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Frequently asked questions ? Who is eligible for a Reverse Mortgage? How does a Reverse Mortgage differ from a home equity loan? How much money can I borrow with a Reverse Mortgage? Where can I learn more about Reverse Mortgages?
A Reverse Mortgage is a type of mortgage that enables you, as a senior home owner, to tap into the equity you have in your home. Whether you need a lump sum to take a vacation or a stream of regular advances to supplement your monthly income, a Reverse Mortgage offers a payment option to address your particular financial needs. With a Reverse Mortgage, you will receive proceeds based on the value of your home. There are many different payment plans available. Payment plans are able to be changed at any time over the life of the loan, for a nominal fee. Unlike traditional mortgages or home equity loans, no repayment of the Reverse Mortgage loan is required until you no longer occupy the home as your principle residence. Who is eligible for a Reverse Mortgage? You, and any co-borrowers, must be at least 62 years of age and either own your home free and clear or have a small outstanding balance. Condominiums are eligible for Reverse Mortgages however, certain requirements do apply. How does a Reverse Mortgage differ from a home equity loan? While both a Reverse Mortgage and home equity loans enable you to turn the equity in your home into spendable dollars, there are important differences. With a home equity loan, you must make regular monthly payments to repay the loan. These payments begin as soon as the loan is originated. To qualify for such a loan, you must have a monthly income great enough to make those payments. A Reverse Mortgage has two principle differences from the typical home equity loan:
How much money can I borrow with a Reverse Mortgage? The maximum amount you can borrow, the principle limit, is based on three factors: the number of borrowers, the ages of those borrowers and the adjusted property value. The adjusted property value is the lesser of the appraised value of your home or the FHA loan limit. FHA HECM (Home Equity Conversion Mortgage) maximum lending limits vary based on the state and county in which your home is located. A Reverse Mortgage is a loan against your home that requires no repayment as long as you are living in your home. They are "non-recourse" loans. This means the amount you owe can never exceed the net selling price of your home. If borrowers live beyond their life expectancy, you could receive more than the properety's value.
Five points to remember:
When you close the loan, you will select one of the following payment plans: Tenure option -you receive equal monthly payments for as long as you occupy the home as your principle residence. Line of credit option -you draw upon the principle limit of cash available at times and in amounts of your choosing. Modified tenure option -you may set aside a portion of loan proceedes as a line of credit and receive the rest in the form of equal monthly payments. Where can I learn more about Reverse Mortgages? Call us at the number below
Circle Mortgage Corporation - CORPORATE OFFICE 6600 TAFT STREET, 4TH FLOOR HOLLYWOOD, FLORIDA 33024 (800) 576-1338 Toll Free (954) 981-6800 Broward (954) 981-6804 Fax (305) 893-3114 DADE (561) 865-3110 Palm Beach (800) 576-4144 Toll Free Orlando (407) 855-2750 Orlando Se Habla Espanol! WE LEND THROUGHOUT THE ENTIRE STATE OF FLORIDA
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