You can find a Montana reverse mortgage without any trouble at all if you’re a senior over the age of 62 and you own a home. You’ll need to prove that you have some equity built up in the home, enough to cancel out any other debts on the property. If this describes your financial situation, a reverse mortgage may be an excellent option for you to pursue. You can use this loan type to access the money you need to retire securely.
In a reverse mortgage, the lender pays equity out of your home to you in the form of cash, instead of the other way around. The amount of money you’re able to receive through your reverse mortgage is entirely dependent on how much equity you have in your home when you take out the loan. Most seniors over the age of 62 who own homes will qualify for reverse mortgages in Montana without any problems.
The money you receive through this reverse mortgages belongs to you unequivocally and may be spent on anything you wish to spend it on. Many seniors choose to use this money to pay for retirement expenses such as medical bills, property taxes, vacations, and other costs.
Reverse mortgages have three forms:
The most common source is the FHA HECM reverse mortgage, which is insured by the Department of Housing and Urban Development (HUD). This article will focus on HECM reverse mortgages.
Homeowners aged 62 and older who own their home outright and have most of their mortgage paid off. If the current mortgage is not paid off, the initial reverse funds or some combination with out-of-pocket cash must be used to deplete the remaining balance. Credit score is not a qualifying factor.
There are several costs associated with securing an HECM reverse mortgage in Montana, including but not limited to:
In this type of loan, your lender becomes the owner of the equity in your home and provides you an equivalent amount of money, minus fees, in return. This money can be provided in any of several ways.
If none of these options seems fitting for your financial situation, you can choose to customize your own equity payout arrangement with your lender. Funds will be given until equity runs out.
Your home will always belong to you unless you move or decide to sell it. Only then will equity become due. When you pass away, the obligation of paying back the reverse mortgage will transfer to whoever inherits the home. Your heir or heirs can simply sell the home and give the money to your lender to pay back the loan.
Before you decide to pursue a reverse mortgage, find a lender who can service your loan affordably. Reverse mortgages often come with high fees attached. Do as much research as possible to find the lender who offers the lowest mortgage rates and the lowest fees. This will allow you to take advantage of as much of your home equity as you can.
For more information on finding the best mortgage rates and applying for a reverse mortgage, read through our reverse mortgage checklist.
Montana is very friendly to retirees and offers its own state sponsored reverse mortgage program, the Reverse Annuity Mortgage. This program offers seniors more independence and income while they continue to live in their homes. There are no location restrictions so the program is available in Billings, Helena, Bozeman and beyond.
Are you a mortgage or real estate professional?