If you are looking for more financial freedom while staying in your own home, a reverse mortgage is a great option to consider. With the constant growth in Idaho, and increases in costs it can become harder to manage basic living expenses. Luckily, there is expert help regarding Idaho reverse mortgage options.
If you are 62 years or older and are looking for a resource to better understand how to turn your equity into cash, you have landed in the right place. Let’s begin with a basic breakdown of what to expect when considering a reverse mortgage.
So What is a Reverse Mortgage?
A reverse mortgage is basically a loan. However, this is a loan that puts money right into your lap. The reason for it not being considered “just a loan” is because a lender is making payments to the borrower whereas a traditional loan you are making payments to a lender. The main purpose for a reverse mortgage is to convert your equity into cash or other forms of payment.
- As mentioned before, you must be at least 62 years of age or older
- Own your home outright and have enough equity to qualify (contact your local specialist or access the reverse mortgage calculator)
- Occupy your home as the primary residence
- Have at least enough money to cover your homes insurance, property taxes, and maintenance costs (repairs)
- Speak with an approved HUD/FHA counselor
Can I Qualify for a Reverse Mortgage When My Spouse is Younger than Me?
The answer is yes. However, there are several precautions to take note of. First off your spouse may have to file under “non-borrowing spouse”. By doing this, your spouse can still remain in the home if you pass away while the loan is active. They also are able to remain on title as well. Because your spouse may play an important role in the decision of getting a reverse mortgage, it is wise to make sure that when speaking with your local Idaho reverse mortgage expert you explore your options together.
Will I Only Be Getting Cash?
The beauty of getting a reverse mortgage is the many payout options it provides for you so that you can find the best way to care for yourself. Options to expect during discussion are:
- Lump Sum Payment
- Line of Credit
- Fixed Monthly Payments
- Combination of These Options
- Payouts are an exciting aspect of a reverse mortgage, and when given a multitude of options you can’t help but consider the real benefit your own home can offer you.
What Will it Cost Me?
Most people see the word “mortgage” and see a bunch of dollar signs. However, with a reverse mortgage you might find yourself paying for the fees using the proceeds you gain from it. Therefore, you are not losing out on any other source of income. Expect high costs, but less worry if you plan on residing in your home for quite awhile.
- Origination Fee
- Mortgage Insurance Premium
- Closing Costs
- Servicing Fee
- Interest Rate
For more specifics, you can gain expert advice in Boise, Eagle or beyond by contacting an Idaho reverse mortgage specialist like Devin Fahrner.