What is a Reverse Mortgage?
For many people, the ultimate answer to the question "What is a Reverse Mortgage?" is: A reverse mortgage is a tool for providing financial freedom in retirement.
However, the more detailed answer to "What is a Reverse Mortgage?" is that it is a loan that uses your home equity as security that you do not need to repay so long as you continue to reside in your home and meet the other qualifications.
In order to qualify, you just need to be over 62 years old, to remain in the property while staying current on your homeowner's insurance payments, to make basic home repairs, and to pay the property taxes.
For more answers to your questions like "What is a Reverse Mortgage?" and to find out if a reverse mortgage is right for you, call us at Citizens Lending Group at (800) 443-4042 or use our online contact form.
What is a Reverse Mortgage? - An Answer in Plain English
A reverse mortgage is a federally-guaranteed and federally-regulated home equity loan or line of credit designed for seniors aged 62 and over. If you own your own home, you could qualify to receive lump sum payments, monthly payments, weekly payments, or biweekly payments based on your custom requirements. However, there are other benefits beyond the financial ones.
So what are other reverse mortgage benefits?
- A reverse mortgage can mean freedom to travel during your retirement years.
- It could mean the peace of mind that comes from retiring and aging in place on your own property.
- It can mean freedom from high-interest debt. Pay off your credit cards, car loans, and other higher interest debts by using a lump sum payment.
- It can allow you to downsize, relocate, or move closer to friends and family with a HECM for purchase.
Why are so many seniors asking "What is a reverse mortgage?"
Seniors across America are asking the question "What is a Reverse Mortgage?" to their financial advisors, friends, and family members at unprecedented rates. While you do your best to plan for retirement, unexpected expenses and costs often arise. This is where a reverse mortgage can help. One of the reasons why so many people ask about a reverse mortgage is because there are so many debates and misconceptions about it within the retirement community and among financial planners.
Ultimately, a reverse mortgage offers the promise of financial freedom in retirement free of the:
- Risk and capital requirements associated with investing in stocks, bonds, and other financial instruments
- The expense and complexity of moving into a nursing home or other adult living facility
- Monthly expenses of a conventional home equity loan
- ...and more
The Federal government guarantees reverse mortgages through the Federal Housing Administration (FHA) and Department of Housing and Urban Development (HUD). However, seniors of all income and asset levels can qualify for a reverse mortgage. The Federal guarantee also means that many seniors can qualify for a reverse mortgage even if they have bad credit.
As long as you are still current on property taxes and homeowner's insurance payments and are 62 years of age or older, you can qualify for a reverse mortgage.
Learn More About Reverse Mortgages
For more detailed answers to questions like "What is a Reverse Mortgage?" and "Is a Reverse Mortgage Right for Me?", call us at Citizens Lending Group at (800) 443-4042 or use our online contact form. We can provide detailed answers to your questions according to your personalized to your situation and based on the basic reverse mortgage requirements.