Reverse Mortgages – The Basics

Enjoying your St. Augustine home well into your retirement years, without worrying over money or financial strain sounds great, doesn’t it? Well, it can be easily achieved through a reverse mortgage. Reverse mortgages, which have gained in popularity over the last few years, are often a senior’s solution to financial hardships.

Who is eligible?

A reverse mortgage is a specific type of mortgage for homeowners aged 62 and older. It essentially enables you to turn your home’s equity into cash without ever having to sell your home, give up the title, or take on another mortgage payment. You will never need to repay a reverse mortgage for as long as you live in your home.

What types of reverse mortgages are available?

Most reverse mortgages are federally insured loans which guarantee that you will receive payments for as long as you live in your St. Augustine, Florida home.

There are also insured and uninsured private reverse mortgages available to seniors. These types of reverse mortgages are ideal if your home is worth more than the HUD’s limit for your particular county, as they can offer you larger cash advances.

What can you do with the cash from a reverse mortgage?

You may choose to use the cash from your reverse mortgage to pay for home repairs, give gifts to your children and grandchildren, pay taxes, pay for large medical expenses, pay for long-term care insurance premiums, pay for monthly expenses or pay for at-home care services. You may even use some of the money for a vacation of a lifetime!

You can choose to receive the cash from your reverse mortgage in the form of a lump sum, monthly payments, as a line of credit or a combination of any of these.

A reverse mortgage enables you to pay off your existing mortgage (if there is one), thereby eliminating a monthly mortgage payment. This alone could greatly reduce your financial burden.

Another benefit of reverse mortgages is that your ability to obtain a reverse mortgage is not dependant upon your credit history, your income or your health.

Generally speaking, you will be able to borrow up to 45 percent of the equity in your home from a reverse mortgage.

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