If you are a home owner or getting ready to be a home owner and you know that money is tight especially with the economy the way it is, it is important to think of all your financial options. There are all kinds of options, borrowing money from friends and family, loans, and mortgages. You may be wondering what type of loan is best for you though because there are so many. If you are a home owner and have been one for quite awhile, reverse mortgage may often you many benefits. This way you can make sure your home and family is well taken care of. Here are some benefits of these mortgages to help get the process started for you.
Ask your Greenwich real estate agent for advice
If you are an older home owner, planning to buy or even sell your home, it’s a good idea to ask your agent about the types of mortgages that would best benefit you. They have experience seeing all different buyers and sellers and are a great resource.
Reverse mortgages mean the lender pays you
If you are the borrower with a reverse mortgage the lender owes you payments instead of the other way around. These payments can be made as a lump sum, monthly, periodically, or in any combination of those.
Older home owners with equity benefit from these mortgages
If you are 62 or older and have equity in your home you may benefit more from reverse mortgages. Your existing home could be paid off, FICO scores do not apply and credit history does not apply.
Costs vary but are not too bad as with other mortgages
As with any mortgage a borrower has some fees to pay but these fees are not as pay or as high as some. Some fees may include: insurance premiums, monthly lender fees, application fee, and closing costs.
The longer you have owned a home the more you may be able to borrow.
How much a person can borrow with reserve mortgages depends on how much equity is in their home, the type of program you choose, and the age of the borrower. So, these mortgages may benefit older home owners or home buyers with more equity.
Knowing these benefits about reverse mortgages can help you as a home owner or buyer; decide which type of mortgage is best for you. This way you can know that you are safe and secure in your home and have fewer worries in the future.