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Borrowers are not alone when it comes to understanding reverse mortgages.
Plaza understands that a reverse mortgage can be a bit complex for
borrowers to comprehend and we are here to assist in making sense of it
all!
Put simply, instead of the borrower making a monthly mortgage payment to
the lender, with a reverse mortgage the lender makes payments to the
borrower. When they sell their home, they repay the loan. This strategy
gives senior homeowners the opportunity to tap into the equity of their
homes.
The Federal Housing Administration backs one type of reverse mortgage,
called a home equity conversion mortgage (HECM). FHA backing gives a sense
of security that your borrowers won't be stuck with a huge bill if the loan
debt is higher than the home value when they sell. This makes a HECM a
popular choice for reverse mortgage strategy.
Read more
about HECMs and how they compare with other reverse mortgages.
Find out more about reverse on our website,
and reach out to us at Reverse@plazahomemortgage.com.
Let’s explore adding this strategy as another option for your borrowers and
your business.
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