Allow me to let you in on a secret about reverse mortgages – the “mysterious” product that has everyone up in a hype.
Here it is: it is a mortgage. “A legal agreement whereby a lender agrees to lend money in return for an interest rate and a security interest in the property on behalf of the loan”.
Whew! Hate to be the person who finally says it out loud, but this is a mortgage transaction – that’s all.
Now of course, there are a few things that are different about this mortgage, such as the ability to not have to make monthly mortgage payments, but EVERY mortgage has different terms. A 30 year mortgage is different than a 20 year mortgage, which is different than an adjustable, which is also different from a balloon mortgage. As always, education is key and you should learn from experienced, capable people.
Now that the cat is out of the bag, let’s look at all the ways a Reverse Mortgage can help Senior homeowners today:
1. Use the loan proceeds to pay off your existing mortgage and eliminate your required monthly mortgage payment.
2. Use the loan proceeds to receive monthly payments or lump sum cash.
3. Take advantage of a Line of Credit that GROWS over time.
4. Use loan proceeds to pay off credit cards, go on vacation, pay medical bills, upgrade your home, or whatever you’d like. The possibilities are endless!.
5. It allows you to stay in the home you’ve loved all these years.
6. You can even use a Reverse Mortgage to BUY a new home that fits your needs.
Our clients have accomplished all the above and more. Find out the truth about what a Reverse Mortgage can do for you!
FirstBank is a TN State chartered Depository Bank regulated by the TDFI and the FDIC. This is an FHA-insured loan. Homeowners must be 62 years of age or older and live in the home as their primary residence. Homes must meet FHA/HUD minimum property standards. Borrowers must maintain hazard and flood insurance premiums, property taxes, utilities and make any property repairs. Although there are no mandatory monthly principal and interest mortgage payments, interest accrues on the portion of the loan amount disbursed if no payments are made. Reverse mortgages can use up all or some of the equity in your home and the amount you owe can increase over time. Loan must meet underwriting requirements. Program rates, fees, terms and conditions are not available in all states and subject to change. FirstBank Mortgage is a division of FirstBank. All products and services offered through FirstBank NMLS# 472433. This document is advertising by FirstBank.