A Pennsylvania reverse mortgage can help you retire securely with the income you need to live well if you’re over the age of 62 and you own a home in the state. This is about the extent of the qualification requirements for this loan type, making it a swift and simple financial solution for seniors everywhere.
There are few financial options available to seniors who wish to transform their home equity into spendable cash. A reverse mortgage is one of the best ways to do it. Reverse mortgages in Pennsylvania are used by many seniors to secure income for retirement.
It’s easy to understand how these loans work. Your lender takes over control of the equity in your home and pays you for it each month or in a lump sum. This is why these loans are called reverse mortgages. Your lender is paying you instead of the other way around. The money you receive is technically your own home equity, transformed into a liquid form that can be spent on anything you want or need. Use it to pay for medical costs, a nice vacation, other debts, or simple day to day expenses. To learn more about how these funds are dispersed to you, read our reverse mortgage information page.
You can get the money from your lender in a number of ways.
Your lender will own the equity in your home during and after the reverse mortgage. This knowledge scares some Borrowers, who fear that they will lose their homes once the equity turns out. This is not the case. Your lender does not own the title or deed of the property and cannot repossess the home. You don’t need to worry that you’ll lose your home. This can’t happen through a reverse mortgage.
You don’t have to pay the loan off during your lifetime unless you want to sell your home or move to a new home. If you choose to do either of these things, your lender will need to collect on the amount of the equity that is owed. But if you continue living in your home for the rest of your life, you won’t have to pay back any of the debt.
Your heirs will be responsible for paying back the reverse mortgage when you pass away. This is usually done through a sale of the home. Lenders cannot collect more than what the home sells for, even if the property has decreased in value and doesn’t account for the full amount of the debt owed.
If this seems confusing to you, don’t worry. It can be confusing the first time you encounter it. Read through the HUD’s Frequently Asked Questions list to gain answers to any questions you may have.
No two lenders offer the same loan terms and options, but many, if not all, lenders are willing to administer reverse mortgages. You have to be careful, though, because many lenders will charge you very high fees simply for the right of accessing your own home equity. There are closing costs tied to every loan, of course, but try to find a lender who will charge you a fair price.
The best way to do this is to compare multiple lenders in your part of Pennsylvania. Ask them what rates they offer and what fees they charge. For more information on how best to do this, read our reverse mortgage checklist.
Pennsylvania, known as the Quaker State, is home to fifty Fortune 500 companies. It is a leader in financial and insurance industries. Philadelphia has eight Fortune 500 companies, and Pittsburgh has seven Fortune 500 companies. This gives you an idea of the cultural significance of the state.
Pennsylvania is also known for its beautiful rural areas and lush forests. The largest and most populous cities in the state of Pennsylvania include Philadelphia, Pittsburg, Allentown, Erie, Reading, Bethlehem, and Scranton, and these regions are popular destinations for retirees. Reverse mortgages are common and helpful financial options for those who wish to spend the best years of their lives in this beautiful state.
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