![]() ![]() With a reverse mortgage the amount that can be borrowed is determined by the HECM program formula that considers age, the current interest rate, and the appraised value of the home.Īs stated previously, with traditional loans the Borrower(s) is required to make monthly payments of principal and interest, however with a reverse mortgage, no monthly payment is required. ![]() ![]() In addition, unlike a HELOC, the lender cannot reduce a HECM reverse mortgage line of credit. Many seniors use the remaining proceeds to fund medical expenses, make home repairs or just keep the extra cash in case of an emergency for that “rainy day”. Unlike a Home Equity Line of Credit (HELOC), the HECM does not require the Borrower to make monthly mortgage payments and any existing mortgage or mandatory obligations must be paid off using the proceeds from the reverse mortgage loan.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |