The Reverse Mortgage (HECM) program Colorado continues to help millions create the life of their dreams as they retire and relax into this time of their lives. Seniors age 62 and over are eligible for this type of loan. Regardless of the type of reverse mortgage you get (traditional, line of credit, or reverse mortgage for purchase) the main advantage is the relief from monthly mortgage or loan payments, but the borrower will still have some responsibilities, including a small amount of financial obligations.
Here are the four main commitments borrowers of a reverse mortgage will continue to be required to take care of:
A reverse mortgage is like other conventional loans requiring the holder to purchase and maintain homeowners insurance. There are many options out there to be discussed with both the reverse mortgage counselor and the lender.
This too is the same as with a conventional loan. The reverse mortgage homeowner will need to pay the property tax. Depending on your financial need, assistance may be available to help pay or defer property taxes. Your reverse mortgage specialist and your local human services office would have more information about such assistance.
Your home remains in your possession, so the maintenance of your home remains your responsibility. If you are thinking of selecting the reverse mortgage in the form of one lump sum bear in mind you need to allocate funds for future maintenance needs. This too is an excellent point to discuss with your reverse mortgage specialist or counselor. Any applicable HOA fees also remain the responsibility of the borrower.
All utilities, such as electricity, gas, water, and trash will remain the borrowers responsibility.
Reverse mortgage is an individualized, specialized loan for those 62 and older that allows seniors to tap into the equity of their home while living mortgage and loan payment free. The funds can be accessed via a lump sum, line of credit, monthly installments, or even to purchase a home. If you are planning ahead let your specialist guide you creatively to suit your needs and desires.
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado. Contact Jan and learn if reverse mortgage is right for you.