Top Reverse Mortgage Lenders

The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away, all remaining equity is inherited by their heirs.

You can choose to receive a lump sum pay-out or regular payments over a time that allows you to take out money when you need it. Although there are no monthly payments on a reverse mortgage, the repayments are deferred with interest and added every month, it is possible that the rising loan balance could eventually grow to exceed the value of the home particularly if the property market declines or if the borrower continues to live in the home for many years.

The borrower’s or their estate are not generally forced to repay any additional loan balance in excess of the value of the home.

There is a Home equity conversion mortgage which is a reverse mortgage that is a non -recourse loan which means the borrowers will not be responsible for repaying any loan balance that exceeds the net sales proceeds of their house.

There are other types of reverse mortgage arrangements including a Proprietary reverse mortgage, which are private loans that are backed by the companies that develop them, if your home is a high value you may get a bigger loan advance from the proprietary reverse mortgage.

A Single-purpose reverse mortgage allows a homeowner the chance to turn existing home equity into a steady income plan, as with any reverse mortgage lenders make payments to borrowers as an advance on their home equity.

People considering a reverse mortgage are generally required to speak with a counselor either face to face or by telephone., you should discuss the costs associated with each reverse mortgage program and discuss the payment options that best suit you.

 If you signed the loan paperwork and your spouse didn't in certain situations your spouse may continue to live in the home even after you die if he or she pays taxes and insurance and continues to maintain the property, but your spouse will stop getting money if you opted for monthly payments and not a lump sum since he or she wasn't part of the loan agreement.

Most people would like to leave some money to their children or grandchildren. Reverse mortgages can use up the equity in your home which will mean fewer assets for your heirs.

Lenders can charge fees to set up reverse mortgages and while you don't have to pay the majority of these fees until you leave your home or die and they are taken from your estate you may receive less money overall than if you had sold the home outright. Reverse mortgages often come with loan closing costs that are considerably greater than conventional home loans so consider how long you plan to stay in your home and how much equity you need to fund your retirement.