Lakewood is also called  “an Instant City”, this is due to the fact that in the space of 10 years from 1950 to 1960 lima bean fields transformed into the city that we see today. The city is home to over 80,000 Americans, many of which are senior citizens.  Lakewood is often called the best example of an American suburb created after World War 2.

Keeping in line with the tradition, the city is now becoming the hub of reverse mortgage. Reverse mortgage in Lakewood is still a growing concept. The fact that it is specifically designed to cater to people over 62 has enhanced its popularity with senior citizens.

Understanding Reverse Mortgage

The term reverse mortgage is basically used to describe a mortgage that is granted based on the equity that is present in your home. In most cases reverse mortgage is less than the total equity worth of your home. Unlike most other mortgages, owing to the age of the borrower, there is no monthly repayment plan drawn up for the mortgage, although the borrower must remain current on property taxes, insurance and maintenance of the home. Instead, the loan is repaid once the house is sold off.

There are certain rules regarding the sale that will be followed:

  • The home is not sold as long as the borrower and their spouse are alive and current on property taxes, insurance and maintenance.
  • The ownership of the house during this time is with the borrower and they will be making payments for insurance and property tax and maintenance of the home.
  • All proceeds of sale once the mortgage amount and accrued interest has been deducted is given to the heir of the borrower.
  • If the proceeds of sale are less than the mortgage amount lent, the lender will bear the brunt, not the next of kin of the borrowers.

If you want information 0n a reverse mortgage in Lakewood, contact us today!

This material is not from HUD or FHA and has not been approved by HUD or a government agency.

As with any loan there are risks associated with a reverse mortgage.  The right to remain in your home is contingent on complying with reverse mortgage loan terms and it is possible to lose your home if you do not comply with the terms of the reverse mortgage such as keeping current with property taxes, insurance and maintenance costs.