If you're a homeowner with an accessory dwelling unit (ADU) on your property, you may…
What is a Reverse Mortgage?
A reverse mortgage may be right for you.
Reverse mortgages are becoming an increasingly popular option for retirees looking to access their home equity without having to make any monthly payments. Reverse mortgages allow you to access the equity you’ve built up in your home and use it to supplement your income or pay for medical expenses, home improvements, or other necessary expenses. With a reverse mortgage, you’ll still own your home and have the flexibility to use the funds as you need. Additionally, you won’t have to worry about your credit score or income level when applying for a reverse mortgage.
There are three main types of reverse mortgages:
- Lump Sum: this is where you remove your monthly mortgage payment obligation and you are able to pull equity out of your house at closing.
- Line of Credit: this is where you remove your monthly mortgage payment obligation and you are given access to a line of credit that can be used at your discretion.
- Tenure: this is where you remove your monthly mortgage payment obligation and receive a fixed monthly payment.
If you’re thinking about applying for a reverse mortgage, it’s important to understand the various requirements and considerations that come with this type of loan. You should also be aware of the risks associated with taking out a reverse mortgage and make sure you’re comfortable with the terms and conditions of the loan. It’s also important to speak with our mortgage loan originators to discuss your options and determine if a reverse mortgage is right for you.
Overall, reverse mortgages can be a great option for retirees looking to access their home equity without having to make monthly payments.