Your home is likely the most valuable asset you have as you enter your senior years. Unfortunately, it’s a part of your financial story that you can’t access unless you sell your home or borrow against the equity. This poses a problem for baby boomers on a fixed income who need a boost in their finances to cover basic living expenses.
If this sounds familiar, a reverse mortgage might be your solution. At MortgageDepot, our loan officers are experts in helping our clients understand and obtain reverse mortgages in Pennsylvania.
What Is a Reverse Mortgage?
A reverse mortgage allows borrowers to access their home’s equity in the form of a loan. They receive tax-free payments that vary according to the type of reverse mortgage selected. The loan doesn’t need to be repaid until the borrower passes away or sells the home.
Who Is Eligible for a Reverse Mortgage?
To qualify for a reverse mortgage, borrowers must be at least 62 years of age and have a specific amount of equity in their home (typically 50%, but this may vary). Borrowers do not need to meet specific income or credit criteria to qualify for a reverse mortgage. If you are interested in a reverse mortgage, MortgageDepot will help you determine if you meet the eligibility requirements.
Types of Reverse Mortgages
There are four main types of reverse mortgages. With the help of a MortgageDepot loan officer, borrowers can select:
A lump-sum payment.
A line of credit to access equity as needed.
A tenure option that allows the borrower to receive equal monthly payments for as long as they live in the home.
A fixed-term option that allows the borrower to receive equal monthly payments for a specific period.
If more than one of these programs sounds like the best option for you, MortgageDepot can help you combine reverse mortgages to reach a customized solution.
Let our professional loan officers explain the benefits of a reverse mortgage to you today. Connect with MortgageDepot in Pennsylvania to learn more about what a reverse mortgage can do for you.