What is a "Reverse" Mortgage

Reverse mortgages are a relatively new concept in mortgage loans that allow a Tampa Florida property owner to get a steady income stream from that property. A reverse mortgage requires no repayment as long as the home is owner-occupied and other stipulations are met.

Reverse mortgages are federally insured by the “Home Equity Conversion Mortgage” program or by “Fannie Mae’s HomeKeeper”, and allow a Tampa Florida property owner to get cash from his or her built-up equity for personal reasons, either as a lump sum or in monthly payouts.

Reverse mortgages are what is known in the industry as “non recourse loans”. This means that the mortgagor took the loan with the security of the property alone, and in attempting to recapture his investment he has no recourse for recapture beyond it.

This type of mortgage gets its name from the fact that, unlike a normal mortgage where the balance due is slowly paid down, the mortgage balance on a reverse mortgage continues to grow becoming larger and larger as the mortgagees receive funds from it and pay nothing into it. Thus the term "reverse mortgage." Eventually, either all the equity in the Tampa home will be exhausted or when the final owner of the home is deceased, a final settlement is made on the real estate property leaving to the heirs of the owners whatever residual equity remains.

This type of mortgage carries fees which are peculiar to it and not generally found in normal real estate mortgages.  These fees may include administration and servicing fees, "equity sharing fees” and “maturity fees”.

For an AARP estimate of how much money be be available to you by putting a reverse mortgage on your Tampa Florida real estate property, Click Here

    Not all mortgages are equal, but this is especially true with reverse mortgages. When considering this type of loan, it is wise to retain the advise of a lawyer familiar with these types of mortgages as well as a competent Tampa real estate professional like those here at Red Shoe Realty to review for you the mortgagor’s disclosures under the Federal Truth-in-Lending Act and to assure you that this is a good move for you to make.

    I invite you to request my free Tampa real estate Information Package or call me today for more information on the friendly, sunny Tampa Bay Florida lifestyle that exists 99.99% of the time.