Sometimes when your budget is tight, making a mortgage payment is stressful. If you refinance with a HECM reverse mortgage loan, the federally insured loan for homeowners over the age of 62, you can eliminate P&I (principal & interest) payments. You always are responsible for taxes, insurance, maintenance and utilities.
If your mortgage payment is $500/month, for example, eliminating the mortgage payment will loosen up your budget, giving you some wiggle room!
If you choose the option of having a Line of Credit, you also can make voluntary payments and each payment reduces your loan balance and increases the amount of your line of credit. There are alot of advantages to this, if you can make a voluntary payment, even if it is voluntary.
Reverse mortgages are complicated because there are so many different ways they can be used and different rules. It is best for you to talk to a reverse mortgage specialist like Renee Duval to understand how the loan can work for you.
The amount of reverse mortgage you are eligible for is dependent on your age, the value of your home and the current interest rates and, to some degree, your credit standing. All borrowers go through Financial Assessment. I'll help you figure it all out!
