Is a Reverse Mortgage Right For You?

Is a Reverse Mortgage Right For You?

The most important part of the Reverse Mortgage process is before you can shop for one you must be counseled about the program.

Contact HUD.gov and search for " Find an HECM Housing Counselor".

You can also find more information about reverse mortgages by going to:reversemortgage.org.

You can use your reverse mortgage on your current home to buy another home. This helps you when you want to buy another home closer to your kids.

You need to have about half of the new home purchase price in cash and the rest can be the reverse mortgage so you won't have to carry a mortgage payment.

Some of the qualifications is that you need to be at least 62 years old and that the new home you buy must be your primary residence - you have to live there at least 180 days out of the year.

You can see how much you qualify for at: mtgprofessor.com.

Your lender will tell you what your maximum payout will be which is partly based on your new home purchase price up to $625,000, your age, your spouse's age and the interest rate on your loan.

The older you are and the less interest you pay- you can get more of a reverse mortgage.

If you take your payout all in one lump payment- the interest rate is now about 5%. But if you don't take it all out you could be looking at an interest rate between 2.5% and 3%.

The fees you will need to pay at closing are your closing costs, your lender's origination fee and mortgage insurance upfront premium which will be about 2.5% of the home's value. If you take less than the full amount, your premium upfront will also be less.

You can roll some of these fees into your loan.

Outside of this and the fees you will continue to be responsible to pay property taxes and hazard insurance and of course any HOA fees or Condo fees that pertain to your property.

When both you and your spouse die, the loan must be repaid. The amount that will have to be repaid is either the mortgage balance or 95% of the appraised value of the property, whichever is lower.

The ways to handle this are; selling the house to pay the mortgage off, paying the house off outright or giving the keys to the lender.

If you are looking for a home here in South Florida- St Lucie County, Martin County, Palm Beach County, Broward County, Miami/Dade County... we have agents who know these areas very well and will help you find your second home to be near your grown kids and your grandchildren and perhaps great grandchildren.

We have some wonderful active adult 55+ communities here in South Florida.

Contact us today and we will match you with the best agent to help you!Contact Nestor Gasset directly on his mobile phone: 561-541-9936 to get started with your relocation to sunny South Florida today.