A reverse mortgage is a great way to tap your invested equity in your home and use it to spend the end days of your life peacefully. This product, reverse mortgage, is only designed for the elders who have taken retirement from work and are 62 years old or above. Most borrowers do not know anything about a reverse mortgage and are only interested in receiving monthly payments. On the other side, reverse mortgage lender expects that the borrower to know certain things in advance. Here we have listed those three things that a borrower must know.
Homeowners Will Be Required to Pay Dues of Their Property
The reverse mortgage lender is extending you the monthly payment, but in return, the lender wants that you do not default on the dues of your property or any other dues collected by the community for the maintenance of the surroundings of your home.
Taxes Are certainly to Be Paid by the Borrower
Most homeowners mistakenly believe that by purchasing the reverse mortgage, the lender becomes the owner of the house, so the taxes will be paid by the lender and not the borrower. We want to inform you that this is not the case. The lender will only become the owner after the death of the homeowner. This is why you have to pay the property taxes on time until you die.
Reverse Mortgage Lender Cares About the Condition and Maintenance of Your House
Your home is the collateral of the lender, and they have extended you the loan or monthly payments on the basis of the value of your home. This is why the lender would require that the borrower must maintain the home in the same condition as it was at the time of appraisal. A lender obviously does not want the value of its collateral to decline.
Longbridge financial is a reverse mortgage lender that specializes in HECM loans and is approved by the Federal Housing Administration (FHA). It operates in 46 states and is committed to providing financial peace of mind to the elder generation. For more information, you can call them at their toll-free number: 855-523-4326.