Reverse Mortgage - Minnesota Mortgage Guy

Reverse Mortgage

What is a Reverse Mortgage?

A reverse mortgage is a home-secured loan that can turn part of the equity you’ve built up in your house into funds you can use today, or a line of credit that will be there when you need it. Specifically designed for homeowners age 62+, it offers all the benefits of a traditional line of credit that you can get from a bank but with additional benefits — including a flexible repayment feature. 

As with any mortgage, the title to the home remains in your name, not the lender’s. As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance and keeping your home in good condition. (or good shape, or maintenance).

At a minimum, to be eligible you must be 62 years of age or older; you must have a certain percentage of equity in the home, and the house must be your principal residence. For more information, visit our eligibility page.

The amount that is available generally depends on four factors: your age, the current interest rate, the appraised value of the home, and government-imposed lending limits.

A reverse mortgage has certain advantages over other types of home equity-based loans. If the loan balance exceeds the value of your home when the loan is repaid, you and your heirs are not responsible to pay the excess. As long as you satisfy your loan obligations, which include maintaining your home, paying your real estate taxes, property insurance. 

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