If you’re a senior citizen that has a very limited income, now that you’ve retired, if you own a home or have a very low mortgage rate with a great deal of equity, you may be able to increase the amount of money you receive for monthly income through a Reverse Mortgage in Chesapeake. There’s a number of things that have circulated around about reverse mortgages that just isn’t true. However, a reverse mortgage can be very beneficial if you have no other way to increase your monthly income to meet with your growing expenses.
The first thing to understand is that a reverse mortgage is not going to cost you your home. If you get a reverse mortgage, you will be permitted to keep the home so long as you live in it. Where reverse mortgage lenders make their money is when the house is sold. However, if you plan on living in the house until you die, a reverse mortgage is an excellent way to cash in on the equity you have on your home.
Basically a reverse mortgage pays you for the equity you have in your home. That means that depending on the value of your home and the equity you have in the home, you can receive a fairly substantial amount of money each month from a reverse mortgage lender. However, it’s important to understand that the cap for reverse mortgages is $625,500. A lender will be prohibited by law in offering you more than this for a reverse mortgage.
It’s also important to understand that reverse mortgages can be fairly expensive when it comes to the interest and fees that are paid. That’s why you’ll need to carefully consider whether this is the right decision for you. If you’re looking for extra money to meet your monthly expenses, this can be very beneficial. However, if you’re looking for money to purchase a new car or go on a dream vacation, you might want to consider another option.
You can have some of the myths about reverse mortgages dispelled and eating get the information you need to decide if this is right for you.
