Oct 11, 2016

Reverse Mortgage In Hawaii: Some Important Things You Must Know!

As you approach your senior years it becomes very important to plan out a comfortable retirement. There must be a viable solution for this and it is the reverse mortgage. Everybody knows that a reverse mortgage is a useful retirement tool that helps in boosting your retirement income, paying off mortgage debt, other loans or even buying a home but there are many things which you don’t know about the Hawaii reverse mortgage. This post will highlight some unknown points about a reverse mortgage that will help you better understand this entire process.

This reverse mortgage in Hawaii has saved many seniors from foreclosure and having to choose between eating or taking medicines. In other words, it has beautifully balanced out the lives of many seniors. But, before you apply for this Hawaii reverse mortgage, it is important to know its every little detail so that there is no chance of confusion in near future. Get to know what these points are and how they are important:

Let’s Start With Reverse Mortgage Basics: It says, to apply for a reverse mortgage in Hawaii you must be 62 or older. It is your age, interest rates and value of your home that will decide the amount you can borrow. And yes, Hawaii reverse mortgage comes with fixed and adjustable interest rates so you have to decide which one will suit you better. One thing more, the money you borrow is not repayable as long as you live in your house and maintain it properly.
• About The Fees And Costs Of Hawaii Reverse Mortgage: Well, reverse mortgage in Hawaii incurs an extensive array of fees. In the case of a regular mortgage, you will be charged a fee for an appraisal, title search or inspection etc. Not only this, there will also be fees for HECM program, which will cover an insurance premium of 0.5% of the house value at the time of closing followed by annual mortgage insurance premium of 1.25% which is added to the interest rate on the loan. You might also get charged an origination fee for the loan.
• If You Are Considering Reverse Mortgage In Hawaii, You Must Be Capable Of Maintaining Your Home: No doubt, Hawaii reverse mortgage program is designed so that you don’t have to repay the loan as long as you are living in your home but for this it requires you to stay regular with homeowners insurance, property taxes and take good care of the property. If you are not doing this, your loan could go into default.
• You Should Be Well Aware Of The Consequences In Case The Borrower Moves Out or Dies: This one is important. If both the spouses are borrowers and one of them dies, the other one has the right to continue living in the house without any repayment. But a problem can arise if one of them is listed as a borrower. So clear it beforehand only.

Thus, before you decide to apply for a reverse mortgage in Hawaii, make sure you have researched well.

Hawaii Reverse Mortgage: Discussing Its Limits and Safety Consequences