Reverse Mortgage Education
Start learning about reverse mortgage here – from the basics to more advanced topics.
Understand how it works to make a smarter loan decision. While you can always ask financial advisors or counselors for help, having sufficient knowledge about reverse mortgages allows you to take your next step with confidence.
Reverse Mortgage Basics
One pitfall that you may encounter in retirement is falling short of funds to meet your essential expenses. Most people prepare for this risk through planning ahead, working longer, or delaying their social security. However, if all of these still turn out to be insufficient to meet your needs or if you face an emergency that caused a great impact on your finances, there’s one thing you can turn to and that is reverse mortgage.
Start learning about reverse mortgage here and understand how it works to make a smarter loan decision. While you can always ask financial advisors or counselors for help, having sufficient knowledge about reverse mortgages allows you to take your next step with confidence.
What You Need to Know
In order to grasp what reverse mortgage is about, you need to learn the basic information first. Below are topics covering what you need to know to understand how reverse mortgage can help you.
What is a Reverse Mortgage?
As its name suggests, a reverse mortgage is just like a normal mortgage only that it’s the homeowner that receives regular payments, and not the lender. In this type of loan, you are borrowing against your home’s equity, which is then turned into cash that you can use.
Features of Reverse Mortgages
When you take a reverse mortgage, the title still remains in your name and whatever amount you get from it is non-taxable. But there’s more to reverse mortgage than that. If you’re thinking of making this loan, you need to know how to apply for it, how loan payments are distributed, and whether interest rates are fixed or not.
Reverse Mortgage Fees and Costs
Lenders will typically charge several types of fees on a reverse mortgage, but these can be paid from the loan proceeds. These are the most common fees included that you may need to pay if you take a reverse mortgage:
- Origination fee
- Mortgage insurance premium
- Appraisal fee
- Closing costs
- Servicing fee
Learn what these fees are for and how much they typically cost.
Reverse Mortgage Pros and Cons
Do you want to know if a reverse mortgage will work for you or not? One way to do so is weighing its pros and cons.
Review the advantages and disadvantages of getting a reverse mortgage so you can make an informed decision and to know if it’s going to fit right into your situation and tolerance for risk.
Types of Reverse Mortgage
Reverse mortgage comes in different types and each has a specific set of features and rules. Deciding which type to get is one of the most important steps in taking a reverse mortgage, so learn what these are and how each of them works.
Ask our reverse mortgage experts to receive specific answers as well as qualified financial advice. You may also visit our FAQ to check whether we’ve already covered your question.