Reverse Mortgages – How it Works!
Reverse mortgages are a product that allows a homeowner to borrow money against the equity in their home and, the borrower does not have to begin repaying the loan, or any interest on the loan until the home is sold, or until the owner of the home passes away. This type of mortgage is generally used in retirement, and requires the borrower to own their own home, and be at least 55 years of age. Also, the borrower’s credit score does not affect their ability to receive a reverse mortgage, as they will already have the home equity that will be used to later repay the loan.
How It Works
Let’s say you own a home valued at $600,000. A reverse mortgage lender gives you $150,000 with an interest rate of 5% and leaving you with $450,000 in equity, assuming you don’t have any other mortgages on the home. The annual interest rate will be $7,500 ($150,000 x 5%). At the end of the year, the new mortgage balance will be $157,500 ($150,000 + $7,500) and the new amount of equity will be $442,500 ($450,000 – $7,500).
How Alpine Credits Can Help
Do you have a reverse mortgage that isn’t permitting you to take out as much money as you need?
At Alpine Credits, if you have a reverse mortgage, but wish to acquire additional financing to better fit your needs or changing situation, we can offer you a home equity loan. This loan will use the remaining equity in your home as collateral and may be the solution you need to help finance your retirement plans.
If you think this loan would be right for you, Alpine Credits can help by offering you a home equity loan so you can start enjoying your retirement today. If you own your home, you can apply in two simple ways: complete our online application or speak to one of our lending specialists at 1-800-587-2161. Our lending specialists will work with you to understand your situation and recommend the best loan structure for your needs.