Certainly!
– **What’s a Reverse Mortgage?**
A reverse mortgage, specifically a Home Equity Conversion Mortgage (HECM) for Purchase, lets seniors 62 or older buy a new home by using the loan proceeds from the reverse mortgage.
– **HECM vs. Traditional Mortgage:
Unlike a traditional mortgage, with a HECM, you don’t have to make monthly principal and interest payments. You just need to keep up with property taxes, insurance, and maintenance. The amount you need to pay upfront varies based on your age, but it’s a percentage of the home’s price.
– **Home Eligibility:**
You can use a HECM for single-family homes, approved condos, townhouses, and certain other types of properties. The home must be your primary residence.
– **Financial Safety Net:**
The HECM program is insured by the Federal Housing Administration (FHA), which means you won’t owe more than your home’s worth when it’s time to pay back the loan.
The key takeaway for you as a consumer is that a reverse mortgage can be a way to buy a home without the burden of regular mortgage payments, while also potentially preserving your savings for other uses. It’s a financial tool that can give you more flexibility in your retirement years. Remember, it’s important to consult with a qualified professional to see if this option fits your personal financial situation.
Still have questions? Great – we love questions!
- Call us at 503.661.5580 or
- Submit a question on our Contact Us page or
- Email me at david@stone-bridge.com
