Reverse Mortgage Virginia Beach advertisements are everywhere, leaving homeowners wondering what this is, how it works, and if this is an option that could benefit them. Each month, a homeowner pays the amount due towards their mortgage. Typically, they make monthly payments for 5, 10, 15, or 30 years. At the end of their fixed term, the home is paid off and they own it free and clear to do with as they choose.
With Reverse Mortgages Virginia Beach, the money that the homeowner paid towards their house, known as equity, is paid back to them on a similar schedule. This means that the bank, or the lender, is actually buying the homeowners house back from them. This is an option many seniors turn to to help make ends meet. They get a monthly payment back from the bank or lender that they can use for their electricity bill, grocery costs, medical expenses, and more. At the end of the term, or in the event of the homeowners death, the bank will own the home or a portion of the home’s value. The person who inherits the estate can sell the rest of the property or purchase it back.
The amount of money a senior can get depends on their age, the value of their equity, current interest rates, and market value. Traditional homes, manufactured homes, and two to four unit properties currently all qualify for Reverse Mortgage Virginia Beach programs. If a person chooses, they can get the money in one large lump sum instead of smaller monthly payments. It is also important to note that a person who applies must be 62 years of age or older.
There is a monthly fee for this type of service, and social security and medicare benefits are not affected by this program. Everyone who applies will have to go through an independent third party counseling program to make sure they understand all aspects of the program. According to the United States government, this program is also not intended for those who plan to live in their home for less than 5 years. It is also important to note that the home does not have to be paid off before a senior applies to the program.
