Recent estimates state that as much as 30% of Americans own a home without any mortgage debt. The majority of these people are seniors who are either retired or facing retirement. Unfortunately, some of these people may be in danger of losing their home due to high property taxes, rising health costs or a major expense beyond their current means. It is for these reasons that the reverse mortgage was invented.
Types of Payouts
Reverse mortgages allow borrowers to choose how they will receive the money. They can receive monthly payments for a specific period of time. Or, they can get a major sum when the loan closes and get smaller monthly payments. Or, they can get all of the available money at once in a giant sum.
Getting a lump sum can work for people that are shrewd money managers. However, for people that may face future expenses of a large nature, a lump sum can be a problem. Once the money is spent, there is no way to get another loan.
Be Aware of Second Marriages
A reverse mortgage does not have to be repaid until the borrower passes away or moves out of the home. With second marriages, there could be another issue. If a person is single when they obtain a reverse mortgage, their name is the only one listed on the deed to the home. If they marry after the reverse mortgage and then pass away, it is possible that the surviving spouse can be legally removed from the home in order to sell it.
For additional FHA reverse mortgage information, please visit our Reverse Mortgage page!
Contact me below or apply online to determine if you qualify for a reverse mortgage!