Do you know how the mortgage loan process works? We want you to be educated on the process so you fully understand step by step how we are going to get you in the home of your dreams. We have a unique tool built specifically to help you understand the mortgage loan process from start to finish!
Reverse mortgages can be used to finance an already existing home or to purchase a house that will not require any sort of mortgage payment.
Most people use reverse mortgages to just refinance in order to slash debts, put money towards healthcare costs, or even try and pay for normal expenses. However, a large number of people use these types of loans to purchase a better home that suits their needs and desires.
Reverse mortgages can be an advantageous process to buy a new home because it allows for the home to be bought from the start. This is possible because funds from the sale of the previous home are combined with a person’s personal cash flow, like gift money or savings, to then be combined with the proceeds from the reverse mortgage.
This entire process means people will have no monthly payments if the last homeowner permanently lives in the house. This is a big advantage for most people because it gives them an upfront boost of cash in order to actually buy the home upfront. The option to go through this type of process is permitted through a fixed rate or an adjustable rate format.
There are numerous types of reverse mortgages and strategies. Many of these will be used by different people based on their situation.
One option is to refinance with a reverse mortgage to pay off an existing one and get rid of monthly payments. This process means a person can boost their monthly cash flow and generally improve their quality of life since they are not having to make monthly payments. Usually, the reverse mortgage amount is based off the equity amount and the age of the youngest borrower.
Another option is to just refinance and get a lump sum of money. This makes it possible to either pay off an existing mortgage, or to just have a big amount of cash for other expenses. A person can only pay off an existing mortgage with this strategy if there is enough equity.
A third strategy is to refinance and then get a line of credit that grows. This can be beneficial because the credit line grows each year based off a certain growth factor. This can be beneficial for those who do not want a large amount of money, but want the flexibility to spend on credit on their own time. This strategy can be structured with the ability to pay off an existing mortgage, or to give a person a small amount of a lump sum for their own usage.
A final strategy is to refinance and get a monthly payment. This allows people to have a stream of income they can use to pay off other expenses or even make payments towards a mortgage. This is a good option for people who do not want to mess with a lump sum or a credit line, and just want to have a certain amount of money per month to use.
Insight Team is here to help you choose the best refinance loan option. Each client’s situation is different, so be sure to contact us so we can do an analysis for you!
After qualifying for a reverse mortgage, you may think that everything is up to you to manage. But with Insight Team, you will continue to be supported and educated on how to manage your new mortgage. The Art of Homeownership is a home ownership program that will guide you after your already have your home. We offer this so you have expert guidance at all times, always have a perfect mortgage experience and proactively maintain your home, which increases your home value over time! Contact Insight Team today to learn more about mastering “The Art of Homeownership”.