Rhode Island Reverse Mortgage

The Rhode Island reverse mortgage option is one of the most effective financial tools available to seniors in the state of Rhode Island who wish to convert the equity in their homes into spendable cash.

Reverse Mortgage Rhode Island Information

Reverse mortgages in Rhode Island are designed to help seniors secure a steady stream of income for retirement.  This is the entire purpose they serve.  They are fast and simple to get.  You must be at least 62 years of age and own a home with equity built up in it.  If this is you, you’re ready to contact a mortgage lender to explore your reverse mortgage options.

The money you receive through your reverse mortgage can be spent on anything you want or need to spend it on.  It can be used to take care of medical expenses, living costs, debts, and more.  You can even use it to take a luxurious vacation if you like.  Find out more about how a reverse mortgage can benefit you by reading through our reverse mortgage information page.

In a reverse mortgage, your lender takes over the equity of your home and pays you back for it minus loan expenses.  You can choose to receive this money in a number of forms.

• You can get it all at once when the loan starts.  This is known as the lump sum option.
• You can get it on a monthly basis, in payments, as an income stream.
• You can get it as a credit line, which allows you to access the money when you need it.

If none of these is right for you, you can combine two or more of the above options to create a customized payout plan for yourself that fits with your own personal goals.

Your lender may own the equity of your home, but your lender does not own the home itself.  The title or deed remains in your name at all times during a reverse mortgage.  You don’t need to worry about losing your home, even once the equity runs out.  You can live in your home for the rest of your life without making any payments either on your original mortgage, which is eliminated by the reverse mortgage, or the reverse mortgage itself.

You don’t have to pay back the reverse mortgage debt unless you move from your home or decide to sell your house.  Your lender owns the equity in your home, which means that the lender must be able to collect on this investment if your home changes to new ownership.  This occurs when you pass away and leave the home to your heirs.  Your lender can collect the money owed on the reverse mortgage as soon as your heirs have ownership of the home.

But you don’t need to worry about sticking your heirs with a load of debt.  The lender cannot collect more money than what the home is worth, which means your heirs can simply sell the home and pay the money to the lender to eliminate the debt.  If your heirs want to keep the home, they will have to refinance the mortgage into a new loan and pay it off as with any other loan.

Learn more about this on the HUD’s Frequently Asked Questions page.

Rhode Island Reverse Mortgage Lenders

Each lender you contact will quote you a different rate on your reverse mortgage.  Interest rates and fees charged by lenders can eat away at your home equity if you’re not careful.  Many lenders charge high fees when administering reverse mortgages.

Contact several lenders in Rhode Island and ask them what rates and fees they charge.  The one who offers the best deal should get your business.  Learn more about applying for a reverse mortgage by reading the steps outlined in our reverse mortgage checklist.

About Rhode Island

In Rhode Island, over 20% of the total population is 62 years old and older.  This means at least 20% of individuals in Rhode Island are eligible for reverse mortgages if they own homes.  Providence, Warwick, and Cranston are the largest cities in the state.

With the high number of seniors and retirees in the state, great healthcare is a priority for much of Rhode Island.  Health services is Rhode Island's largest industry.  If you’re a senior and you plan to retire in this area, consider taking on a reverse mortgage as a way of obtaining the income you need.

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Lenders in: Rhode Island.