A reverse mortgage is a special type of home loan that is only available for homeowners 62 years of age or older. With a reverse mortgage, instead of the homeowner mAking payments to the lender, the lender makes payments to the homeowner, and these payments are made on the collateral of the home.
These types of loans were created to allow retirees to turn the accumulated wealth in their home into cash to cover basic monthly living expenses and to pay for health care. However, there is no limit on how you decide to use the money — and many of our Patriot Home Mortgage clients use their reverse mortgage to fund things like home improvement projects or to help their children pay for college.
One of the features of a reverse mortgage is that you are not required to pay back the loan until the home is sold or vacated. You must remain current on property taxes and homeowners insurance, but otherwise the loan money is yours without any monthly payments. The loan is repaid when the borrower no longer lives in the home, and the loan amount is usually covered with the sale of the house. It is important to understand that a reverse mortgage is not free money. Like any mortgage, it is a loan where interest and fees accumulate each month, and the homeowners will eventually have to pay back the loan. This is usually done by selling the house.
If you think a reverse mortgage may be right for you, get in touch with a Patriot Home Mortgage professional today or stop by one of our offices in St. George or Mesquite. We’ll help you understand all of your financial options and find the one that best fits your needs. And if you’d like to learn more about reverse mortgages, take a look at this reverse mortgage infographic, which lays out what a reverse mortgage is, who qualifies, and the potential benefits.
Many retirees find themselves struggling with finances. After all, you no longer have regular income. If you own your home and are over 62, a reverse mortgage may be a good option for you to overcome financial challenges. You don’t have to pay taxes on the loan or make monthly mortgage payments. More so, a reverse mortgage allows you to tap into the equity of your home while still being able to live in it.
Patriot Home Mortgage Reverse Mortgages
We’re proud to help members of our St. George and Mesquite communities find the mortgage that fits their needs, including reverse mortgages. We’re here to help you find the right loan so that you can live better!
Along with offering reverse mortgages, we also provide services for conventional mortgages, VA loans, USDA loans, jumbo loans, and more. Follow our blog to learn more, and contact us today to get a free consultation and start the mortgage application process.