What Can a Reverse Mortgage Do For You?

Although sale of the home is not a requirement of a reverse mortgage, should you choose to sell your home, these specialty loans can be paid off with proceeds from the sale or with other resources such as savings, insurance, or even a new mortgage subject to new mortgage rates. Mortgage lenders can provide you with more information about repayment.

Two types of reverse mortgages are available to you. A fixed-rate reverse mortgage gives you one lump sum at a fixed rate that is not affected by market fluctuations. A variable-rate reverse mortgage allows you to receive one lump sum, monthly disbursements, and/or a line of credit that can be used as necessary. With a variable-rate reverse mortgage, your loan is usually subject to either monthly rate adjustments or annual rate adjustments.

Bear in mind also that reverse mortgages are subject to origination fees, third-party closing costs, mortgage insurance premiums, monthly servicing fees, and required U.S. Department of Housing and Urban Development (HUD) counseling service fees. The first four fees can be deducted from the loan proceeds, but the HUD fee cannot. In addition, only certain property types are eligible. Your lender can help you determine if you qualify for a reverse mortgage.

To find further information about home mortgages or useful tools like a mortgage refinancing calculator to estimate costs, please read through the rest of this website. Information is also available regarding mortgage rates. Refinance your mortgage, take out a second mortgage, or apply for a reverse mortgage—but first find the answers to your questions at Home Mortgage HQ.