A Reverse Mortgage And A Home Equity Conversion: What To Know

A Reverse Mortgage And A Home Equity Conversion: What To Know If you are getting ready to retire, you need to make sure you have income to support yourself during your golden years. One popular option is a reverse mortgage, and you can use it to supplement the benefits you receive through Social Security. On the other hand, you may have also heard about a home equity conversion mortgage. What are the differences between them, and which one is right for you?

A Reverse Mortgage

A reverse mortgage is a popular option because you can tap into the equity you have in your home to receive funds from a specific lender. In some cases, they will provide you with a single lump sum, but in other cases, they may provide you with monthly installments. You are not required to make any monthly mortgage payments, and you simply have to pay the money back when you sell your home. Your name will remain on the title of your home even as you tap into the equity to support your retirement. There are multiple types of reverse mortgages, and a home equity conversion mortgage is one popular option.

A Home Equity Conversion Mortgage

A home equity conversion mortgage is one specific type of reverse mortgage that is insured by the Federal Housing Administration. It provides you and your heirs with certain protection, and it is only available to borrowers who are 62 years of age or older. If you take out this type of reverse mortgage, you must use the funds to pay off any remaining balance you have on the original mortgage. Then, any funds that are left over will be provided to the homeowner. There are a number of factors that will dictate the amount of money you can receive. They include the age of the youngest borrower, the expected interest rate, and the national lending limit insured by the FHA.

Is This Option Right For You?

If you own your home outright, a reverse mortgage could be a great way for you to support yourself during retirement while also protecting any inheritance you passed down to your heirs. Consider reaching out to a professional who can help you decide if this is the right option to meet your needs.

What’s Ahead For Mortgage Rates This Week – March 27, 2023

Last week’s financial and economic reporting included readings on sales of new and previously-owned homes, along with weekly data on mortgage rates and jobless claims.

Six Key Reasons You’ll Want to Work With a Real Estate Agent When Pricing Your Home

Whether you know a little bit about the market or you’ve sold a home before, you may be considering pricing your own home to avoid the assistance of a real estate agent. Before making a final decision, consider the following tips.

White Lies That Could Make It Harder To Buy A Home

Right now, the real estate market is very competitive, and you might be tempted to use a few white lies to make your offer seem more competitive. No matter how much you want to purchase a home, you need to make sure you are completely honest and open when you go through the process from start to finish.

Expecting a Newborn? Baby-proof Your Home With This Quick and Easy Checklist

It’s a very exciting time for most parents when their kids begin to crawl, but it can also be much more difficult to watch over your child and ensure their safety. If your child is starting to get along on their own and you’re preparing to baby proof, here are the main areas and items you’ll want to watch out for.

An Overview Of A Wrap-Around Mortgage: What To Know

Are you having a difficult time qualifying for a traditional mortgage in the current market? If so, there are other options available, and a lack of financing can frustrate not only the buyer but the seller as well. For example, one option that you may have heard about is called a wrap-around mortgage.

What’s Ahead For Mortgage Rates This Week – March 20, 2023

Last week’s economic reporting included readings on housing starts and building permits issued, the National Association of Home Builders Housing Market Index, and Fed Chair Janet Yellen’s Senate testimony. The Commerce Department reported on housing starts and building permits issued published, and a monthly reading on consumer sentiment was published. Weekly reports on mortgage rates and jobless claims were also released.

How to Get Along With Your Homeowners Association

Rules and covenants of a homeowners association can be a bit overwhelming, especially for a first time homeowner. Understanding that the regulations are designed to protect the value of your home helps make some restrictions easier to live with.

Manage These 3 Items Before Applying For A Mortgage

Mortgage lenders weigh the risk of getting their principal and interest paid back by looking at the qualities of the prospective borrower. And due to the amount of money being requested and lent to purchase homes, those requirements can become daunting.

Short-Term Vacation Rentals: What To Know

If you are interested in purchasing a rental property, you might want a short-term rental that you can use as a vacation home. This can be a great way to generate some additional income, and you might be able to make thousands of dollars every week if you purchase a property in the right location. On the other hand, there are several important factors you need to consider before you purchase a rental property.