Seniors are given a way to make full use of their home equity through a reverse mortgage so they can finance their retirement. With many people living a lot longer, a reverse mortgage loan can serve as an income in case their retirement savings can not cover all of their living expenses.
A reverse mortgage, which is also known as Home Equity Conversion Mortgages or HECM, lets seniors sell a part of the home equity so they can get cash. Through this, they do not have to apply for a home equity loan or even sell the home. Unlike the other kinds of loans available today, a reverse mortgage will not require you to make monthly payments to your lender. Instead, the lender will be the one to give you money every month. You don’t have to pay the money back as long as you continue to live in your house. However, at some point, you will eventually have to repay the loan. If you decide to sell or move out of your primary residence or when you die, the reverse mortgage loan should be paid back.
If you are thinking of getting a reverse mortgage loan, you must be at least 62 years old and the house that you are currently living in should be your primary residence. Reverse mortgages come in three types. These are the private reverse mortgages, federally-insured reverse mortgage, and the single purpose reverse mortgages.
Let us discuss the first one. The single purpose reverse mortgage Myrtle Beach is designed for one specific purpose only as specified by a nonprofit lender or the government. These may include property taxes, home repairs, or home improvements. This kind of reverse mortgage loan is suitable for people who have low to moderate incomes.
The next one is the federally-insured reverse mortgage, which is also referred to as the Home Equity Conversion Mortgages. It is supported by the US Department of Housing and Urban Development or HUD. Since HECM’s are associated with high costs, this kind of loan is ideal for people who plan to stay in their homes for a very long time. If you want to get this kind of reverse mortgage, the first thing you have to do is consult a housing counseling agency that’s been approved by the federal government. You have to talk to a counselor who will explain what reverse mortgage is, its associated cost and its financial implications.
How much you will receive from an HECM will be based on several factors like your age, kind of reverse mortgage Myrtle Beach you select, home value, and existing interest rates. If you have a lot of equity in your home then the amount you will get will be higher.
The private reverse mortgage, which is the last type, is comparable to that of an HECM. The distinction is that the private reverse mortgage loan is going to be provided by a private lender. The costs associated with it is also higher compared to the government HECM. If you own a house with a higher value, qualifying for a reverse mortgage through a private lender will be easy. You will also have higher chances of getting more cash from this kind of loan compared to that of a government HECM.
Call South Carolina Reverse Mortgage Services if you want to know how a reverse mortgage can help you.
Reverse Mortgage Specialist
1293 Professional Drive, Suite 204
Myrtle Beach, SC 29577