A reverse mortgage loan can be an effective strategy to turn your home into income that can supplement your retirement earnings, but you need to understand how these loans work to decide if one is right for you. One question people have about reverse mortgages is how many years does a reverse mortgage last?
Our Go Reverse Mortgage team is here to cover this and give you an answer to this common question.
Qualifications for a Reverse Mortgage
In order to qualify for a reverse mortgage, you must be at least 60 years old and must live in the property for the majority of the year. The borrower must be financially capable to continue making payments on homeowners insurance, property taxes, and homeowner association fees. They must also participate in an informative counseling session provided by the U.S. Department of Housing and Urban Development approved reverse mortgage counselor.
Reverse Mortgage Options
It’s important to discuss all of your options before agreeing to get a reverse mortgage so that you understand how much money you can receive and when. There are many program choices with respect to reverse mortgages, including: Home Equity Conversion Mortgages (HECMs) and Home Safe mortgages.
HECMs are more common, but Home Safe Reverse Mortgages offer more flexibility regarding loan amounts, interest rates, repayment terms, and other features. Both types generally allow homeowners to convert part or all of their home equity into cash without making monthly payments until they move out or pass.
Average Lifespan of a Reverse Mortgage
A normal term for a reverse mortgage is the length of time the borrower remains living in their home after having taken out the mortgage. The number of years can vary greatly from person to person — it really just depends on your circumstances.
It’s important to check with your lender regarding the specific details of your loan.
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At Go Reverse Mortgage, we pride ourselves on excellent customer service and building long-lasting relationships with our clients. Our team wants to ensure you have a gratifying and seamless experience. We vow to find the best rates for your reverse mortgage, no matter your needs! Get in touch with us today.