If you saw an ad for a reverse mortgage in Newport News, you may find yourself interested in learning about this type of mortgage. To start, a reverse mortgage is not available to every homeowner. While the terms may vary a little between companies that offer a reverse mortgage, you do need to be at least 55 years of age in order to qualify. In most cases, however, you need to be at least 62 to get a reverse mortgage.
A reverse mortgage is essentially a loan that you don’t have to repay unless you sell your home. This may seem like an odd thing – after all, how can a bank get money on an unpaid loan. Essentially, the bank is going to get their money back, plus interest, once you pass away. When you die, your home is sold and the bank is reimbursed for the loan plus interest. The rest of the money is then disbursed to your estate as stipulated in your will. If your family chooses, they can pay the loan off without selling your home, but that’s up to them.
The amount of money you receive will be determined by a couple of factors. First will be how much you owe on your home; the less you owe, the more money you can get. Secondly will be your age; the older you are the higher your loan amount will be. Lastly will be the age of your spouse. If your spouse is younger than you, this will lessen the amount of money you can receive. This is because the lender will not boot your spouse out after your death, they won’t collect on the loan until both of you pass away.
The ad for a Reverse Mortgage in Newport News may or may not have explained that a reverse mortgage is paid to you in monthly installments. Instead of a large loan all at once, you will receive monthly payments that will help to bolster your income. The great thing about this is that if you do pass away early on in the life of the loan, the repayment terms for your family will be quite small.
If you’re interested in getting a reverse mortgage, then you need to talk to a professional broker. Contact Reverse Mortgage Pro to learn more about the benefits of this type of loan for you.
