The new breed of reverse mortgages allow for higher loan amounts and lower fees but may charge higher interest rates.
Reverse mortgages allow homeowners,
- 62 and older to convert home equity into income, with the lender paying out via a lump sum,monthly payments or a credit line. When the house is sold,the lender is paid back with interest.
- With a typical reverse mortgage, the homeowner never owes the lender more than the value of the home. More lending institutions are getting comfortable with reverse mortgages and offering more variety so more choices are available. There are more resources and more products.
This allows you to set aside a portion of your home's equity to be preserved for your heirs. The fees charged are a lower percentage of the home's value than those charged on traditional reverse-mortgage loans,but the interest rate on the bank's new product is generally higher. There is an older generation that believes in paying off the mortgage and having the home free and clear, but boomers have used home-equity lines of credit their whole life. They are more likely to see their home as a financial resource.
To receive a free list of "Houses for sale in Washington DC",please don't hesitate to give me a call at your earliest convenience. I can be reached at (202) 378-0283 (Direct) or (301) 560-6700 x1154 (Office). Thank you very much. Looking forward to working with you and helping you make your home purchase a stress free and very happy one. Lanre Folayan - Real Estate Professional - Exit Premier Realty. "Buy and sell a home in Washington DC"
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