For those who are retired and are asset-rich but lacking cash can make use of reverse annuity mortgage.
This loan is where you get a loan against the value of your home and you do not have to move out or sell it. There is also no need to make any loan payments in this kind of mortgage.
However, the balance has to be paid in case the homeowner moves away, sells the house, or passes away. The loan value is set such that is does not exceed the assessed value of the home so that the borrower and his family will not be burdened to pay.
Who can avail of a reverse annuity mortgage?
The homeowner must be 62 years old or older to qualify to apply. You must be the owner of the home and all other mortgages must be paid off by using the proceeds from the mortgage.
Property taxes must remain updated as well as other mandatory obligations such as insurance, and other dues.
Another requirement is that the home must be in food condition and must be built after June 1976.
How can reverse annuity mortgage help you?
This is a loan option that makes it easier for retired homeowners to live comfortably.
Despite the mortgage, you still own your home and keep updated with the obligations of being a homeowner, and live there.
The proceeds can be used as a lump sum or you can use it as needed, or it can be a combination of both.
Not everyone wants to borrow money to augment funds. But reverse mortgages can help a lot in making a retiree more comfortable and it also serves an important purpose. You do not have to worry about paying for healthcare or buying food when you have cash-on-hand.
Reverse annuity mortgage vs regular loan
If you are living in an area that is constantly appreciating, but the income remained the same, you can turn the appreciation of land into your advantage. This loan will have no negative impact on our customer’s cash flow. Since reverse mortgage lets you get in small amounts, there is no need to pay for a huge amount of interest.
There are several scams involved in a reverse mortgage loan. If the offer is too good to be true, then it must be. Several agencies have been in the industry for a while and they are the reputable ones that you can go to and consult whether you qualify for such a loan.
Before choosing a mortgage agency, always research it and read the reviews. This can help you avoid any scams. A good company will tell you all that you need to know and you can set up an appointment with them.
Blake Mortgage can help you with a reverse annuity mortgage and can set up a counseling meeting. They have been in the business for a while and has established a good reputation. They are trusted by many for residential and commercial mortgages. Please visit here to know more: https://www.blakemortgage.com/loan-options/reverse-mortgage