An AARP reverse mortgage could be money that is waiting to be accessed by our senior citizens. AARP works with the older demographic and helps them not only get by, but flourish in all aspects of their lives – financially, emotionally, and get to enjoy the remaining years of their lives. This includes offering a reverse mortgage.
A reverse mortgage is not like the usual loans where you get the money and then pay it back monthly. A reverse mortgage is the opposite of that. Instead, you get money monthly, or in a lump sum if you prefer, and then pay it back when you sell the home, transfer your residence, or if you pass away.
HECM or home equity conversion mortgage is the most accessible kind of reverse mortgage and this is what most availed of because it is insured by the Federal Housing Administration (FHA). Although it is possible to get a reverse mortgage through private lenders and your local state as well.
One of the most asked questions, when somebody will take out a reverse mortgage, is the interest rates. It is unlike reverse mortgage fees that are easily understandable reverse mortgage interest rates are different. We understand that this is something important, so will explain to you how reverse mortgage interest rates work.
One of the things that differ reverse mortgage rates from other kinds of mortgages is that it is not paid monthly, out-of-pocket, or the moment the loan is approved but at the end of your loan’s maturity.
Your reverse mortgage will be deemed due if the following reasons occur:
- All borrowers pass away.
- All borrowers move to another residence – assisted living facilities or permanent transfer of residence other than the property used for the reverse mortgage.
- The owners sell the home.
- The owners fail to comply with the loan conditions to pay property taxes and homeowner’s insurance.
If a reverse mortgage is something that you think could be an option for you, you can contact us and explain this to you in detail.