Do you know what a reverse mortgage is? It is a loan option that is only available to senior citizens living in the US. Though only a small percentage of people avail this facility but it is rapidly growing popular among aged homeowners who want a hefty amount of cash flow to live the end days of their life luxuriously. Here we have identified three important features of a reverse mortgage for seniors that most homeowners have never heard of.
1. If you are a single borrower of the reverse mortgage but your spouse or kids are living with you, then after you pass away, your dependents will be forced to leave the house. This is because, under the reverse mortgage, the lender carries the first charge on the house. This is why if you are living with your spouse then you must purchase reverse mortgage for seniors jointly. This may reduce the monthly payments slightly, but at least you will have peace of mind.
2. You’ve probably heard that the person who has purchased the reverse mortgage only gets monthly payments for the rest of their life. Well, that’s true, but there is more to it. A borrower can also take out a huge amount in one single go. As a matter of fact, you can withdraw 60% of the total value of the loan extended to you within the initial 12 months. So, would you like to go to Thailand to celebrate your retirement?
3. The amount that you get is dependent on certain factors. Your age, the value of your home, the age of your spouse (in case you have purchased the reverse mortgage jointly), LIBOR, and outstanding mortgage payment (if any). All these factors are taken into account by the RM professionals in order to calculate the amount that you will be getting each month.
Longbridge financial is a lender that specializes in reverse mortgages for senior citizens and is approved by the Federal Housing Administration (FHA). It operates in 46 states and is committed to providing financial peace of mind to the elder generation. It is a member of NRMLA and is considered as the best reverse mortgage provider in New Jersey.