What is a Reverse Mortgage

What is a Reverse Mortgage - Image

Reverse Mortgage meaning.  FHA’s Reverse Mortgage is a special type of home loan that allows a homeowner convert a portion of equity into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence*. HUD’s reverse mortgage provides these benefits, and it is federally-insured as well. I have worked with homeowners all of the state of Alabama since early 2007. Please contact me for any information you need on pros and cons, purchase a home with Reverse Mortgage, age requirements, or any thing else on the federally insured Reverse Mortgage program.What’s the difference between a reverse mortgage and a bank home equity loan? How does a reverse mortgage work?

With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you.  The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. You don’t make payments, because the loan is not due as long as the house is your principal residence.* Like all homeowners, you still are required to pay your real estate taxes and other conventional payments like utilities, but with an FHA-insured HUD Reverse Mortgage, you cannot be foreclosed or forced to vacate your house because you “missed your mortgage payment.”Can the lender take my home away if I outlive the loan?
No! You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than your home’s value.*Will I still have an estate that I can leave to my heirs?
When you sell your home or no longer use it for your primary residence; you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by HUD’s reverse mortgage loan. This debt will never be passed along to the estate or heirs.

What is a Reverse Mortgage will also be explained to you in person because I explain the application as you sign and it tells the story. Scott Underwood “Alabama’s Reverse Guy”, and the crew at New South Reverse Mortgage Division are a consumer direct Alabama Reverse Mortgage lender offering FHA Reverse Mortgages DIRECTLY to you, the consumer-cutting out the middle man!

Utilizing a secure, state-of- the-art, technology we have created a network of appraisers and title companies across our footprint and in YOUR area that will make your mortgage experience easy.