As the Baby Boomer population gets older, millions of Americans are finding the struggle to keep up with the rising cost of living difficult. For homeowners, concerns about security and being able to maintain their homes may arise. If you’re in the over-62 crowd, you may have heard the term “reverse mortgage” and wondered if it could help you in your golden years. But the questions and myths surrounding reverse mortgages can be tricky to wade through.
Fortunately, at Liberty Title, we’re experienced working with reverse mortgages and can help you with the closing process. We’ve put together this guide to explain a reverse mortgage and help you determine if it’s a good fit for you.
Understanding a Reverse Mortgage
To decide if a reverse mortgage is right for you, it’s important to first understand what it means. For homeowners in their senior years, a reverse mortgage is a mortgage option that allows you to stay in your home and receive supplemental income payments. It allows you to take the equity from your home and convert it into cash payments that you can live off of for the rest of your life.
In exchange, you agree to relinquish the rights to your home after you no longer live there. You won’t have to worry about making regular mortgage payments, and you’ll actually get a check to live off of. The only downside is that your property will revert to the bank once you no longer live there.
Knowing if You Qualify
The qualifications for a reverse mortgage are pretty straightforward. You must be a homeowner, and during the time of your reverse mortgage, you’ll need to remain current on your property taxes. You’ll also have to continue paying anyone Homeowner’s Association dues.
Here are a few more eligibility criteria:
● The home must be your primary residence.
● The home may not be a rental or vacation property.
● You must meet with a HUD counselor.
● You must have at least 50% equity or own the home outright.
Help With Your Minnesota Reverse Mortgage Closing
If you’re a Minnesota senior looking for a way to supplement your retirement income, a reverse mortgage could be the answer to your problems. At Liberty Title, we offer a wide range of services including help with the closing process on your reverse mortgage.
Our experienced title abstractors and legal support team provide caring and sympathetic support throughout the process. Call us at 763.494.0340, or contact us to find out more about how we work to protect homeowners.