In this video, USA Reverse addresses how a reverse mortgage works. To learn more about reverse mortgages, and how they work, visit https://www.USAReverse.com today.
How Does a Reverse Mortgage Work
A reverse mortgage can be a good way to supplement your retirement income. Let’s look at how it works.
First, think of how your home mortgage works. As you make monthly payments, the amount of equity you have in the home increases.
This equity is money that is tied to the value of your home.
A reverse mortgage allows you to borrow that money in payments made back to you.
As you receive cash payments the equity in your home is slowly reduced. Also, your loan balance slowly increases over time.
The reverse mortgage loan is repaid when the homeowners or borrowers leave the home.
A reverse mortgage thus allows you to access the cash in your home, while you still own it and live in it.
There are some rules to reverse mortgages.
The borrower must be at least 62 years old.
The home must be your primary residence.
You must own your home and have substantial equity in it.
You must be able to keep up with property taxes, insurance, and homeowner’s insurance fees.
Many other rules also apply. Make sure you understand them all, before you apply.
If you’re interested in a reverse mortgage? Here are five simple steps on how to get started .
Step 1 – A USA Reverse licensed representative will provide you a no-obligation review.
Step 2 – You are required to get counsel from a certified HUD counselor.
Step 3 – A USA Reverse licensed representative will walk you through the entire application process.
Step 4 – During processing, your home is appraised, documents are signed, reviewed, and the loan approval depends on this process.
Step 5 – After closing the loan you begin to receive funds either in monthly installments, a lump sum payment or a line of credit. You can use the funds as you desire.
If you would like to learn more about reverse mortgages, call USA Reverse today.