Many people think that getting a reverse mortgage loan means
they are selling their houses to a lender for a lower value and that the lender
will stand to benefit once the value of your home increases in the future.
If you get a reverse mortgage, just like when you obtain a
traditional loan, the lender will take a security interest in your home’s value
for the outstanding balance that you carry out.
With a traditional mortgage, you will own the house even
though you owe a big amount of cash at the outset of your loan. You just pay
off the amount of the loan over time until you have paid it off completely.
With reverse mortgage loans, you continue to own the house
but you will owe a smaller loan amount at the start of the loan and the amount
that you owe will grow until your death or once you have decided to move out of
the house for good. You build up interest on the reverse mortgage loan so you
owe much more than once the time comes that you have to repay the loan, which
is usually done by selling the house.
Get The Benefits Of Selling Your Home
There is a misconception that with a reverse mortgage, the
bank owns the house. That is not true. Although it may seem like you are
selling your home to a lender. But the truth is, you are only selling them a
part of your house.
The reverse mortgage will pay off your existing loan. You will
have access to the equity of the house now so you could live the way you want,
without the responsibility of paying repayments every month.
When you purchase a new house, you usually put down between
5%-20% of the purchase price, so it is like the bank is purchasing most of your
house, but letting you live in it while you pay them back what you owe with
interest.
This is a lot like reverse mortgage. If you have home equity
remaining in your house at the end of the day when your home sells, it will
still belong to you as the borrower or to your estates.
You Own The House
You might be thinking that a reverse mortgage Columbia may prevent
you from repainting your home, renovating, renting out a room, or having a
family member move in.
Once again, that is not true. A regular reverse mortgage
will not restrict you from doing any of these things. With a reverse mortgage,
you are the legal owner of the house and your name will remain on the title.
There are some restrictions on certain things like renting
out the house while you are not living in it. It is because this kind of loan
was created to allow retirees to age in place and that is why you should stay
in the house and use it as your primary residence.
Call
David Stacey
Reverse Mortgage Specialist
Columbia, SC 29205
(803) 592-6010
http://reversemortgagecolumbiasc.com/
Reverse Mortgage Specialist
Columbia, SC 29205
(803) 592-6010
http://reversemortgagecolumbiasc.com/
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