Reverse Loan vs. Conventional Loan

So how is a reverse mortgage different from getting a a standard mortgage in West Linn Oregon?

A conventional mortgage can be used to purchase or refinance a home in West Linn. The loan company lends you the money to purchase or refinance the home. In return, you promise to repay the mortgage company the funds you financed, plus interest, over many, many years.

A reverse mortgage is generally used to get cash out of your West Linn house. As opposed to borrowing to buy a house, you’re borrowing against a house which you already own. This enables you to make use of the money now for expenses, and pay off the loan once you die or sell the home.

Reverse mortgages are designed for older homeowners in West Linn who want to gain access to their home equity (the wealth held in their properties). In order to get a reverse mortgage you must be at least 62 years of age and have paid back the majority of, or all, of your mortgage loan.

Contrary to standard mortgages, reverse mortgage loans in West Linn Oregon do not require monthly payments. The interest and costs on the mortgage are added to your loan monthly balance. Ultimately, your home equity will decline as your mortgage balance increases. It’s the reverse of a traditional mortgage.

Should you be interested in purchasing a new property (as an example, to downsize or relocate nearer to family in West Linn), you may sometimes make use of a reverse mortgage for this. You’ll need a bigger down payment as compared to a standard mortgage, however, you won’t be required to make monthly payments.

Tip: It is your property. Understand what you may be putting at stake. Before you borrow against your house, make sure you understand how the loan will work. A wonderful way to test if you are familiar with the reverse loan is to explain it to a friend or family member in your own words.

Be careful with regards to a reverse mortgage in West Linn Oregon. There are a number considerations, including your age, your financial needs and desired goals, and the time you anticipate to stay in the property. Should you decide it makes sense for you to get the reverse mortgage loan, learn about all of the fees and compare interest rates before signing a single thing.