What Is a Reverse Mortgage?
If you are well into retirement, chances are you have heard about reverse mortgages. You may even be asking yourself, “What is a reverse mortgage“? Well, a reverse mortgage is a type of mortgage in which a homeowner can borrow money against the value of his or her home. On a reverse mortgage loan, no repayment of the mortgage (principal or interest) is required until the borrower dies or the home is sold. In addition, after accounting for the initial mortgage amount, the rate at which interest accrues, the length of the loan and rate of home price appreciation, the transaction is structured so that the loan amount will not exceed the value of the home over the life of the loan.
HML Investments offers seniors the opportunity to acquire a reverse mortgage loan on their property. Some problems that a reverse mortgage can help to solve include a house payment that is causing havoc with the homeowners budget. This house payment may have been easy to handle when you were working, but now that you are retired it has become uncomfortable and is causing you to pull out from your savings more often. While most homeowners plan to have their houses paid off by the time they are 62, the reality is that many of them do not. A reverse mortgage used to way off an existing mortgage is one of the most popular uses for services that lenders provide. Another popular solution that reverse home mortgages offer is setting up a line of credit for future potential emergencies. Many recipients over the age of 62 are on a fixed income, and are one emergency away from bankruptcy. This line of credit offered by a reverse home mortgage could provide the safety net for seniors worried about their future.
If you are wondering what is a reverse home mortgage, contact the specialists at HML Investments today for more information regarding reverse mortgages and how you can get started on the application process today.