Some homeowners are concerned that, once they obtain a reverse mortgage, they must keep it forever. What happens if you decide to sell the home? Can you refinance the home and get out of the reverse mortgage? Or what if you get an inheritance, win the lottery or have other means and want to repay the reverse mortgage? Can you get one and make regular payments on it just like any other mortgage?
You are never stuck with the reverse mortgage. While it may not make sense to have it for only a short period of time, there is no prepayment penalty and no requirement to keep it for any period of time.
You are not restricted from selling your home - after all, you own it - the reverse mortgage is just a lien. Like any mortgage, the proceeds from the sale of the home would first pay off any existing balance owed and the rest of the money goes to the homeowner. Of course, you may also owe normal selling costs such as capital gains taxes and Realtor commissions.
If you want to pay off or pay down the reverse mortgage and continue living in the home, the situation is the same. You can pay off the balance that is owed and close the reverse mortgage. Or you can make regular payments on it like a traditional mortgage and keep it open. You are free to do as you wish. The benefit is that you are never required to make regular payments!
So how much would you owe on the reverse mortgage? Only the amount of money that you have used, plus the interest that has accrued. Contact a reverse mortgage lender or counselor and ask them to run different scenarios for you to see how much would be owed at any future point in time based upon your situation.
Reverse-Mortgage-Info.net is a division of FutureSafe Financial, specializing in California reverse mortgages and providing qualified reverse mortgages for seniors 62 years and older. Please contact Reverse-Mortgage-Info.net for more information and a free reverse mortgage quote.
Tags: reverse mortgage quote, reverse mortgages for seniors, reverse mortgages california
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