Find out what a reverse mortgage loan is, who is eligible and how to apply. Learn about lenders in the US and resources on the web.
As seniors continue living longer, and the cost of retirement rising exponentially, financial planning is essential. One area of finance that may be appealing to those over 62-years-old is a reverse mortgage loan. With a reverse mortgage loan, older adults are able to tap into the equity they have built in their homes while still maintaining ownership and remaining in their home.
Not only does this allow them to access additional funds for retirement, but it also provides other benefits such as eliminating monthly payments and protecting against foreclosure due to nonpayment of taxes or insurance premiums. Continue reading to find out how senior citizens can apply for a reverse mortgage loan and explore some of the potential advantages and disadvantages that come along with it.
How to Tell if You're Eligible for a Reverse Mortgage
To be eligible for a reverse mortgage loan, you must meet certain criteria. You or your spouse must be at least 62 years old, own your home outright or have a low enough balance on the existing mortgage that it could be paid off with proceeds from the reverse mortgage, and live in the home as your primary residence. Additionally, borrowers are required to receive counseling before applying for a reverse mortgage.
Applying for a Reverse Mortgage Loan
Once you've determined whether or not you're eligible for a reverse mortgage loan, you can begin the application process. In most cases, this will involve meeting with an FHA-approved lender to discuss your financial situation and determine if a reverse mortgage is right for you. The lender will also be able to give you an estimate of the amount of money you can borrow, as well as any fees or closing costs associated with the loan.
Top 5 Reverse Mortgage Loan Lenders in the US
Before applying for a reverse mortgage loan, it's important to do your research and make sure you're working with a reputable lender. Here are five of the top reverse mortgage lenders in the US:
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Wells Fargo: Wells Fargo has been offering reverse mortgages for more than 25 years and is one of the most trusted names in the industry.
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Bank of America: Bank of America offers a variety of reverse mortgage loan options with competitive interest rates, making them a great choice for those looking to maximize their returns.
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Quicken Loans: Quicken Loans makes it easy for seniors to apply for a reverse mortgage online, with no upfront costs or application fees.
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Reverse Mortgage Funding: This lender provides personalized assistance to seniors throughout the entire process, from application to closing.
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Rocket Mortgage: Rocket Mortgage specializes in providing low-interest loans with flexible repayment plans that fit your budget and needs.
How Long Does it Take to Prequalify for a Reverse Mortgage?
The pre-qualification process for reverse mortgage loans typically takes about 30 minutes. During this time, you'll answer questions about your income and financial situation so the lender can assess your eligibility and determine how much money you may be able to borrow.
Finding Resources & Online Information About Reverse Mortgages
If you're interested in learning more about reverse mortgages, there are a number of resources available online that can help provide valuable information. The U.S. Department of Housing and Urban Development (HUD) is one such resource and provides helpful educational materials on their website, including an FAQ section and contact information for approved lenders in your area.
Additionally, many states have state-specific programs for reverse mortgages, so it's worth doing some research to find out what options are available.
