Are you a senior homeowner in Cleveland, TN? If your net worth is tied up by your home equity, you may benefit from the extra money that comes with a reverse mortgage. To get started or even just to learn more information about the reverse mortgage process, the smartest thing to do is research reliable Cleveland TN reverse mortgage brokers. As with a regular forward mortgage, the home is used as collateral.
Reverse Mortgage: How it Works
In a reverse mortgage, the lender makes payments to the borrower. The borrower chooses how they receive these payments, and interest is only paid on the amounts received. This interest amount is tied into the final payment, so there’s no upfront interest rate payment. The homeowner gets to keep the title to the home, and when the homeowner either moves or dies, the selling proceeds go back to the lender to pay off the amount of the mortgage. Because the IRS considers reverse mortgages as loan advances, they are not taxable. To find out if you’re eligible for a reverse mortgage, talk to one of our Cleveland TN reverse mortgage brokers at Mortgage South.
Payment Options With Cleveland TN Reverse Mortgage Brokers
When you set up your mortgage with one of our Cleveland TN reserve mortgage brokers, you’ll be presented with six options on how you can receive payment:
1. Lump Sum
You receive your payment all at once. This interest rate is fixed.
2. Set Monthly Payments
For as long as the borrower lives in the home, they’ll receive fixed monthly payments. The interest rate is adjustable.
3. Term Payments
The borrower receives monthly payments over a timespan of their choosing, such as 2 years of 5 years. The interest rate is adjustable.
4. Credit Line
The borrower can receive funds whenever they choose. The interest is determined by the amounts borrowed from the credit line.
5. Set Monthly Payments & Credit Line
For as long as the borrower lives in the home, they’ll receive fixed monthly payments. If more money is needed, they can draw from the credit lines whenever they choose.
6. Term Payments & Credit Line
The borrower receives monthly payments over a timespan of their choosing, such as 2 years or 5 years. If more money is needed, they can draw from the credit lines whenever they choose.