{"id":490,"date":"2014-06-18T23:33:42","date_gmt":"2014-06-19T06:33:42","guid":{"rendered":"https:\/\/shellyrobersonrealtor.com\/?p=490"},"modified":"2014-07-01T10:41:12","modified_gmt":"2014-07-01T17:41:12","slug":"straight-facts-about-reverse-mortgages","status":"publish","type":"post","link":"https:\/\/shellyrobersonrealtor.com\/straight-facts-about-reverse-mortgages\/","title":{"rendered":"Straight Facts about Reverse Mortgages"},"content":{"rendered":"
You have probably heard the term \u201creverse mortgage\u201d but do you really understand what one is?\u00a0 A reverse mortgage is basically a loan homeowners older than 62 years old can utilize to convert part of their equity in their home into cash.\u00a0 Retirees with limited income streams were originally the target audience for this product \u2013 the idea was that folks in their retirement years could benefit from the equity in their homes by having the home\/bank make payments back to the homeowner instead of the homeowner paying the bank.\u00a0 A borrower is not required to pay back the loan until the home is sold or otherwise vacated.\u00a0 As long as a borrower lives in the home they are not required to make any monthly payments towards the note balance, however the borrower must remain current on the property taxes, HOA dues, etc.<\/p>\n
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To obtain a reverse mortgage on a home, that home must be your primary residence, which means you must reside there at least 183 days per year.\u00a0 Additionally, once you obtain a reverse mortgage, you must confirm your residency by signing an Annual Occupancy Certificate that is provided to a borrower by the loan servicer.\u00a0 If you must leave your home for an extended period of time, due to work or health reasons, you are required to notify the servicer.\u00a0 If you are out of your home for more than 12 consecutive months your loan will be in default.<\/p>\n
Importantly for borrowers, there is no restriction for how reverse mortgage proceeds can be utilized.<\/p>\n
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