3 Problems a Utah Reverse Mortgage Can Solve For You

20 Mar
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3 Problems a Utah Reverse Mortgage Can Solve For You

  1. Burdensome credit card debt or other consumer debt: By borrowing a lump sum or using a line of credit with a Utah reverse mortgage, homeowners can pay off or consolidate debt and eliminate the monthly payments on that debt. Unlike a traditional HELOC (Home Equity Line of Credit), with a reverse mortgage, there is no monthly loan payment*
  2. Current home payment is too high: It’s good to compare a traditional refinance with a HECM (Utah Reverse Mortgage/Home Equity Conversion Mortgage). Your monthly payment can be potentially lowered through a rate reduction in a traditional refinance, but with a reverse mortgage your monthly cash flow is greatly increased by eliminating any monthly payment on the debt.*
  3. Increased payments on lines of credit: With rising interest rates, many elderly borrowers who have taken out traditional home equity lines of credit, will start to see rising monthly payments. A Utah Reverse Mortgage can potentially be used to pay off the existing line of credit and/or any other liens on the home, and not have to make a monthly payment to pay it back.*

 

3 Problems Reverse Mortgage Lenders Can Solve for Borrowers Right Now

 

*If you qualify and your loan is approved, a Reverse Mortgage must pay off your existing mortgage(s). With a Reverse Mortgage, no monthly mortgage payment is required. Borrowers are responsible for paying property taxes and homeowner’s insurance (which may be substantial). We do not establish an escrow account for disbursements of these payments. Borrowers must also occupy home as primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan must be paid off when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, or does not comply with the loan terms. A Reverse Mortgage increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan). These materials are not from HUD or FHA and were not approved by HUD or a government agency.

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