By The Westlake Team
1. A reverse mortgage is solution for home owners 55 years and older that want to access equity from their home without having to sell it. For clients that may not have the income to qualify from their bank fora mortgage, this program allows you to access a percentage of it, depending on your age and the home value. One key feature is there are no payments. The loan is repaid when the home is sold.
2. A Home Owners, 55 years and older and the subject property is your primary residence.
3. Your age, age of your spouse (if you have one), where you live, homes condition and value through an appraisal, potential independent legal advise on the suitability of the lending solution prior to advancing the funds.
4. You don't have to make regular payments. You have the option of repaying your principal and interest (check to see if there is a cost) but typically the interest is added to the principal and repaid when the home is sold.
5. Typically a higher interest rate than a "normal mortgage," home appraisal fee, a set up fee, a pre-payment penalty if aid before its due, legal fees for independent legal advise and closing costs.
6. Our team can help find the right solution when looking for a reverse mortgage and more importantly determining if this product is a suitable solution. We always recommend independent legal advise along with our advise on the suitability of the product. For more information, please fill out on of our contact forms on the home page or call our office.
7. Pros - Don't have to sell your home to access equity, no payments, qualify without income confirmation. Cons - interest rates can be higher, equity may go down as interest adds up over years.
8. What are the fees, what the interest rate will be, what happens if loan value is more than value of estate, any penalties if you sell your home and more.