all of the companies, you should then be able to choose the best reverse mortgage company which you will find with NHL. You will then be one step closer to getting the reverse mortgage payments.
What Fees Can You Expect With a Reverse Mortgage?
If you are considering a reverse mortgage, you should know what costs to expect. The better prepared you, the fewer surprises you have. Each lender has their guideline they follow when it comes to fees they will charge. It is important to ask them up front what costs to expect. Although there are not any out of pocket expenses, the fees charged can affect the loan amount. The fees charged are also dependent on the type of loan, variable and fixed interest rates.
The first fee which can be expected would be the origination fee. This fee is charged up front to initiate the loan and can be financed as part of the mortgage.
The next fee would be the mortgage insurance premium. This is required as it guarantees the borrower will receive payments. It will also never expect them to owe more than the home is worth. This protects the borrower from the lender or if the property drops in value.
The last fee would be third party closing costs. This fee includes:
• Title searches
• Recording fees
• Credit checks
• State, local and federal mortgage taxes
Since each lender is different, the applicant will need to ask them what fees they can expect with their reverse mortgage. At NHL, our lenders will be upfront with you from the beginning.
How to Choose the Right Lender
If you are looking for the best way to choose your reverse mortgage lenders, you should consider these options.
First, you should only use a lender who is approved to work with reverse mortgages. Then you need to think if you want to meet with them face to face or over the phone. If you want to meet with them face to face, you would be best serviced with a local lender.
Once you have found a couple of lenders you like, you should then look for their customer feedback. If you see they have had negative feedback or complaints, you should consider not using them.
After you have done your initial research, you should then schedule a consultation meeting or a phone call. This will allow you to get a better feel for how they do business. If you think they are rushing you or not answering your questions, then you should forgo using them. You want to ensure you choose a lender who cares for your best interests like our lender’s will. At Nationwide Home Loans, our lenders will make you comfortable with the whole loan process and focus on your needs. Let our team help you secure your future today!