But even with information in hand, you need to be cautious. Like other lenders offering reverse mortgages, you’ll need to contact AAG to request an information kit to get started. How AAG compares to other reverse mortgage lenders If you’re interested in a reverse mortgage, read the fine print carefully and consider hiring a lawyer to go over the contract and explain any important fine print. In some cases, even being late on your payments can put your home at risk.Īlso be advised that in 2016, AAG paid a $400,000 penalty after the Consumer Financial Protection Bureau alleged that it falsely advertised its products as too safe, claiming that customers would have no monthly payments and couldn’t lose their homes. Like other types of reverse mortgages, you can lose your home if you don’t continue to pay your property taxes and home insurance on a HECM. But that still doesn’t make it risk-free. Depending on how much equity you have built up, you may not have to make mortgage payments.Ī home equity conversion mortgage (HECM) is the only type of reverse mortgage that is both approved by the FHA and HUD and insured by the federal government. If you’re looking to downsize, you can use this type of reverse mortgage to move into a smaller home. If you own a high-value home, a Jumbo reverse mortgage allows you to withdraw up to $4 million in equity. It can be used as an emergency fund so that you don’t reduce your equity in your home if you don’t need to. This reverse mortgage type lets you tap into your line of credit whenever you need it. With AAG, you can borrow up to 60% of your available funds in the first year. With this option you get one lump sum that can be used to pay off large expenses. This is a type of government-insured reverse mortgage that gives homeowners 62 and older the ability to tap into their home equity and purchase a new home, as long as certain conditions are met. This option is best for retirees who do not plan on bequeathing the home. A tenure reverse mortgage allows you to receive monthly payments for as long as you live in the home. You choose how many years to receive payments when you sign up for the mortgage. With a term reverse mortgage, you receive monthly payments for a specific timeframe. In many cases, you may be able to stop paying mortgage payments - but it depends on how much equity you have in the home and what type of reverse mortgage you choose. You can use the money to pay off other debts or supplement your retirement, though you’ll need to keep up with property taxes and insurance. What types of reverse mortgages does AAG offer?ĪAG offers several types of reverse mortgages that let you borrow against the equity in your home. Proceeds from the sale of your home are then used to pay off the loan. Your loan also becomes due if you sell your home, no longer use it as your primary residence, neglect to pay the insurance or taxes on time or don’t otherwise meet the terms of your reverse mortgage. If your home is sold, proceeds from the sale are used to repay the amount you borrowed, and any remaining profit goes to your heirs. Your heirs are given six months to repay the loan or agree to sell the home. Reverse mortgages typically become due when you die.
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