The Mississippi reverse mortgage is a financial tool that seniors over the age of 62 who own homes in Mississippi can use to transform their home equity into money that can be spent on daily purchases or other bills. You don’t need much equity to qualify for a reverse mortgage. You need just enough to pay off your current debt and give you the spending money you need to retire securely.
What is a reverse mortgage?
These mortgages are exclusively offered to seniors, as mentioned above, and enable participants to receive money from their home equity from their lender instead of paying a lender to buy home equity. Whether you choose to take out all the money up front as a lump sum or receive it bit by bit over the course of several years or decades is up to you. Reverse mortgages in Mississippi can be customized in many ways to meet your financial needs and support your plans and goals for the future.
How can reverse mortgage funds be used?
A reverse mortgage can eliminate your fears and uncertainties about the future by giving you a steady source of income that you can use to pay off debts, pay for day to day expenses, and cover medical bills. You can use the money for anything. The lifestyle you choose to live is entirely up to you. You won’t have to pay to live in your home any longer, either.
What types of reverse mortgages exist?
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.
Who can get a reverse mortgage?
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.
What costs are associated with a reverse mortgage?
There are several costs associated with securing an HECM reverse mortgage in Mississippi, including but not limited to:
How will I receive my funds, and for how long?
Your lender can provide your money to you through one of several different payment arrangements.
You can combine any of these methods to create a flexible payment plan that fits your lifestyle and financial goals.
Your lender will never own your home. You don’t need to worry about it being repossessed. The lender takes ownership of the equity in your home and nothing more. You can live in your home debt free as long as you want to.
Does the equity need to be repaid?
Not until you move or pass away. When you pass away, the debt will transfer to whoever takes ownership of the home through your will. This individual can then sell the home to pay back the reverse mortgage debt. In some cases, an heir will elect to keep the home. This is possible, but the heir will need to refinance the mortgage and pay it off as with any other loan.
Mississippi Reverse Mortgage Lenders
It’s not enough to simply contact a lender and ask for a loan. You need to do some research. Contact four or more lenders in Mississippi and ask them what fees they charge to administer a reverse mortgage. Each one will quote you a fee and the mortgage rate they offer. Compare their responses and work with the lender who can offer you the best price on your loan. Read more about how to do this in our reverse mortgage checklist.
Mississippi Senior Resources
Mississippi's Aging and disability resource centers have programs in certain counties. They include caregiver, meal, transportation, legal, and medical assistance, as well as other services that enable seniors to continue living independently at home. To find the nearest center to you, consult the area map.
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