What Can I Use a Reverse Mortgage For?
Do you need cash? Do you have a lot of equity in your home? Approved Cash can help you get a reverse mortgage.
What is a Reverse Mortgage?
A reverse mortgage is exactly what it sounds like — a mortgage paid to you, the homeowner. Essentially, you put your home up as collateral. In exchange, the lender hands you an amount of money equal to the value of your home.
When you move or pass, the proceeds of your home sale are used to pay back the lender. If your home appreciates in value and exceeds the loan balance and any additional costs, the proceeds go to you — or to your estate if you pass away.
You can get a reverse mortgage one of six ways.
- Lump sum: You receive all of your proceeds at once. Lump sum reverse mortgages interest rates are fixed (interest rate doesn’t change throughout the term of the loan). All others are variable (the interest rate changes with overall interest rates).
- Tenure plan: You receive fixed, steady payments for as long as you live. This is essentially an annuity.
- Term payments: The lender pays you fixed monthly payments for a defined length of time, such as 10 years.
- Credit line: You can borr
- Tenure plan + credit line: You get both the annuity and a credit line.
- Term payments + credit line: You get both steady monthly payments and a credit line.
Should I Get a Reverse Mortgage?
Reverse mortgages sound a lot like home equity loans, so why get the former over the latter?
Well, if you don’t care about your home becoming part of your estate when you pass away, then the reverse mortgage would be the better option.
What Can I Use a Reverse Mortgage For?
You can use a reverse mortgage for anything, although, as with any kind of debt, some uses are better than others. Potential uses of a reverse mortgage include the following.
- Debt consolidation
- Home improvements
- Investing in other assets
How Do I Get a Reverse Mortgage?
First of all, you must be at least 62 years old, and your home must be your principal residence. Additionally, most reverse mortgage lenders require you to have at least 50% equity in your home — although standards vary by lender.
When you’re ready to get your loan, you can contact a lender about a reverse mortgage. The easiest way to do so would be to submit a request on Approved Cash, specify that you want a reverse mortgage, then give us the relevant loan information. Our system will match you with a local lender within 24 hours.
Once you’re matched, and a lender contacts you, it’s time to iron out the details. Provide all the relevant documentation and finalize your loan terms. Your lender will send the loan funds to you in the using whichever method of disbursal you specify.
What Do I Need to Bring Get a Reverse Mortgage?
You’ll need to give your lender several documents and pieces of information to close on your reverse mortgage.
- Bank statements: At least two month’s of bank statements.
- Documentation for all assets: Documentation for investment accounts, retirement accounts, bank accounts, pension plans, annuities, etc.
- Documentation for your current mortgage: If you still have a balance on your mortgage, make sure to bring documentation saying so.
- Driver’s license or state-issued ID
- Homeowner’s insurance policy
- Property tax receipts
- Property title or deed
- Reverse mortgage counseling certificate
- Social Security awards letter
- Social Security card
Why Should I Get a Reverse Mortgage Through Approved Cash?
Comparison shopping for reverse mortgages takes time and effort. Approved Cash handles all that for you, finding licensed lenders in your area with excellent reverse mortgage options.
All you have to do is fill out our loan request form (on our homepage) with your name, contact information, and loan details (type and loan amount). Our site will handle then match you to a local lender automatically — and your lender contacts you within 24 hours.
We only give your reverse mortgage request to 3 lenders. All of them will be in your local area. By doing this, we ensure that you won’t get bombarded with calls — yet your lenders will still have to compete with each other for your business.
Ready to Get a Reverse Mortgage? Submit a Request on Our Site and GET APPROVED TODAY!
Requests will not affect your credit score.
Home improvement loans