Three things you should know:
- They can be right for you
- They can be wrong for you.
- You can trust us to know the difference
Home is where the heart is. It can also be the key to reaching your retirement goals. If you love the house you’re in and want to stay there through retirement, consider a reverse mortgage from MVSB. We know it can be a big decision- and we’ll listen (in person) to all the questions you may have. Here’s a start:
What is a Reverse Mortgage?
As the name suggests, it’s similar to a traditional forward mortgage, but it works in reverse. Instead of you making payments to the bank, the bank makes payments to you. If a lump sum is taken out then the bank does not pay you. The homeowner must pay property taxes and insurance, maintain the home in good condition and it must be their primary residence.
A reverse mortgage allows you to tap into some of the equity you’ve built in your home. It’s a loan against your home and you don’t have to pay it back for as long as you live in the home. Although there are no monthly payments, interest still accrues on the disbursed principal balance during the loan term.
How much money can you get?
The amount is typically determined by the age of the youngest borrower, current interest rate of the mortgage option chosen, appraised value of your home and the amount of equity in your home.
Who is eligible?
Homeowners who are 62 years or older with sufficient equity in their home.
How can you use the money?
The money from a reverse mortgage is available to use for whatever purpose you need: living expenses, home repair or improvement, prescriptions, or medical care. Many customers use the cash to pay off an existing mortgage or other debts, to enjoy something they always wanted to do or build their nest egg.
How can you receive your money?
You can receive the money in a number of ways. Get a lump sum to pay off an existing mortgage or make home repairs. Have a stream of monthly payments to boost your income or have that line of credit just in case to cover those unexpected expenses. You can even choose a combination of these methods – whatever best meets your needs.
Will you still own your home?
Yes—you retain title to your home. And you can live in it as long as you like because the loan doesn’t have to be repaid until you leave or sell the home. As the homeowner, you must continue to pay property taxes and insurance, maintain the home in good condition as your primary residence.
Is a reverse mortgage right for you?
Your home is your greatest asset – and you’ll want to take great care as you consider a reverse mortgage. We will certainly be careful too, because we are committed to you – and to this community. Contact Denise Hubbard, our reverse mortgage specialist – to discuss if a reverse mortgage might be right for you.
Mortgage Loan Program Specialist
NMLS ID: 47515