How is a reverse mortgage paid back?
If no monthly payments are required, how is the Reverse Mortgage paid back?
The loan is paid back when the homeowner moves out of the home, sells it or all the people on the title have passed away.
Does the homeowner retain ownership of the home with a reverse mortgage?
Yes. The homeowner retains ownership with a reverse mortgage and he/she can stay in the home for as long as he/she desires. In effect, the borrower is being paid to live at home. The program is regulated and insured by the Federal Housing Administration. By law, the homeowner can’t be forced to sell or move. And no payments are due on the Reverse Mortgage until the borrower no longer lives in the home.
Do you have a mortgage interest rate of 4.25% or more?
If you have a mortgage interest rate of 4.25% or higher call us for a refinance benefit analysis.
Save hundreds per month
Save thousands in interest
Payoff your mortgage early
Call Nick or Jennie Garofalo for more information!
(410) 414-7334/(888) 891-8353
American Mortgage Professionals/NMLS #188832
What can the proceeds of a reverse mortgage be used for?
How do you qualify for a Reverse Mortgage?
Applicants must be 62 or older and own a home with some equity. They don’t need any income to qualify. If there is currently a mortgage on the property, it can paid it off with the Reverse Mortgage. Applicants can even have bad credit, as long as there are no current government liens against their home.
What is a Reverse Mortgage?
A Reverse Mortgage is a special type of loan that allows a homeowner to convert a portion of the equity in his/her home to eliminate mortgage payments and even gain tax-free income without losing the title to the home. The accumulated equity derived from mortgage payments and appreciation can be paid to the borrower. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer uses the home as their principal residence. Most Reverse Mortgages are FHA-insured and guaranteed. A small percentage of available Reverse Mortgages offer built in private insurance.
Does Freddie Mac Own Your Loan?
If Freddie Mac owns your loan, you may be eligible for the HARP program. The HARP program has helped many homeowners refinance to market rates that have not been able to refinance in the past due to declining real estate values. Find out if Freddie Mac Owns Your Loan here:
USDA = 100% Financing
USDA Offers 100% Financing on Purchase and Refinance Loans
On a purchase loan, the loan amount can be increased above 100% to include closing costs if the appraised value exceeds the sales price.
USDA refinances are limited to existing USDA loans. Streamline refinances are available without appraisals and are limited to paying off the balance of the loan only and closing costs cannot be rolled in. Regular refinances allow for rolling in of closing costs based on the appraised value.
The property must be in a eligible zone and the household income must be at or below the limit for the area.
Give Nick or Jennie Garofalo a call at (410) 414-7334 for more information on USDA loans. Funding for refinances is exhausted for this fiscal year but is expected to be replenished for FY13 in October. Loan applications can still be submitted and underwritten but just cannot close until funding is available.
Does Fannie Mae Own Your Loan?
If Fannie Mae owns your loan, you may be eligible for the HARP program. The HARP program has helped many homeowners refinance to market rates that have not been able to refinance in the past due to declining real estate values. Find out if Fannie Mae Owns Your Loan here: http://www.knowyouroptions.com/loanlookup
Homeowners are Taking Advantage of Low Interest Rates to Shorten their Mortgage Terms
Many homeowners are refinancing and opting for shorter term, 15- and 20-year mortgages. Almost 30% of all refinances are shorter amortization products, up from just 5% in 2007. This is very good news because it means homeowners will be building equity at a much faster rate than if they opted for 30-year mortgages.
If you are interested in information on a shorter term mortgage, give us a call at (888) 891-8353 or fill out the form below and we will contact you.
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