Lori Schramek, a Fairway Independent Mortgage Corporation loan officer, discusses what a reverse mortgage loan is and some questions you should consider before getting a reverse mortgage.
You may have heard about a lending option called a reverse mortgage loan for homeowners. If you are not familiar with it, a reverse mortgage is a loan for people at least 62 years old that converts equity into cash for many uses. Some of the possible benefits include:
What are the payment options from the proceeds of a reverse mortgage?
Some options include a lump sum payment, a line of credit, or monthly loan proceeds payment. You can switch between payment options at any time, and you could receive additional money at a later date if you limit the first year’s cash payout.
What if I already have a mortgage on my home?
There may still be a reverse mortgage option for you. After reviewing your unique situation, your reverse mortgage planner can let you know what your options are.
If you have questions about whether or not a reverse mortgage loan is right for you, it never hurts to do a little research or ask a local reverse mortgage planner. It’s important to know all the facts and features of a loan before approaching a lender or a bank. The important thing to know is a reverse mortgage isn’t used for just a loan of last resort but can also be used for proactive planning.
How much does it cost to obtain a reverse mortgage?
Fees vary depending upon the structure of the loan and your individual situation.
To learn more about reverse mortgages, call Lori Schramek today at 205-790-4103.
Copyright©2020 Fairway Independent Mortgage Corporation (“Fairway”) NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. The youngest borrower must be at least 62 years old. Monthly reverse mortgage advances may affect eligibility for some other programs. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity. Fairway Independent Mortgage Corporation NMLS Entity ID #2289 (http://nmlsconsumeraccess.org/entitydetails.aspx/company/2289).