A reverse mortgage is a unique type of loan that is available to homeowners who are at least 62 years old. A reverse mortgage allows homeowners to access their equity and turn it into cash. These loans are designed to give homeowners access to their equity for living expenses or medical bills, among other things, and there are no monthly payments made to us.
With a reverse mortgage, we make a disbursement to the borrower. The loan amount and interest cause the balance of the loan to increase each month, as no payments are made.
Qualifying for a reverse mortgage requires no minimum credit score. Also, income requirements are less stringent when compared to other types of mortgage loans.
A regular mortgage is used to refinance a mortgage or buy a home, which means making monthly payments to pay back the loan. With a reverse mortgage, you borrow against your home. There are no monthly payments required, and the loan is due when the home is sold or when the borrower dies or moves out of the home. Unlike a traditional loan, the balance continues to increase with a reverse mortgage.
Reverse mortgages are often compared to home equity lines of credit (HELOCs) or second mortgages, although the difference is there are no monthly payments. Home equity loans and HELOCs have strict credit and income requirements, while a reverse mortgage has fewer income and credit requirements.
Reverse mortgages can also offer a higher maximum loan amount. With a reverse mortgage, the age of the borrower and the type of loan determines the maximum loan amount.
While there are many reasons to think about a reverse mortgage, the following are among the more common reasons:
Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:
An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020