A reverse mortgage can be a useful tool for retirement, but it is wise to consider your short- and long-term goals before applying. Many lenders offer free reverse mortgage quotes to help you decide whether you are a good candidate. Consider your qualifications before applying so you understand why you’re given a particular quote.
Value and Equity
Reverse mortgage quotes are proportional to the value of a home. Therefore, the more your home is worth, the more financing you are eligible to receive. Since reserve mortgages utilize the equity of your home, equity is also considered in the quote. Just like your home’s value, you have more access to financing when you have a greater amount of home equity.
Age
The age of the borrower also influences reverse mortgage quotes. You must be at least 62 years old to qualify for the loan, but older borrowers are eligible to receive more financing than younger borrowers. If more than one borrower is on the loan, the loan amount is based on the age of the youngest borrower.
Income
Your lender needs proof that you are capable of fulfilling the obligations of the loan. For example, even though you will no longer have mortgage payments, you are still responsible for paying property taxes and homeowner’s insurance. If your monthly income is less than a certain threshold, your lender may decide that a reverse mortgage loan is not right for you. Though this type of loan can provide relief in certain financial situations, it could cause more problems for you in the long-run. In this case, your lender will recommend better financing options for you.
Reverse mortgage quotes help borrowers determine eligibility, but it is always wise to talk to a lender before applying. Lenders can explain the quote in more detail and determine whether a reverse mortgage is the right financing option. Visit the website for more information.
