What information on reverse mortgage do I need before I sign one?Answer:
Of course, you have to get as much information on reverse mortgage products as possible before you choose to sign for one.
Information You Need to Know about Reverse Mortgages
How much of your home value you are eligible to access depends mostly on your age and whether you have any outstanding mortgage balance on your property. The rule is that the older you are, the greater percentage of equity you could negotiate to get with the reverse mortgage lender. The starting age for getting a reverse mortgage is commonly 62.
Also, the outstanding balance of your mortgage, if small enough, can be paid off with the reverse mortgage, so you will become debt-free. And the more expensive your house, and the lower market rates are, the greater sum you could get with a reverse mortgage.
Depending on the type of home you have you may be eligible for a HUD reverse mortgage, or can contact a private reverse mortgage lender. Check whether your home qualifies for a HUD reverse mortgage. You will be FHA insured if you decide to go with HUD.
You should know that with a reverse mortgage you remain in possession of your home as long as you live in the home. Even if your reverse mortgage is outlived, no one should be able to force you out and no debt should be passed over to the estate or any heirs of yours. If a lender makes you a quote telling you a different story, simply quit. Do not become a victim of a reverse mortgage scam only because you didn't get enough information on reverse mortgage!
Your payments can arrive in a big one-time payment, as a line of credit to use until you exhaust it, as monthly payments scheduled for a number of months, or as payments for as long as you live in the house. These options will vary among lenders and greatly depend on your age and circumstances.
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