If you’re looking for a Colorado reverse mortgage, you have a number of important choices ahead of you. You’ll need to be a senior of at least 62 years of age, and you’ll need to own a home with at least some equity established. If you meet these requirements, there’s a good chance you’ll qualify for a reverse mortgage.
These loans allow seniors who own homes to tap into their home equity in a way that allows them to apply their wealth toward their own living expenses. Many seniors have done just this with reverse mortgages in Colorado. When you take out a mortgage of this type, your lender pays you money out of the equity of your home. This money arrives in your bank account as spendable cash.
You can apply these funds in any way you want. You can use them for major financial purposes such as paying off other mortgages or debts, or you can simply use them to pay for your living expenses. You can also spend the funds on more expensive things such as vacations and medical costs. It truly is your money, and you can spend it in whatever way you desire. For more reverse mortgage information, continue reading and check out the other resources available to you on this site.
Your lender will distribute the money to you in one of the following ways.
In exchange from providing you with money, your lender will take control of an equivalent amount of your home equity. As time goes by, more and more of your equity will transfer to your lender. Your lender will cease providing payments to you once the equity is depleted. Once this occurs, you can go on living in your home free of charge for the rest of your life. Your lender does not own your home and never will. Your lender only owns the equity.
When you die, your heirs will have to pay back the full amount of this equity if they wish to keep the home that you pass on to them. Most likely, though, your heirs will decide to sell the home to pay back the mortgage. Your lender cannot collect more money than what the home is worth at the time of the sale, even if your reverse mortgage amount was higher. This guarantees you that your heirs won’t have to pay for any debt beyond the money they would get from your home.
You can find answers to many common reverse mortgage questions on the HUD’s Frequently Asked Questions page. Feel free to contact one of our trusted lenders to get more information as well.
Every lender you contact for your reverse mortgage will be willing to give you advice and assistance to help you understand the loan better. But sooner or later you’ll need to decide whether you want to pursue a reverse mortgage or not, and if you do, you need to pick a lender to fund the loan. Check the mortgage rates that different lenders offer and work with the one who offers the lowest rate.
Find out what fees your lender will charge, too. Origination fees and closing costs can add up to a lot if you’re working with an expensive lender. Make sure you don’t pay more money than you have to. Research local lenders in Colorado and contact as many as you can to get quotes. You can also read through our reverse mortgage checklist for additional information on how to apply for a reverse mortgage.
Denver, Colorado Springs, Aurora, Lakewood, and other cities are popular destination in Colorado and host many retirees and seniors who have chosen to escape the big city life and experience nature. Colorado is known for its natural beauty and for the Rocky Mountains, the most famous and impressive mountain chain in the nation.
If you’re a senior and you love natural beauty and scenic views, Colorado is a great state in which to retire. A reverse mortgage can help you secure the income you need to do so.
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