Reverse Mortgages in Gaithersburg, MD

If you are currently a homeowner but are having difficulty keeping up with your financial obligations – or are having financial troubles in general – then don’t assume that the only solution is to sell your house fast for cash. There may be another option available to you, which is to take out a reverse mortgage on your home.

What Is a Reverse Mortgage?

A reverse mortgage is a type of home loan specifically created to help seniors who are in need of financial assistance. It’s different than taking out a second mortgage because in order to take a second mortgage out, you need to have adequate income to qualify. Since many senior citizens no longer work, they may not have the income needed in order to qualify for a second mortgage.

A reverse mortgage works a bit differently in that it allows you to convert a part of the equity you have in your home into cash while still retaining ownership of the house. This enables you to have stronger financial security and gives you the money you need to keep up with your health insurance, your monthly expenses or any other financial obligations you might have. In fact, there are no restrictions to how you use the money from your reverse mortgage. The way the loan is provided is through monthly payments that are made from the lender to the borrower – which is why it’s called a “reverse mortgage.”

Once you’ve taken out the reverse mortgage, you will not be required to pay back the loan until the house is sold or vacated. As long as you continue to live in the home, you won’t have to make any payments towards the balance of the loan. However, you will still be required to pay property taxes, homeowners insurance and homeowner association dues if they are applicable.

How to Qualify for a Reverse Mortgage in Gaithersburg

In order to qualify for a reverse home mortgage, you’ll need to meet the following criteria:

  • You are 62 years or older.
  • The reverse mortgage must be the primary lien on your home. This means that if you have an existing mortgage, you’ll have to pay it off using the reverse mortgage proceeds.
  • The home must be your primary residence.

Once the borrower passes away, the reverse mortgage loan must be paid back. The heirs can satisfy that debt by either paying the lesser of the mortgage balance, 95 percent of the appraised value of the property or by allowing the property to be sold by the lender.

Reverse Mortgage Broker in Gaithersburg, MD

If you are a homeowner and are having financial issues or would like more financial freedom, then you may want to consider taking out a reverse mortgage in Gaithersburg, MD. If you are thinking about taking out a reverse mortgage, then you should speak to a reputable reverse mortgage broker, such as Alex Echeandia, to find out whether or not you qualify for a reverse mortgage as well as to find out more information in general.

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