Georgia Reverse Mortgages
Georgia reverse mortgages are being used to supplement retirement income for many senior homeowners living in Georgia. Even though Georgia reverse mortgages have been available for over 20 years, there has been a sharp increase in the use of this financial product in recent years. In 2007, there were 1,521 federally insured HECM (Home Equity Conversion Mortgage) loans closed in Georgia.
Unlike a traditional mortgage loan or home equity line of credit where you borrow money and make monthly payments, with Georgia reverse mortgages the payment stream is reversed. You never make a mortgage payment for as long as you live in your home. Once the last homeowner permanently leaves the home, the loan then becomes due through either the sale of the home or refinancing of the mortgage. If there is excess equity after the reverse mortgage loan is paid off, your estate or your heirs receive the balance.
Reverse mortgages in Georgia allow you to retain title to your home and still leave your home to your heirs. Obtaining this kind of loan does not negatively impact your Social Security or Medicare benefits. You are allowed to use the money from Georgia reverse mortgages in any way that you choose and it is Tax-Free.
Do You Qualify?
In order to qualify you must have substantial equity in your home. Equity should be at least 40 to 50%, depending on the youngest borrower’s age, the current interest rate, and the value of your home. If you want to take a quick check to get an idea if you will qualify, try our reverse mortgage calculator. The calculator results are strictly an estimate and may not represent the exact loan amount that you will receive.
The other main qualifying ingredient is that all owners on the title to your home must be at least 62 years old. Your loan amount is largely dependant upon the life expectancy of the youngest homeowner as well as your home’s value.
After checking to see if you have enough equity in your home to qualify, you will want to get your own personalized evaluation for Georgia Reverse Mortgages here. This summary will be tailored to your specific property details and location and will show you a comparison between several different Georgia Reverse mortgages that you are eligible for.
