For those who are borrowing, fees can play a significant role when it comes to how much you will be getting back from your home.
Currently, fees can be as high as 5% of your home’s total value. Also, everyone who qualifies for a Reverse Mortgage loan is required to pay a mortgage insurance premium fee of either 0.01% or 0.02%, upfront. Finally, consumers have an obligation to pay for the third party counseling in order to make sure that they fully comprehend and understand all of their available options before proceeding with a Reverse Mortgage. Applicable fees and fee amounts will also depend on your qualifying borrowers and their ages.
You can receive Reverse Mortgage payments in multiple ways,
which can include, but aren’t limited to:
A tenure payment will allow a borrower to receive equal monthly payments as long as at least one of the borrowers is still alive, and said the borrower is still occupying the property.
A term payment consists of equal monthly payments for an exact number of borrower specified months.
These unscheduled payments or installments are available at the time of the borrowers choosing. This payment method can be used until the entire Line of Credit has been exhausted.
This payout option is a combination of the ‘line of credit’ option as well as monthly payments for a fixed number of months.
The easiest, yet least recommended disbursement is a Single Disbursement Lump Sum, which means that the borrowers will receive the lump sum value in a single disbursement at the time of the mortgage closing.
For those who wish to avoid the pitfalls of engaging in such a complicated mortgage procedure, it is always advised that you seek out professional financial assistance. If you have any questions about your FHA-Insured Mortgage, or to see if you qualify for a Reverse Mortgage opportunity, contact your lender immediately. If you have spent your entire life putting your income into your home, do not deny yourself the opportunity to draw on it when you need to. Reverse Mortgages can help bring you out of a poor financial situation and increase your odds of keeping your home. For these reasons alone, seeing if you qualify for a Reverse Mortgage truly is a no risk procedure.
If you decide that a Reverse Mortgage may not be for you, there are other options to consider as well, including:
Just like a credit card, you can borrow up to a certain amount of money from your home’s equity, for the life of your loan, and withdraw funds whenever you need them. Since it is a revolving credit, you can continue borrowing money as you are paying off the principal balance.
With a refinance, you are restructuring your mortgage, in hopes of obtaining a lower interest rate, and changing your current mortgage loan terms. Reducing the interest expense is typically the most common goal in mortgage refinancing.
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