Top Reverse Mortgage Tips To Help You Make the Best Decision
When it comes to considering any real estate loan, there are many different factors to keep in mind. A decision like this should not be rushed or taken lightly, but thought about carefully, and throughly. This should all be kept in mind when considering whether or not it makes sense for you to take out a reverse mortgage loan. A reverse mortgage loan gives homeowners 62 years old and above, the ability to access equity in their homes while still retaining the title of their home. These five tops should be able to help you through the decision process, and hopefully give you some insight on reverse mortgages.
- Reverse mortgage rates may have different interest rates: These rates are set by banking institutions. Since you will not be making payments towards the amount of the loan, there can either be a variable or fixed interest rate.
- Find a lender who specializes in reverse mortgages: A reverse mortgage is a very important decision, so it is imperative to find a representative who is an expert in this field. Research, read, reviews, and ask friends, and family for recommendations.
- You only repay the value of the home: Even though you are usually able to borrow of your existing equity, you are only responsible to pay the value of their home. This is put into place to safeguard debt to be passed onto family members.
- You cannot deduct interest: A reverse mortgage is considered a loan, and since it is a loan, you are not able to deduct the monthly interest from your taxes.
- Lenders generally charge closing costs: Be sure to discuss all costs, and fees such as an origination fee, mortgage insurancepremium, and all closing costs up front. Ask the questions you have, and make sure everything is clear on both ends.
If you have any questions about how a reverse mortgage works or you are considering one, don’t wait, and give Dave Yaniro a call at (443) 794-3967!