62 years old and above? Good news because you can avail of a reverse mortgage to help you cope with the current financial crisis brought by the COVID-19 pandemic. But even if you aren't affected by the pandemic financially, it would still be a good idea to have available cash whenever you need it.
I have an existing loan. Do I qualify?
So, who qualifies for a reverse mortgage
? Aside from you being 62 years old and above, the deed of the property must be under your name. Another good news is that for you to get more money for your reverse mortgage from Home Equity Conversion Mortgage or HECM, the older you are the better.
The property which you plan to use for your reverse mortgage must also be your primary residence and you should be living there for as long as the mortgage exists. Unfortunately, your second homes, rental properties, or vacation homes cannot be used for this purpose.
Are you afraid that you will be disapproved because you have an existing mortgage against the property you want to use for your reverse mortgage? Don't worry because you can still get apply but know that your existing liens on the property will be paid off first and whatever is left will be the money you will receive.
Are there any downsides in taking out a reverse mortgage?
So that you know what you are going to enter into
, it would only be fair to warn you that if you have heirs, they will be receiving a smaller inheritance from the property you used for your reverse mortgage. If you are also planning on moving out and transferring somewhere else in the near foreseeable future, then a reverse mortgage may not be for you.
Just like any other kind of loan, there will always be advantages and disadvantages to it. Let us know how we can help you understand reverse mortgages better.