Florida Reverse Mortgage Interest Rates

How safe are reverse mortgages? These loans started with some rough and sketchy history. Still, they have adjusted and matured into safer loan options which open the door of opportunity for so many disgruntled senior citizens.

In the past, Florida reversed mortgage loans suffered from high-interest fees, unnecessary extra charges and a bunch of inconveniences that did not stimulate anyone to consider applying. Many private reverse mortgage lenders stopped offering the loans because they did not expect to attract a sizeable number of clients.

FAQ Reverse Financing in Colorado

What Is A Reverse Mortgage?

These are home loans that allow homeowners at least 62 years old to get a new home while using their current home as equity. Homeowners with these loans have an incentive over other loans because they do not have to pay them back every month. The amount that one borrows is the principal amount, and it can variate based on several factors such as the applicant’s age, the HECM limit and the total value of the home. Some options that come with a variable interest rate include:

  • The monthly payment for a fixed number of months
  • A line of credit that you can use until it runs out
  • A combination of different monthly payments and a fixed-line of credit
  • A combination of different monthly payouts

Who Will Own The Property?

The mortgage applicant is the only person who can own the home, just as it is with a standard mortgage loan. The most common misconception about these homes is what happens when one passes away, which we would like to explain, so you know what to expect.

The mortgage should be paid in full when you finally pass away, hence why some people choose to use their life insurance against the mortgage loan. Others have an agreement with the heir, who promises to pay the home in full so that the lender is not forced to recoup the amount by selling it. It is typical for most homeowners to have some arrangement that allows them to keep the home in the family line, so be sure to consult with a  Reverse mortgage specialist like Reversed By Michelle to outline all your possible options.

Types Of Reversed Mortgage Loans

Each loan type has different agreements and incentives, so be sure to check all of them for an idea of how they will match your financial needs:

  • HECM is the most popular of all reversed loans and can be used for other purposes outside of paying for the home.
  • Proprietary reverse loans – The loan has federal backing and is typically larger than all other kinds of loans. Use this type if you have a high-value home.
  • Single-purpose revere loans are the least common of all three and are a product of the federal government and NGOs. Typically, the loan is much smaller and suitable for minor financial purposes.

How much money can you get from any of the above mortgage loans? We have the answers for this, and more ad encourages you to contact us online for a personalized consultation on home loans by a reverse mortgage lender.

 

Florida Reverse Mortgage Interest Rates

Michelle G. Coleman- Colten Mortgage

7202356510

Florida Reverse Mortgage Interest Rates

6021 S. Syracuse Way Ste 104 | Greenwood Village CO 80111

Greenwood Village
CO
80111
US



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