Mortgage Blog

A reverse mortgage is a financial product that allows homeowners who are 55 years or older to access the equity in their home tax free and without income verification. With a reverse mortgage, the lender provides the homeowner with a lump sum, monthly payments, or a line of credit, which is secured by the value of the home. As a mortgage broker I have access to few lenders and can choose the best option for you. I also have a lender who can do reverse mortgage for clients of any age for up to 40% of the property value. 

When considering a reverse mortgage, there are several factors to consider before applying. Here are some of the key things to look for:

1. Interest Rates Interest rates on reverse mortgages can vary widely between lenders, so it's important to shop around and compare rates. The interest rate will affect how much you can borrow and how much you will ultimately have to repay.

2. Set-Up Fees Reverse mortgages often come with fees, including origination fees, closing costs, and mortgage insurance premiums. Be sure to ask about all fees associated with the loan, including any ongoing maintenance fees.

3. Pre-Payment Penalties Some reverse mortgages may include pre-payment penalties if you pay off the loan early. Make sure to ask about any pre-payment penalties before signing up for a reverse mortgage.

4. Loan Amount The amount you can borrow with a reverse mortgage is based on several factors, including your age, the value of your home, and current interest rates. I can calculate maximum mortgage amount withing few minutes. 

In conclusion, a reverse mortgage can be a helpful financial tool for older homeowners who are looking to access the equity in their home. However, it's important to carefully consider the interest rates, fees, pre-payment penalties, and loan amount before applying for a reverse mortgage.