A reverse mortgage is a loan that enables senior homeowners 62 or older to borrow against the equity in their home, without having to sell the home, give up title, or take on a new monthly mortgage payment. The money received can be used for any purpose. The loan amount depends on the borrower’s age, current interest rates, and the value of the home. A reverse mortgage does not have to be repaid until the borrower sells or moves out of the home permanently, and the repayment amount cannot exceed the value of the home. After the loan is repaid, any remaining equity is distributed to the borrower or the borrower’s estate.  A borrower’s home does not have to be owned free and
clear to qualify for a reverse mortgage.

If you are considering a reverse mortgage in the near future, it may make sense to start the process sooner than later.  Interest rates are at historical lows and the scheduled lowering of the lending limit from $625,500 to $417,000 can mean significantly less money from your reverse mortgage if you wait until next year.

In most cases, there are no income or credit score requirements to qualify. You must be 62 or older.  At a time when it may be difficult to qualify for a conventional loan, a reverse mortgage can be a great solution.  If you would like a free customized quote on a reverse mortgage, please call David Chee, Branch Vice President and Certified Public Accountant at Security One Lending, 1-800-967-3575. NMLS ID#263222, DRE#01714617