Reverse Mortgage Lender Serving Chattanooga, TN
The reverse mortgage is not a new concept offered by loan companies. Reverse mortgages have been around since the 1960s. The program became federally insured and regulated in 1987. the reverse mortgage industry has seen an explosion of interest over the last few years. As Baby Boomers reach the age of 62 and start to retire, they’ve come to realize that the reverse mortgage is a valuable financial tool.
However, there is a lot of misinformation and confusion. And there are even reverse mortgage pitfalls. We at Mortgage South are here to help you get the facts – and make the right decision for your family.
What is a Reverse Mortgage?
Known as a Home Equity Conversion Mortgage (HECM Reverse Mortgage), a reverse mortgage is a loan taken out against your home. It’s available to homeowners 62 and older. It allows access to the equity you’ve built in your home to supplement your income and maintain your lifestyle in retirement.
This loan is like few others you’ve experienced. Rather than you paying the bank every month, the bank pays you. It turns the equity you’ve built in your home into cash. Depending on the terms you select, you can receive monthly payments, a lump sum, or another payment option.
You still own your home throughout the entirety of the loan, and the loan does not have to be paid back until you reach a “maturity event” (see below). This is a great way to manage your income throughout retirement, and Mortgage South is here to help. Be sure to check out the Key Features of a Reverse Mortgage below, and get in touch with us today to start the process.
Key Reverse Mortgage Features
- Reverse mortgages are available to senior homeowners (age 62 and up) with sufficient equity.
- All borrowers on the title must be age 62 or above.
- The amount of the loan will depend on the value of the home, the age of the homeowner, and current interest rates.
- There are less stringent income qualifications.
- There are no monthly mortgage payments.
- There is no prepayment penalty.
- There are minimal credit verification requirements.
- There are no title seasoning requirements.
- The borrower must be on the property title.
- The property must be the borrower’s primary residence.
- Repayment is only required at a maturity event: death, property sale, relocation, or failure to pay property taxes, homeowners insurance and undertake basic maintenance of the property.
- A reverse mortgage is non-recourse: you or your estate cannot owe more than the home’s appraised value at the time of repayment.