A reverse mortgage is a relatively new financial tool that
allows people who have worked hard to build equity in their primary
residence the opportunity to turn that equity into cash, without the
obligation of paying a mortgage payment for as long as they live in the home.
You can think of it this way
as well...
You have spent many years paying money to a bank to build up the amount of
ownership (equity) in your home. A reverse mortgage is the bank paying
you monies and taking a little of that equity back.
If you have significant
ownership (equity) in your home and decide you would like more money to
enhance your lifestyle, tapping into your biggest asset makes sense,
especially if you are guaranteed to be able to stay in your home for as long as
you choose.
Once you make the decision
to go forward,
Homestar Direct will help you identify how much you can borrow based on your
home's value and your age.
You close on a reverse
mortgage and now you have instant access to cash. You still own your
home and you continue to live in it.
Once you decide to move out of
your home, (or you pass away), then your reverse mortgage becomes due.
However, in cases where there are 2 borrowers, the remaining borrower
continues to live in the home and the mortgage comes due when the second
borrower no longer lives in the home. You
(or your heirs) will never owe more than the value of your home.
Once the reverse mortgage
comes due, if the home is sold to pay
off the reverse mortgage you (or your heirs) keep any equity that remains in
the home. For example if you owe $100,000 on your reverse mortgage and
your home sells for $450,000 - you keep the difference - $350,000.
Do you have additional questions? We are sure you do. We are focused on
educating you so you know all the ins and outs of a reverse mortgage before
getting a loan. We will take the time
to answer all those questions. We look forward to hearing from you.
1-800-203-1140
Visit our Frequently Asked Reverse
Mortgage Questions Page
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