High-converting web page template for reverse mortgage companies in South Carolina

Best reverse mortgage companies Best overall: Fairway Independent Mortgage. Best for low interest rates: Longbridge. Best for customer service: Finance of America. Best reviewed: American Advisors Group (AAG) Best for owners who need cash now: Fairway Independent Mortgage.

A reverse mortgage isnʼt free money: The borrowing costs can be high, and youʼll still need to pay for homeowners insurance and property taxes. Reverse mortgages can also complicate life for your heirs, especially if they donʼt want the home or the homeʼs value isnʼt enough to cover whatʼs owed.

Your debt keeps going up (and your equity keeps going down) because interest is added to your balance every month. This can use up much or even all ─ of your equity. A reverse mortgage can limit your options down the road. Generally, a reverse mortgage must be paid back when you die or move from the home.

Taking a loan too early The earliest a homeowner is eligible to take out a reverse mortgage is age 62, but Orman considers it risky to do so. If you tap all your home equity through a reverse at 62 and then at 72 you realize you canʼt really afford the home, you will have to sell the home, she said.

Home equity conversion mortgages (HECMs) are federally insured loans backed by the U.S. Department of Housing and Urban Development (HUD) and are the most common type.

a reverse mortgage is a special type of home equity loan sold to homeowners aged 62 and older. The loan allows homeowners to access a portion of their home equity as cash. in a reverse mortgage, interest is added to the loan balance each month, and the balance grows.

A big downside to reverse mortgages is the loss of home equity. Because youʼre not paying down your reverse mortgage balance, youʼll make less profit when you sell, or limit your borrowing power if you need a new loan. Youʼll pay high upfront fees.

The problem, say advocates, is that many senior homeowners donʼt understand the fine print in a reverse mortgage. Some wrongly assume the lender will pay the taxes and insurance. But fall behind on those payments or fail to maintain the home, and the lender can foreclose.