In our lifetime, one of the biggest investments that we are ever going to make is our home. Whether you purchase a condominium, an apartment or an actual house, much time will be spent there and memories will be created. During our retirement years, one way of ensuring financial stability would be by accessing the equity built up in this investment with a reverse mortgage. However, before deciding if this particular type of loan is going to be right for you, there are few questions that can be answered by experienced reverse mortgage lenders.
What Is a Reverse Mortgage Loan?
A reverse mortgage loan is a unique loan available to seniors age 62 and older who own their home. A part of the home’s equity is converted into cash, which the borrower can use for a variety of purposes, with no limitations.
What Fees Are Associated with This Type of Loan?
Reverse mortgages, as any other loans, have fees associated with them; however, they may not be the same. Of course, you want to know up-front, before applying, what fees would be taken from your equity funds. Reverse mortgage lenders are there to help you understand what you will spend on fees.
Do Reverse Mortgages Have an Interest Rate?
Yes, reverse mortgages have an interest rate. While consulting with the lender, be sure to inquire about what the rate will be for your loan. Also, over the lifetime of your loan, how much will this amount to?
How Are the Funds Distributed?
After your reverse mortgage loan closes, it is important to know how you will receive your money. With reverse mortgages, there are different options you can choose for how you want your funds distributed. Choices include a lump sum, monthly installments, line of credit, or a combination of these. Reverse mortgage lenders will inform you also in which way your funds will be delivered, such as check or wire transfer.
After consulting with experienced reverse mortgage lenders, knowing if this type of loan is right for you should be easy. Browse the website for more information.