If you are 62 or older, own your home and are looking for increased cash flow during life’s later years, it’s worth considering a reverse mortgage. Before you move forward you should understand how reverse mortgages work, the different types and how to qualify. Our partners at ConsumerAffairs researched the best reverse mortgage lenders in Tallahassee so you know where to apply.
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How to choose a reverse mortgage lender in Tallahassee
A reverse mortgage in Tallahassee allows you to convert your home equity into tax-free cash. You maintain the title to the home and get a lump sum or monthly tax-free payments from a lender. The loan doesn’t have to be paid back as long as you live in the home.
In Tallahassee, where about 10 percent of the population are seniors and home values are trending upward, older homeowners supplement their incomes with reverse mortgages and use the funds for a variety of purposes. Here are some of the most common:
Paying off a small remaining forward mortgage
Paying down credit card debt
Paying medical bills
Covering monthly expenses
Remodeling a home
Paying for long-term care needs
How to qualify for a reverse mortgage in Tallahassee
To qualify for a reverse mortgage in Tallahassee, you need to be at least 62, own your home entirely or have a low remaining mortgage balance, use the home as a primary residence and be able to continue paying property taxes and insurance.
The amount you can borrow depends on your age, current rates, your financial circumstances and the value of your home.
There are several different types of reverse mortgages in Tallahassee: Home Equity Conversion Mortgages (HECM), proprietary reverse mortgages and single-purpose reverse mortgages.
Types of reverse mortgages in Tallahassee
Most popular type; government-insured; multiple payment plans; guidance from HECM counselor; use funds as you wish
Privately funded; loans can exceed HECM limits; best for high-value homes; money available as lump sum; use funds as you wish
Funded at state or local level; applicants with low or moderate incomes can qualify; funds only available for single purpose
Shop for a reverse mortgage from different lenders to get the best deal. Compare all fees and costs (e.g., interest rates, origination fee, appraisal fee, closing costs, servicing fee, mortgage insurance premium) and the quality of customer service from different lenders before signing.
Also, it’s important to involve heirs in your decision-making process, as a reverse mortgage will affect their inheritance. Most reverse mortgages are paid back once the principal borrower dies, leaving it to heirs to either sell the home to satisfy the loan or pay it back by other means.
This award-winning company prides itself on a 97 percent customer satisfaction rating from in-house surveys. American Advisors Group offers HECMs and an expert staff to assist with the process every step of the way. Customers say that although sometimes the process takes longer than they had hoped, it works out in the end and is well worth the wait.
This top-ranking reverse mortgage lender makes it a priority to earn and keep your trust. Finance of America Reverse has plenty to offer: lump sum, tenure payment and line of credit options; an average closing time of 30 days; and award-winning customer service. According to customers in Tallahassee, if you’re unsure of what something means, the team at FAR will go out of their way to explain it to you.
As one of the country’s largest reverse mortgage providers, Liberty Home Equity Solutions has worked with more than 50,000 seniors since 2003, and all of that experience has led to their reputation as industry experts. Offering HECMs and a promise to match or beat all competitors, this lender is an industry favorite. Customers say they love the responsiveness and personal attention provided by Liberty Home Equity Solutions representatives.
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