Mortgage Blog

Bonita Reverse Mortgage

Bonita Springs Reverse Mortgage, Bonita Reverse mortgage

Most people are anxious when they think about applying for a reverse mortgage primarily because they do not understand what they are and how they work. Fortunately, if you are consiidering a Bonita Springs reverse mortgage, Core Mortgage Financial can help you work through the confusion and make a reverse mortgage work for you. Here are some key features of a reverse mortgage that are helpful to understand before you decide to take advantage of this program.

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Eligibility requirements

The eligibility for a reverse mortgage is very specific. The homeowner must be 62 years or older and own their home. If you currently have a mortgage, the mortgage must be paid in full at closing through the program before you are allowed to use the equity for a reverse mortgage. Keep in mind, the more equity you have in your home and the older you are, the more you can use for a reverse mortgage.

Borrowing costs

It is important to remember that you are in effect using your home like you would a bank line of credit. As you receive funds from the equity in your home, you are charged a fee for what you borrow, what you owe as well as a possible monthly fee for maintenance. When it comes to closing, most lenders will have the typical origination fees including private mortgage insurance, appraisals and other standard closing costs included in any mortgage.

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Monthly payments

While you have a reverse mortgage, you can take monthly payments from the equity in your home. However, other home ownership costs including taxes and insurance. These payments must be made as they come due or they may put your reverse mortgage in jeopardy. Some reverse mortgages automatically send the homeowner a monthly payment while others may allow the homeowner to withdraw funds as they are needed.  Borrowers may also take a one time lump sum payment.

Understanding repayment

Most homeowners understand that a reverse mortgage allows them to use the equity in their home while not being burdened with monthly payments. However, once the homeowner stops making payments, sells their home or passes away, the funds that were borrowed must be repaid to the lender. The good news is, a homeowner is allowed to repay any funds borrowed at any time, with no prepayment penalty. Family members often sell the property if the reverse mortgage note holders are no longer living.

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Bonita Springs reverse mortgage may be the right tool for you if you meet the qualifications. The funds can add to other retirement funds to ensure that you are able to maintain your lifestyle during retirement. Fortunately, there are a number of safeguards in place for the homeowner to ensure they are not put at financial risk. All homeowners who decide a reverse mortgage is a good financial tool for their needs must receive independent counseling as well. Contact Core Mortgage Financial today and let us help you determine if a reverse mortgage is right for your needs.

Apply for a Bonita Springs reverse mortgage or call (239) 431-5889.

Disclaimer: Rates, Programs, Guidelines are subject to change without notice. NMLS #849597

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