As housing prices rise, many seniors believe they can’t afford to buy a new house that’s better suited to their new lifestyle. A reverse mortgage can be a good option for someone over 62 and requires no monthly payments. Reverse mortgage funds, which are only available on a primary residence, are structured as a lump sum or line of credit that can be accessed on an as-needed basis.
People who learn about this type of mortgage are happy to buy their retirement home in that golf community they’ve been dreaming of without having to make monthly mortgage payments. Borrowers can usually borrow about 60% of the house value, so the down payment is usually 30 – 40% instead of the standard 20%. This could be difficult for first-time home buyers, but people over the age of 62 typically have the funds to make a larger down payment.
Origin Title has been working with clients who choose reverse mortgages over 15 years now. We know how reverse mortgages work, can clear title issues and know the requirements for a reverse mortgages closing.