Not Your Parent’s Reverse Mortgage!

Not Your Parent’s Reverse Mortgage!

Hey everyone, Mortgage Nerd here! So there’s a new, or fairly new, reverse mortgage product. It’s kind of like a hybrid. It’s not your parents’ reverse mortgage. That’s for sure! It’s a conventional loan with reverse mortgage mix. What you do is you’re able to reduce your monthly payment that you have right now, continue making that payment for the next 10 years, then at the end of the 10 years, you can go without making any mortgage payments if you’d like.

The mortgage interest that you’re not paying adds on to your loan amount, so it’s not free money. It’s just deferred interest. You pay it when you sell the house. You pay it when you pass away, leave it to your heirs, your heirs still inherit the property, and you still have to continue to make the taxes and insurance payments on your property and other maintenance if you have like an HOA, or anything like that (that disclaimer’s done).

So, if you want to learn more information on this new hybrid, it’s for people 55 and over, you can continue making your mortgage payment just at a lesser rate. Maybe you didn’t qualify for the regular FHA reverse mortgage or one of the other ones out, this might be the right program for you. Remember, it’s not your parents’ reverse mortgage or grandparents’. Mortgage Nerd out.