Many times people fear that they will lose control of their home if they take out a reverse mortgage loan. If you take out a reverse mortgage loan, the lender/bank does not own your home, nor do they have control over it. In fact, the title to the home is still in your name. The lender/bank simply has a lien against the home. As long as you keep up with your obligations on the loan (living in the home, maintaining the home, paying property taxes, homeowner’s insurance and any other property related charges), you will be able to remain in the home and retain control over it.
So, does that mean you can sell it? Of course! The sale of a home which has a reverse mortgage loan on it would be handled in a similar fashion as any other home sale. You would list the home for sale and repay what is due on the reverse mortgage loan when you close on that sale. One thing to keep in mind, however, is the fact that the reverse mortgage loan is a negative amortization loan. This means that the loan balance will rise over the years rather than go down. (As a side note, you can choose to make payments on the reverse mortgage loan to help keep the balance in check). So, the longer you stay in the house without paying anything towards the loan, the higher your payoff will be when you sell the home (in other words, you will receive less equity from the sale). Keep this in mind when deciding whether or not a reverse mortgage loan makes sense for you. When you know your options, you can make better choices for a strong financial future.
Order our free reverse mortgage loan guide to get more information, or call 855-469-7383, Ext. 802 to speak with a loan specialist.
Since there is no monthly payment required for the reverse mortgage loan (other than property taxes, homeowner’s insurance and other property charges), the loan does not appear on your credit report and it is not reported by the credit bureaus.
If you have any questions about this, be sure to call! 855-469-7383, Ext. 802.
Be sure to sign up for our free reverse mortgage loan guide. The guide tells you everything you need to know about the reverse mortgage loan.
A reverse mortgage is a loan that allows seniors (age 62 and above) to borrow a portion of their home equity without having to make a monthly mortgage payment. Obviously, in order for the lender to allow seniors to borrow a portion of their equity, the senior must first have equity to borrow.
Although the lender will not require a monthly mortgage payment, the homeowner still has obligations he or she must meet in order to keep their reverse mortgage loan in good standing. Those obligations are listed below:
The reverse mortgage loan becomes due when the last surviving borrower dies (or no longer resides in the home), the home is sold, or one of the above obligations has not been met.
If you have questions about this, please call us! 855-469-7383, Ext. 802
Be sure to sign up for our free reverse mortgage loan guide to learn all of the facts.