At Red Blue Realty, we’re always looking for the best mortgage products available for our clients. Finding the best reverse mortgages presently available is an area that requires particular care for senior homeowners. Red Blue Realty has carefully considered information about the options available for homeowners age sixty-two and above, who may be analyzing this financing option. While this mortgage choice isn’t right for everyone, seniors with solid home equity are often interested in exploring a reverse mortgage loan as a financing choice.
After all, a reverse mortgage yields options for older homeowners to utilize all their home equity while staying in their residence. Red Blue Realty is glad to explore other options for homeowners, such as standard home equity lines or property sales. But reverse mortgages, unlike other mortgage types, require no payments made monthly. Instead, principal and interest accrue, due only when a borrower dies or moves out. Until that time, the borrower must live in and maintain the residence. When the home is sold, sales proceeds pay the loan’s balance. The amount homeowners can borrow depends upon his or her age, the amount of equity in the property, and the interest rate.
While each of the best reverse mortgages work the same way, with the payment of the mortgage due only at the end of the mortgage term, Red Blue Realty’s professionals note that there are different kinds of reverse mortgages available. We think the best choice in most cases is the HECM or Home Equity Conversion Mortgage, a federally insured lender. We see this secure type of reverse mortgage loan as offering the most economical option.
HECM loans are for first mortgages only. Red Blue Realty can also work with homeowners to assist in the application of these funds to pay off any other mortgages. Loan amounts can be given as high as the federal limit for this type of loan, up to $625,000.
Credit counseling from a government accredited counseling service must be conducted before homeowners may apply for the HECM.
Besides federally backed loans, several other reverse mortgage options are available today. Options are offered by state and local agencies as well as by non-profit senior organizations, and private mortgage companies that service conventional mortgages as well. Senior Centers backed by states, and private mortgage brokers, both offer research options for comparison shopping of current reverse mortgages, and serve as one-stop-shops to assist homeowners in locating the best reverse mortgage for them.
The National Association of Mortgage Brokers provides resources for private and state options for seniors, including those comparing alternatives to the HECM mortgage program.
Well regarded private reverse mortgage brokers like Red Blue Realty offer a matching service to compare and contrast the best reverse mortgages currently available.
Carefully assessing and exploring the variety of options available means better choices for senior homeowners between the best reverse mortgages. Red Blue Realty is glad to help with this process. Call us with any questions.