Most senior homeowners will want to access their home equity for retirement and to fund other needs without leaving their home. This is possible with a reverse mortgage, a loan that allows the homeowner to transform their home equity into cash income without having to pay mortgage every month. You could qualify if you are at least 62 years of age and have sufficient home equity you can borrow against. The reverse mortgage payout in Denver can be given as a lump sum, line of credit, or as a fixed monthly payment.
Federal regulation requires lenders to build the transaction in a way that the loan will not exceed the value of your home and you or your estate will not be responsible for paying the difference if that balance becomes bigger than your property’s value. In any case, certain factors will determine the payout you can receive when you take out a reverse mortgage in Denver. We’ve listed them here:
- Age – The older you are, the more cash there is.
- Home value – The current appraised market value of your home can determine the available reverse mortgage payout in Denver to you. A higher value means a higher payout.
- Financial obligations – Some fees could reduce the amount you will get, such as an existing mortgage balance. Consider paying that off first from the proceeds of your loan before you consider receiving the rest.
- Interest rates – The current interest rates will affect the amount of money you will get. Lower rate means higher available funds.
- Distribution type – How you choose to receive your payment can affect the amount of your loan. Often times, it is the line of credit that can give the best possible proceeds, and the lump sum could be the lowest.
You can learn more about reverse mortgage payouts in Denver by consulting with seasoned and credible mortgage broker. They could also advise you on what distribution type to take and if there are other alternatives.