Access Home Equity with Loan Lock Home LoansReverse Mortgages!

A reverse mortgage is a loan available to homeowners aged 62 or older, allowing them to convert a portion of their home equity into cash while retaining ownership of the property.

With a reverse mortgage, homeowners receive funds from the lender, either as a lump sum, monthly payments, or a line of credit, based on their home equity. Unlike traditional mortgages, borrowers do not make monthly payments; instead, the loan is repaid when the homeowner sells the property, moves out, or passes away.

To qualify for a reverse mortgage, homeowners must be at least 62 years old, own their home outright or have a low mortgage balance that can be paid off with the reverse mortgage proceeds, and live in the home as their primary residence.

Reverse mortgages can provide supplemental income during retirement, eliminate monthly mortgage payments, allow homeowners to access their home equity without selling their property, and provide financial flexibility for covering expenses or unexpected costs.

The loan amount for a reverse mortgage is based on factors such as the borrower's age, the appraised value of the home, current interest rates, and the chosen payout option (lump sum, monthly payments, or line of credit).

Fees for a reverse mortgage may include origination fees, mortgage insurance premiums, closing costs, appraisal fees, and servicing fees. These costs can vary depending on the lender and the specific terms of the loan.

If the homeowner moves out of the property permanently or passes away, the reverse mortgage loan becomes due. The borrower's heirs or estate have the option to repay the loan balance and keep the home or sell the property to settle the debt.

Yes, FHA requires reverse mortgage applicants to undergo counseling with a HUD-approved counselor to ensure they fully understand the loan terms, risks, and alternatives before proceeding with the loan application.