Reverse mortgages could be a great option for the right type of borrower. It is important to understand the advantages and risks in order to make an informed decision. This article provides advice on reverse mortgages for Las Vegas homes.
Definition of a Reverse Mortgage
A reverse mortgage is a specific type of home loan that enables you to get cash for the equity in your home. However, it differs from other types of equity lines in that home owners are not required to make monthly payments towards the loan. The mortgage is paid back when the homeowners no longer occupy the real estate as their principal residence or fail to meet the obligations of the loan. The amount paid back includes the cash taken out, interest on the loan, and other associated fees.
Eligibility for Reverse Mortgages
Not every home owner can qualify for a reverse mortgage. You must...
- Be age 62 or older.
- Own a home that you use as a primary residence.
- Have a qualifying property type.
- Have equity in the real estate.
- Complete a reverse mortgage counseling session.
How Much Can You Borrow?
The amount of a reverse mortgage depends on how old you are, the prevailing mortgage rates, the appraised value of the home, and FHA mortgage insurance limitations. Older borrowers may use a higher amount equity. The funds can be disbursed all at once, in monthly increments, or through a credit line.
Additional Advice On Reverse Mortgages For Las Vegas Homes
Reverse mortgage programs are offered by most mortgage companies. Up-front charges are high, so it should only be used when no other loan programs are feasible. Program specifics and interest rates can vary, so it would be smart to compare estimates from a few different providers. The advice on reverse mortgages for Las Vegas homes shown in this article is intended strictly as an overview. Requirements may change, so consult with reverse mortgage experts for advice relevant to your situation.